10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

For the transition period from __________ to __________

Commission File Number: 001-37621

FIRST GUARANTY BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

 

Louisiana		26-0513559
(State or other jurisdiction incorporation or organization)		(I.R.S. Employer Identification Number)
400 East Thomas Street
Hammond,	Louisiana	70401
(Address of principal executive offices)		(Zip Code)
(985)		345-7685
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1 par value	FGBI	The Nasdaq Stock Market LLC
Depository Shares (each representing a 1/40th interest in a share of 6.75% Series A Fixed-Rate Non-Cumulative perpetual preferred stock)	FGBIP	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filers," "accelerated filers," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐     Accelerated filer ☒   Non-accelerated filer ☐

Smaller reporting company ☒

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of May 9, 2024 the registrant had 12,504,717 shares of $1 par value common stock outstanding.

Table of Contents

		Page
Part I.	Financial Information	4
Item 1.	Financial Statements (unaudited)	4
	Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023	4
	Consolidated Statements of Income for the three months ended March 31, 2024 and 2023	5
	Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023	6
	Consolidated Statements of Shareholders' Equity for the three months ended March 31, 2024 and 2023	7
	Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023	8
	Notes to Unaudited Consolidated Financial Statements	9
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	47
Item 4.	Controls and Procedures	50
Part II.	Other Information	51
Item 1.	Legal Proceedings	51
Item 1A.	Risk Factors	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 3.	Defaults Upon Senior Securities	51
Item 4.	Mine Safety Disclosures	51
Item 5.	Other Information	51
Item 6.	Exhibits	52
Signatures		54

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PART I. FINANCIAL INFORMATION

Item 1.     Consolidated Financial Statements

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS (unaudited) 

(in thousands, except share data)	March 31, 2024		December 31, 2023
Assets
Cash and cash equivalents:
Cash and due from banks	$	331,592	$	286,114
Federal funds sold	465		341
Cash and cash equivalents	332,057		286,455
Investment securities:
Available for sale, at fair value	37,752		83,485
Held to maturity, at cost and net of allowance for credit losses of $80 (estimated fair value of $251,627 and $253,584 respectively)	320,901		320,638
Investment securities	358,653		404,123
Federal Home Loan Bank stock, at cost	10,410		13,390
Loans held for sale	—		—
Loans, net of unearned income	2,752,230		2,748,708
Less: allowance for credit losses	31,450		30,926
Net loans	2,720,780		2,717,782
Premises and equipment, net	70,646		69,792
Goodwill	12,900		12,900
Intangible assets, net	4,088		4,298
Other real estate, net	1,284		1,250
Accrued interest receivable	17,339		15,713
Other assets	27,634		27,069
Total Assets	$	3,555,791	$	3,552,772
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing demand	$	415,113	$	442,755
Interest-bearing demand	1,556,257		1,526,628
Savings	229,098		218,986
Time	863,408		820,725
Total deposits	3,063,876		3,009,094
Short-term advances from Federal Home Loan Bank	—		50,000
Short-term borrowings	—		10,000
Repurchase agreements	6,834		6,297
Accrued interest payable	10,182		11,807
Long-term advances from Federal Home Loan Bank	155,000		155,000
Senior long-term debt	18,102		39,099
Junior subordinated debentures	44,700		15,000
Other liabilities	6,777		6,844
Total Liabilities	3,305,471		3,303,141
Shareholders' Equity
Preferred stock, Series A - $1,000 par value - 100,000 shares authorized
Non-cumulative perpetual; 34,500 shares issued and outstanding	33,058		33,058
Common stock, $1 par value - 100,600,000 shares authorized; 12,504,717 and 12,475,424 shares issued and outstanding	12,505		12,475
Surplus	149,389		149,085
Retained earnings	67,699		67,972
Accumulated other comprehensive (loss) income	(12,331)		(12,959)
Total Shareholders' Equity	250,320		249,631
Total Liabilities and Shareholders' Equity	$	3,555,791	$	3,552,772

See Notes to Consolidated Financial Statements

-4-

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME (unaudited) 

	Three Months Ended March 31,
(in thousands, except share data)	2024		2023
Interest Income:
Loans (including fees)	$	46,918	$	38,149
Deposits with other banks	3,476		751
Securities (including FHLB stock)	2,514		2,387
Total Interest Income	52,908		41,287
Interest Expense:
Demand deposits	16,976		13,049
Savings deposits	1,227		579
Time deposits	9,572		3,576
Borrowings	3,212		1,782
Total Interest Expense	30,987		18,986
Net Interest Income	21,921		22,301
Less: Provision for credit losses	2,304		314
Net Interest Income after Provision for Credit Losses	19,617		21,987
Noninterest Income:
Service charges, commissions and fees	733		785
ATM and debit card fees	764		825
Net gains on securities	—		—
Net gains on sale of loans	—		12
Other	811		1,082
Total Noninterest Income	2,308		2,704
Noninterest Expense:
Salaries and employee benefits	9,900		10,004
Occupancy and equipment expense	2,271		2,202
Other	6,763		7,960
Total Noninterest Expense	18,934		20,166
Income Before Income Taxes	2,991		4,525
Less: Provision for income taxes	681		1,057
Net Income	2,310		3,468
Less: Preferred stock dividends	582		582
Net Income Available to Common Shareholders	$	1,728	$	2,886
Per Common Share:
Earnings	$	0.14	$	0.27
Cash dividends paid	$	0.16	$	0.16
Weighted Average Common Shares Outstanding	12,489,910		10,716,796
See Notes to Consolidated Financial Statements

-5-

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

	Three Months Ended March 31,
(in thousands)	2024		2023
Net Income	$	2,310	$	3,468
Other comprehensive income:
Unrealized (losses) gains on securities:
Unrealized holding gains arising during the period	795		524
Reclassification adjustments for (gains) losses included in net income	—		—
Change in unrealized gains on securities	795		524
Tax impact	(167)		(110)
Other comprehensive income	628		414
Comprehensive Income	$	2,938	$	3,882
See Notes to Consolidated Financial Statements

-6-

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) 

	Preferred Stock $1,000 Par		Common Stock $1 Par		Surplus		Retained Earnings		Accumulated Other Comprehensive Income/(Loss)		Total
(in thousands, except per share data)
Balance December 31, 2022	$	33,058	$	10,717	$	130,093	$	76,351	$	(15,228)	$	234,991
Net income	—		—		—		3,468		—		3,468
Cumulative effect of adoption of ASC Topic 326, net of tax	—		—		—		(7,900)		—		(7,900)
Other comprehensive income (loss)	—		—		—		—		414		414
Preferred stock dividends	—		—		—		(582)		—		(582)
Cash dividends on common stock ($0.16 per share)	—		—		—		(1,715)		—		(1,715)
Balance March 31, 2023 (unaudited)	$	33,058	$	10,717	$	130,093	$	69,622	$	(14,814)	$	228,676
Balance December 31, 2023	$	33,058	$	12,475	$	149,085	$	67,972	$	(12,959)	$	249,631
Net income	—		—		—		2,310		—		2,310
Common Stock issued under Equity Bonus Plan, 29,293 shares	—		30		304		—		—		334
Other comprehensive income	—		—		—		—		628		628
Preferred stock dividends	—		—		—		(582)		—		(582)
Cash dividends on common stock ($0.16 per share)	—		—		—		(2,001)		—		(2,001)
Balance March 31, 2024 (unaudited)	$	33,058	$	12,505	$	149,389	$	67,699	$	(12,331)	$	250,320
See Notes to Consolidated Financial Statements

-7-

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) 

	Three Months Ended March 31,
(in thousands)	2024		2023
Cash Flows From Operating Activities
Net income	$	2,310	$	3,468
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	2,304		314
Depreciation and amortization	1,001		1,011
Amortization/Accretion of investments	127		267
(Gain) loss on sale/call of securities	—		—
(Gain) loss on sale of assets	(6)		(23)
Repossessed asset write downs, gains and losses on dispositions	101		—
FHLB stock dividends	(202)		(62)
Change in other assets and liabilities, net	(3,639)		(943)
Net Cash Provided By Operating Activities	1,996		4,032
Cash Flows From Investing Activities
Proceeds from maturities and calls of HTM securities	—		—
Proceeds from maturities, calls and sales of AFS securities	50,339		50,373
Funds invested in AFS securities	(4,200)		—
Funds invested in Federal Home Loan Bank stock	—		(358)
Proceeds from sale/redemption of Federal Home Loan Bank stock	3,182		2,425
Net increase in loans	(6,153)		(55,500)
Purchase of premises and equipment	(1,600)		(1,117)
Proceeds from sales of premises and equipment	6		11
Proceeds from sales of other real estate owned	269		—
Net Cash Provided by (Used In) Investing Activities	41,843		(4,166)
Cash Flows From Financing Activities
Net increase in deposits	54,782		138,796
Net (decrease) increase in federal funds purchased and short-term borrowings	(59,463)		(69,836)
Proceeds from long-term borrowings	—		20,000
Repayment of long-term borrowings	(21,007)		(813)
Proceeds from subordinated debentures	29,700		—
Proceeds from issuance of common stock	334		—
Dividends paid on preferred stock	(582)		(582)
Dividends paid on common stock	(2,001)		(1,715)
Net Cash Provided By Financing Activities	1,763		85,850
Net Increase (Decrease) In Cash and Cash Equivalents	45,602		85,716
Cash and Cash Equivalents at the Beginning of the Period	286,455		83,219
Cash and Cash Equivalents at the End of the Period	$	332,057	$	168,935
Noncash Activities:
Acquisition of real estate in settlement of loans	$	149	$	774
Transfer of securities from AFS to HTM	$	—	$	—
Cash Paid During The Period:
Interest on deposits and borrowed funds	$	32,612	$	18,667
Federal income taxes	$	—	$	—
State income taxes	$	—	$	—

 See Notes to the Consolidated Financial Statements.

-8-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles. The consolidated financial statements and the footnotes of First Guaranty Bancshares, Inc. ("First Guaranty") thereto should be read in conjunction with the audited consolidated financial statements and note disclosures for First Guaranty previously filed with the Securities and Exchange Commission in First Guaranty's Annual Report on Form 10-K for the year ended December 31, 2023.

The consolidated financial statements include the accounts of First Guaranty Bancshares, Inc. and its wholly owned subsidiary First Guaranty Bank (the "Bank"). All significant intercompany balances and transactions have been eliminated in consolidation.

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of the consolidated financial statements. Those adjustments are of a normal recurring nature. The results of operations at March 31, 2024 and for the three month periods ended March 31, 2024 and 2023 are not necessarily indicative of the results expected for the full year or any other interim period. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for credit losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and the valuation of investment securities.

-9-

Note 2. Recent Accounting Pronouncements

Accounting Standards Adopted in 2024

None.

Accounting Pronouncements Not Yet Adopted

ASU No. 2023-09, "Improvements to Tax Disclosures" ("ASU 2023-09") is intended to enhance the transparency and decision usefulness of income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. This update is effective for annual periods beginning after December 15, 2024, though early adoption is permitted. We do not expect it to have a material effect on First Guaranty's consolidated financial statements.

-10-

Note 3. Securities

A summary comparison of securities by type at March 31, 2024 and December 31, 2023 is shown below. 

	March 31, 2024								December 31, 2023
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale:
U.S. Treasuries	$	—	$	—	$	—	$	—	$	50,048	$	—	$	(218)	$	49,830
U.S. Government Agencies	—		—		—		—		—		—		—		—
Corporate debt securities	16,750		—		(1,157)		15,593		16,750		3		(1,279)		15,474
Municipal bonds	17,405		215		(382)		17,238		13,522		31		(372)		13,181
Mortgage-backed securities	5,121		—		(200)		4,921		5,144		—		(144)		5,000
Total available for sale securities	$	39,276	$	215	$	(1,739)	$	37,752	$	85,464	$	34	$	(2,013)	$	83,485
Held to maturity:
U.S. Government Agencies	$	266,113	$	—	$	(63,262)	$	202,851	$	265,896	$	—	$	(61,532)	$	204,364
Corporate debt securities	54,868		—		(6,092)		48,776		54,822		—		(5,602)		49,220
Total held to maturity securities	$	320,981	$	—	$	(69,354)	$	251,627	$	320,718	$	—	$	(67,134)	$	253,584

The scheduled maturities of securities at March 31, 2024, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to calls or prepayments. Mortgage-backed securities are not due at a single maturity because of amortization and potential prepayment of the underlying mortgages. For this reason, they are presented separately in the maturity table below:  

	At March 31, 2024
(in thousands)	Amortized Cost		Fair Value
Available for sale:
Due in one year or less	$	773	$	770
Due after one year through five years	4,455		4,458
Due after five years through 10 years	21,918		20,887
Over 10 years	7,009		6,716
Subtotal	34,155		32,831
Mortgage-backed securities	5,121		4,921
Total available for sale securities	$	39,276	$	37,752
Held to maturity:
Due in one year or less	$	—	$	—
Due after one year through five years	3,074		2,792
Due after five years through 10 years	114,616		98,521
Over 10 years	203,291		150,314
Total held to maturity securities	$	320,981	$	251,627

At March 31, 2024, $167.9 million of First Guaranty's securities were pledged to secure public funds deposits and borrowings. The pledged securities had a market value of $129.1 million as of March 31, 2024.

Accrued interest receivable on First Guaranty's investment securities was $2.5 million and $1.8 million at March 31, 2024 and December 31, 2023, respectively, and was included in accrued interest receivable on the consolidated balance sheet. First Guaranty had a $0.1 million allowance for credit losses related to the held to maturity portfolio at March 31, 2024 and December 31, 2023.

-11-

The following is a summary of the fair value of securities with gross unrealized losses and an aging of those gross unrealized losses at March 31, 2024.

						At March 31, 2024
	Less Than 12 Months					12 Months or More					Total
(in thousands)	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
Available for sale:
U.S. Treasuries	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—
Corporate debt securities	1	985		(15)		15	14,608		(1,142)		16	15,593		(1,157)
Municipal bonds	4	1,142		(9)		38	5,677		(373)		42	6,819		(382)
Mortgage-backed securities	2	2,587		(31)		5	2,333		(169)		7	4,920		(200)
Total available for sale securities	7	$	4,714	$	(55)	58	$	22,618	$	(1,684)	65	$	27,332	$	(1,739)
Held to maturity:
U.S. Government Agencies	—	$	—	$	—	29	$	202,851	$	(63,262)	29	$	202,851	$	(63,262)
Corporate debt securities	—	—		—		57	48,776		(6,092)		57	48,776		(6,092)
Total held to maturity securities	—	$	—	$	—	86	$	251,627	$	(69,354)	86	$	251,627	$	(69,354)

The following is a summary of the fair value of securities with gross unrealized losses and an aging of those gross unrealized losses at December 31, 2023. 

						At December 31, 2023
	Less Than 12 Months					12 Months or More					Total
(in thousands)	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
Available for sale:
U.S. Treasuries	—	$	—	$	—	3	$	49,830	$	(218)	3	$	49,830	$	(218)
U.S. Government Agencies	—	—		—		—	—		—		—	—		—
Corporate debt securities	—	—		—		15	14,471		(1,279)		15	14,471		(1,279)
Municipal bonds	12	3,417		(6)		41	5,895		(366)		53	9,312		(372)
Mortgage-backed securities	2	2,606		(21)		5	2,394		(123)		7	5,000		(144)
Total available for sale securities	14	$	6,023	$	(27)	64	$	72,590	$	(1,986)	78	$	78,613	$	(2,013)
Held to maturity:
U.S. Government Agencies	—	$	—	$	—	29	$	204,364	$	(61,532)	29	$	204,364	$	(61,532)
Corporate debt securities	—	—		—		57	49,220		(5,602)		57	49,220		(5,602)
Total held to maturity securities	—	$	—	$	—	86	$	253,584	$	(67,134)	86	$	253,584	$	(67,134)

As of March 31, 2024, 151 of First Guaranty's debt securities had unrealized losses totaling 20.3% of the individual securities' amortized cost basis and 19.7% of First Guaranty's total amortized cost basis of the investment securities portfolio. 144 of the 151 securities had been in a continuous loss position for over 12 months at such date. The 144 securities had an aggregate amortized cost basis of $345.3 million and an unrealized loss of $71.0 million at March 31, 2024. Management has the intent and ability to hold these debt securities until maturity or until anticipated recovery.

-12-

Securities are evaluated for impairment from credit losses at least quarterly and more frequently when economic or market conditions warrant such evaluation. Consideration is given to (i) the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, (iii) the recovery of contractual principal and interest and (iv) the intent and ability of First Guaranty to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

Investment securities issued by the U.S. Government and Government sponsored enterprises with unrealized losses and the amount of unrealized losses on those investment securities that are the result of changes in market interest rates will not be credit impaired. First Guaranty has the ability and intent to hold these securities until recovery, which may not be until maturity.

Corporate debt securities in a loss position consist primarily of corporate bonds issued by businesses in the financial, insurance, utility, manufacturing, industrial, consumer products and oil and gas industries. There was one held to maturity corporate security with a credit related impairment loss at March 31, 2024. First Guaranty believes that the remaining issuers will be able to fulfill the obligations of these securities based on evaluations described above. First Guaranty has the ability and intent to hold these securities until they recover, which could be at their maturity dates.

There were no charge-offs recognized securities during the three months ended March 31, 2024. There were no provisions for credit losses recognized on securities during the three months ended March 31, 2024.

For securities that have indications of credit related impairment, management analyzes future expected cash flows to determine if any credit related impairment is evident. Estimated cash flows are determined using management's best estimate of future cash flows based on specific assumptions. The assumptions used to determine the cash flows were based on estimates of loss severity and credit default probabilities. Management reviews reports from credit rating agencies and public filings of issuers. 

At March 31, 2024, First Guaranty's exposure to bond issuers that exceeded 10% of shareholders' equity is below: 

	At March 31, 2024
(in thousands)	Amortized Cost		Fair Value
U.S. Government Treasuries (U.S.)	$	—	$	—
Federal Home Loan Bank (FHLB)	32,222		25,894
Federal Home Loan Mortgage Corporation (Freddie Mac-FHLMC)	97,538		69,528
Federal Farm Credit Bank (FFCB)	138,853		109,762
Total	$	268,613	$	205,184

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Note 4. Loans

The following table summarizes the components of First Guaranty's loan portfolio as of March 31, 2024 and December 31, 2023: 

	March 31, 2024				December 31, 2023
(in thousands except for %)	Balance		As % of Category		Balance		As % of Category
Real Estate:
Construction & land development	$	328,090	11.9	%	$	399,435	14.5	%
Farmland	37,534		1.3	%	32,530		1.2	%
1- 4 Family	456,659		16.5	%	444,850		16.1	%
Multifamily	165,148		6.0	%	118,921		4.3	%
Non-farm non-residential	1,133,516		41.1	%	1,045,865		37.9	%
Total Real Estate	2,120,947		76.8	%	2,041,601		74.0	%
Non-Real Estate:
Agricultural	43,422		1.6	%	41,008		1.5	%
Commercial and industrial (1)	293,292		10.6	%	334,972		12.1	%
Commercial leases	253,016		9.2	%	285,415		10.4	%
Consumer and other	49,458		1.8	%	54,485		2.0	%
Total Non-Real Estate	639,188		23.2	%	715,880		26.0	%
Total Loans Before Unearned Income	2,760,135		100.0	%	2,757,481		100.0	%
Unearned income	(7,905)				(8,773)
Total Loans Net of Unearned Income	$	2,752,230			$	2,748,708

(1) Includes PPP loans fully guaranteed by the SBA of $2.6 million and $2.8 million at March 31, 2024 and December 31, 2023, respectively.

Accrued interest receivable on First Guaranty's loans totaled $14.8 million and $13.9 million at March 31, 2024 and December 31, 2023, respectively, and is included in accrued interest receivable on the consolidated balance sheet. Accrued interest receivable is excluded from First Guaranty's estimate of the allowance for credit losses.

The following table summarizes fixed and floating rate loans by contractual maturity, excluding nonaccrual loans, as of March 31, 2024 and December 31, 2023 unadjusted for scheduled principal payments, prepayments, or repricing opportunities. The average life of the loan portfolio may be substantially less than the contractual terms when these adjustments are considered. 

	March 31, 2024						December 31, 2023
(in thousands)	Fixed		Floating		Total		Fixed		Floating		Total
One year or less	$	271,330	$	122,431	$	393,761	$	268,864	$	88,884	$	357,748
More than one to five years	715,494		323,717		1,039,211		782,754		357,981		1,140,735
More than five to 15 years	81,780		277,294		359,074		88,490		269,918		358,408
Over 15 years	349,617		589,866		939,483		334,337		541,066		875,403
Subtotal	$	1,418,221	$	1,313,308	2,731,529		$	1,474,445	$	1,257,849	2,732,294
Nonaccrual loans					28,606						25,187
Total Loans Before Unearned Income					2,760,135						2,757,481
Unearned income					(7,905)						(8,773)
Total Loans Net of Unearned Income					$	2,752,230					$	2,748,708

Included in floating rate loans are loans that adjust to a floating rate following an initial fixed rate period. The initial fixed rate periods are typically one, three, or five years.

-14-

The following tables present the age analysis of past due loans at March 31, 2024 and December 31, 2023: 

	As of March 31, 2024
(in thousands)	30-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Recorded Investment 90 Days Accruing
Real Estate:
Construction & land development	$	1,675	$	598	$	2,273	$	325,817	$	328,090	$	—
Farmland	88		903		991		36,543		37,534		—
1- 4 family	5,121		8,157		13,278		443,381		456,659		—
Multifamily	—		537		537		164,611		165,148		—
Non-farm non-residential	3,500		24,333		27,833		1,105,683		1,133,516		14,600
Total Real Estate	10,384		34,528		44,912		2,076,035		2,120,947		14,600
Non-Real Estate:
Agricultural	234		1,716		1,950		41,472		43,422		58
Commercial and industrial	5,307		4,691		9,998		283,294		293,292		—
Commercial leases	1,833		1,799		3,632		249,384		253,016		—
Consumer and other	817		530		1,347		48,111		49,458		—
Total Non-Real Estate	8,191		8,736		16,927		622,261		639,188		58
Total Loans Before Unearned Income	$	18,575	$	43,264	$	61,839	$	2,698,296	$	2,760,135	$	14,658
Unearned income									(7,905)
Total Loans Net of Unearned Income									$	2,752,230

 

	As of December 31, 2023
(in thousands)	30-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Recorded Investment 90 Days Accruing
Real Estate:
Construction & land development	$	1,281	$	530	$	1,811	$	397,624	$	399,435	$	—
Farmland	97		836		933		31,597		32,530		—
1- 4 family	3,929		7,109		11,038		433,812		444,850		124
Multifamily	824		537		1,361		117,560		118,921		—
Non-farm non-residential	1,020		24,451		25,471		1,020,394		1,045,865		14,711
Total Real Estate	7,151		33,463		40,614		2,000,987		2,041,601		14,835
Non-Real Estate:
Agricultural	240		1,426		1,666		39,342		41,008		57
Commercial and industrial	2,483		1,976		4,459		330,513		334,972		395
Commercial leases	—		1,799		1,799		283,616		285,415		—
Consumer and other	1,037		1,810		2,847		51,638		54,485		—
Total Non-Real Estate	3,760		7,011		10,771		705,109		715,880		452
Total Loans Before Unearned Income	$	10,911	$	40,474	$	51,385	$	2,706,096	$	2,757,481	$	15,287
Unearned income									(8,773)
Total Loans Net of Unearned Income									$	2,748,708

The tables above include $28.6 million and $25.2 million of nonaccrual loans at March 31, 2024 and December 31, 2023, respectively. See the tables below for more detail on nonaccrual loans.

-15-

The following is a summary of nonaccrual loans by class at the dates indicated: 

	As of March 31, 2024
(in thousands)	With Related Allowance		Without Related Allowance		Total
Real Estate:
Construction & land development	$	598	$	—	$	598
Farmland	502		401		903
1- 4 family	7,051		1,106		8,157
Multifamily	—		537		537
Non-farm non-residential	8,857		876		9,733
Total Real Estate	17,008		2,920		19,928
Non-Real Estate:
Agricultural	1,327		331		1,658
Commercial and industrial	4,691		—		4,691
Commercial leases	—		1,799		1,799
Consumer and other	530		—		530
Total Non-Real Estate	6,548		2,130		8,678
Total Nonaccrual Loans	$	23,556	$	5,050	$	28,606

	As of December 31, 2023
(in thousands)	With Related Allowance		Without Related Allowance		Total
Real Estate:
Construction & land development	$	530	$	—	$	530
Farmland	511		325		836
1- 4 family	5,417		1,568		6,985
Multifamily	—		537		537
Non-farm non-residential	8,730		1,010		9,740
Total Real Estate	15,188		3,440		18,628
Non-Real Estate:
Agricultural	399		970		1,369
Commercial and industrial	1,581		—		1,581
Commercial leases	—		1,799		1,799
Consumer and other	1,810		—		1,810
Total Non-Real Estate	3,790		2,769		6,559
Total Nonaccrual Loans	$	18,978	$	6,209	$	25,187

-16-

The following table presents First Guaranty's loan portfolio by credit quality classification and origination year as of the date indicated:

	As of March 31, 2024
	Term Loans by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior	Revolving Loans		Total
Real Estate:
Construction & land development:
Pass	$	21,005	$	141,694	$	115,445	$	17,090	$	2,256	6,924	$	17,708	$	322,122
Special Mention	—		571		1,115		167		83		1,268	—		3,204
Substandard	—		—		649		454		263		1,267	—		2,633
Doubtful	—		—		39		91		—		1	—		131
Total Construction & land development	21,005		142,265		117,248		17,802		2,602		9,460	17,708		328,090
Current period gross charge-offs	—		—		—		—		—		—	—		—
Farmland
Pass	247		12,615		4,018		3,316		1,727		3,690	3,307		28,920
Special Mention	—		—		225		—		1,780		469	—		2,474
Substandard	—		—		214		2,702		2,534		645	—		6,095
Doubtful	—		—		—		—		—		—	45		45
Total Farmland	247		12,615		4,457		6,018		6,041		4,804	3,352		37,534
Current period gross charge-offs	—		—		—		—		—		—	—		—
1- 4 family
Pass	15,239		112,290		111,489		69,718		40,707		65,440	17,704		432,587
Special Mention	—		1,536		2,054		448		1,102		1,913	432		7,485
Substandard	—		75		2,480		5,636		1,598		5,132	1,148		16,069
Doubtful	—		—		122		—		—		324	72		518
Total 1- 4 family	15,239		113,901		116,145		75,802		43,407		72,809	19,356		456,659
Current period gross charge-offs	—		—		—		—		—		41	—		41
Multifamily
Pass	450		8,363		85,006		45,822		14,993		1,505	5,854		161,993
Special Mention	—		—		—		—		—		2,595	23		2,618
Substandard	—		—		—		—		—		537	—		537
Doubtful	—		—		—		—		—		—	—		—
Total Multifamily	450		8,363		85,006		45,822		14,993		4,637	5,877		165,148
Current period gross charge-offs	—		—		—		—		—		—	—		—
Non-farm non-residential
Pass	24,449		178,389		272,000		133,283		87,002		327,818	37,365		1,060,306
Special Mention	2,219		2,025		363		131		391		16,911	1,040		23,080
Substandard	—		246		19,210		19,366		—		6,039	5,203		50,064
Doubtful	—		—		—		—		66		—	—		66
Total non-farm non-residential	26,668		180,660		291,573		152,780		87,459		350,768	43,608		1,133,516
Current period gross charge-offs	—		—		—		—		—		—	—		—
Total Real Estate	63,609		457,804		614,429		298,224		154,502		442,478	89,901		2,120,947
Non-Real Estate:
Agricultural
Pass	1,118		2,758		10,202		3,067		1,303		3,572	18,034		40,054
Special Mention	—		28		33		—		156		—	66		283
Substandard	—		—		—		692		197		2,104	57		3,050
Doubtful	—		—		—		—		—		35	—		35
Total Agricultural	1,118		2,786		10,235		3,759		1,656		5,711	18,157		43,422
Current period gross charge-offs	—		—		—		33		—		—	—		33
Commercial and industrial
Pass	2,615		33,965		18,801		45,407		44,138		30,617	106,316		281,859

-17-

Special Mention	—		95		46		4,444		117		62		602		5,366
Substandard	—		45		336		195		497		4,722		105		5,900
Doubtful	—		—		—		—		—		167		—		167
Total Commercial and industrial	2,615		34,105		19,183		50,046		44,752		35,568		107,023		293,292
Current period gross charge-offs	—		220		124		75		182		26		—		627
Commercial leases
Pass	5,575		63,385		112,573		61,468		5,440		944		—		249,385
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		3,631		—		—		—		—		3,631
Doubtful	—		—		—		—		—		—		—		—
Total Commercial leases	5,575		63,385		116,204		61,468		5,440		944		—		253,016
Current period gross charge-offs	—		—		—		—		—		—		—		—
Consumer and other loans
Pass	2,852		19,403		7,387		5,541		5,698		6,894		—		47,775
Special Mention	—		31		104		185		65		27		—		412
Substandard	—		132		581		352		88		103		—		1,256
Doubtful	—		—		—		—		—		15		—		15
Total Consumer and other loans	2,852		19,566		8,072		6,078		5,851		7,039		—		49,458
Current period gross charge-offs	65		346		534		377		201		61		—		1,584
Total Non-Real Estate	12,160		119,842		153,694		121,351		57,699		49,262		125,180		639,188
Total Loans
Pass	73,550		572,862		736,921		384,712		203,264		447,404		206,288		2,625,001
Special Mention	2,219		4,286		3,940		5,375		3,694		23,245		2,163		44,922
Substandard	—		498		27,101		29,397		5,177		20,549		6,513		89,235
Doubtful	—		—		161		91		66		542		117		977
Total Loans Before Unearned Income	$	75,769	$	577,646	$	768,123	$	419,575	$	212,201	$	491,740	$	215,081	$	2,760,135
Unearned income															(7,905)
Total Loans Net of Unearned Income															$	2,752,230
Total Current Period Gross Charge-offs	$	65	$	566	$	658	$	485	$	383	$	128	$	—	$	2,285

	As of December 31, 2023
	Term Loans by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Prior	Revolving Loans		Total
Real Estate:
Construction & land development:
Pass	$	134,527	$	140,068	$	75,884	$	3,369	$	8,533	11,940	$	18,907	$	393,228
Special Mention	789		1,579		170		—		90		250	—		2,878
Substandard	—		716		458		263		94		1,668	—		3,199
Doubtful	—		39		91		—		—		—	—		130
Total Construction & land development	135,316		142,402		76,603		3,632		8,717		13,858	18,907		399,435
Current period gross charge-offs	—		—		—		—		—		—	—		—
Farmland
Pass	9,513		4,032		3,340		1,768		253		2,730	2,162		23,798
Special Mention	—		194		—		514		—		359	—		1,067
Substandard	—		251		1,369		3,877		115		653	1,355		7,620
Doubtful	—		—		—		—		—		—	45		45
Total Farmland	9,513		4,477		4,709		6,159		368		3,742	3,562		32,530
Current period gross charge-offs	—		—		—		—		—		—	—		—

-18-

1- 4 family
Pass	112,636	110,978	70,599	41,766	19,542	47,374	17,215	420,110
Special Mention	1,307	2,505	749	1,544	775	997	667	8,544
Substandard	48	2,625	5,368	1,357	1,956	3,086	773	15,213
Doubtful	—	122	391	—	239	159	72	983
Total 1- 4 family	113,991	116,230	77,107	44,667	22,512	51,616	18,727	444,850
Current period gross charge-offs	—	—	—	—	—	964	—	964
Multifamily
Pass	9,945	76,217	6,121	15,131	1,877	2,311	5,110	116,712
Special Mention	—	—	—	—	—	1,648	24	1,672
Substandard	—	—	—	—	—	537	—	537
Doubtful	—	—	—	—	—	—	—	—
Total Multifamily	9,945	76,217	6,121	15,131	1,877	4,496	5,134	118,921
Current period gross charge-offs	—	—	—	—	—	—	—	—
Non-farm non-residential
Pass	162,234	247,182	111,054	88,039	73,797	256,032	33,907	972,245
Special Mention	708	369	1,014	388	15,846	5,191	1,525	25,041
Substandard	247	18,930	18,488	—	—	6,125	4,723	48,513
Doubtful	—	—	—	66	—	—	—	66
Total non-farm non-residential	163,189	266,481	130,556	88,493	89,643	267,348	40,155	1,045,865
Current period gross charge-offs	—	—	—	138	—	—	—	138
Total Real Estate	431,954	605,807	295,096	158,082	123,117	341,060	86,485	2,041,601
Non-Real Estate:
Agricultural
Pass	2,555	10,406	3,142	1,336	1,532	2,378	16,259	37,608
Special Mention	—	104	—	81	—	—	25	210
Substandard	—	—	692	279	20	2,100	57	3,148
Doubtful	—	—	—	—	—	42	—	42
Total Agricultural	2,555	10,510	3,834	1,696	1,552	4,520	16,341	41,008
Current period gross charge-offs	—	—	—	—	—	—	—	—
Commercial and industrial
Pass	41,105	27,800	48,097	53,585	5,613	27,634	119,886	323,720
Special Mention	63	37	4,382	146	—	53	598	5,279
Substandard	45	283	178	602	27	4,531	145	5,811
Doubtful	—	—	—	—	—	162	—	162
Total Commercial and industrial	41,213	28,120	52,657	54,333	5,640	32,380	120,629	334,972
Current period gross charge-offs	29	791	133	532	—	209	—	1,694
Commercial leases
Pass	74,456	117,566	67,615	6,087	4,428	—	—	270,152
Special Mention	—	11,867	1,597	—	—	—	—	13,464
Substandard	—	1,799	—	—	—	—	—	1,799
Doubtful	—	—	—	—	—	—	—	—
Total Commercial leases	74,456	131,232	69,212	6,087	4,428	—	—	285,415
Current period gross charge-offs	—	—	—	—	—	—	—	—
Consumer and other loans
Pass	21,257	8,770	6,463	6,164	650	7,887	150	51,341
Special Mention	36	151	255	87	15	19	—	563
Substandard	164	1,077	790	265	86	68	—	2,450
Doubtful	—	—	34	79	2	16	—	131
Total Consumer and other loans	21,457	9,998	7,542	6,595	753	7,990	150	54,485
Current period gross charge-offs	598	1,126	820	359	28	44	—	2,975
Total Non-Real Estate	139,681	179,860	133,245	68,711	12,373	44,890	137,120	715,880
Total Loans

-19-

Pass	568,228		743,019		392,315		217,245		116,225		358,286		213,596		2,608,914
Special Mention	2,903		16,806		8,167		2,760		16,726		8,517		2,839		58,718
Substandard	504		25,681		27,343		6,643		2,298		18,768		7,053		88,290
Doubtful	—		161		516		145		241		379		117		1,559
Total Loans Before Unearned Income	$	571,635	$	785,667	$	428,341	$	226,793	$	135,490	$	385,950	$	223,605	$	2,757,481
Unearned income															(8,773)
Total Loans Net of Unearned Income															$	2,748,708
Total Current Period Gross Charge-offs	$	627	$	1,917	$	953	$	1,029	$	28	$	1,217	$	—	$	5,771

-20-

Note 5. 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, 2024 and 2023 are as follows: 

	For the Three Months Ended March 31,
	2024
(in thousands)	Beginning Allowance (12/31/2023)		Charge-offs		Recoveries		Provision		Ending Allowance (3/31/2024)
Real Estate:
Construction & land development	$	5,845	$	—	$	1	$	(1,016)	$	4,830
Farmland	36		—		—		27		63
1- 4 family	6,653		(41)		3		(20)		6,595
Multifamily	1,614		—		—		163		1,777
Non-farm non-residential	10,596		—		8		712		11,316
Total Real Estate	24,744		(41)		12		(134)		24,581
Non-Real Estate:
Agricultural	97		(33)		10		46		120
Commercial and industrial	2,711		(627)		115		1,684		3,883
Commercial leases	1,948		—		—		(564)		1,384
Consumer and other	1,426		(1,584)		118		1,522		1,482
Unallocated	—		—		—		—		—
Total Non-Real Estate	6,182		(2,244)		243		2,688		6,869
Total	$	30,926	$	(2,285)	$	255	$	2,554	$	31,450

	For the Three Months Ended March 31,
	2023
(in thousands)	Beginning Allowance (12/31/2022)		ASC 326 Adoption Day 1 Adjustment		Charge-offs		Recoveries		Provision		Ending Allowance (3/31/2023)
Real Estate:
Construction & land development	$	1,232	$	1,891	$	—	$	—	$	779	$	3,902
Farmland	83		(39)		—		—		(6)		38
1- 4 family	1,761		3,465		(33)		3		253		5,449
Multifamily	746		1,418		—		—		194		2,358
Non-farm non-residential	9,280		307		(138)		34		561		10,044
Total Real Estate	13,102		7,042		(171)		37		1,781		21,791
Non-Real Estate:
Agricultural	240		(98)		—		167		(166)		143
Commercial and industrial	2,194		2,971		(44)		154		(1,021)		4,254
Commercial leases	4,879		(162)		—		—		(2,280)		2,437
Consumer and other	2,506		(1,042)		(758)		131		860		1,697
Unallocated	597		(591)		—		—		1,140		1,146
Total Non-Real Estate	10,416		1,078		(802)		452		(1,467)		9,677
Total	$	23,518	$	8,120	$	(973)	$	489	$	314	$	31,468

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.

-21-

A summary of the allowance along with loans and leases individually and collectively evaluated are as follows: 

	As of March 31, 2024
(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	$	—	$	4,830	$	4,830	$	1,267	$	326,823	$	328,090
Farmland	—		63		63		5,638		31,896		37,534
1- 4 family	471		6,124		6,595		4,316		452,343		456,659
Multifamily	—		1,777		1,777		537		164,611		165,148
Non-farm non-residential	3,362		7,954		11,316		46,235		1,087,281		1,133,516
Total Real Estate	3,833		20,748		24,581		57,993		2,062,954		2,120,947
Non-Real Estate:
Agricultural	15		105		120		1,466		41,956		43,422
Commercial and industrial	2,483		1,400		3,883		3,717		289,575		293,292
Commercial leases	—		1,384		1,384		3,631		249,385		253,016
Consumer and other	—		1,482		1,482		—		49,458		49,458
Unallocated	—		—		—		—		—		—
Total Non-Real Estate	2,498		4,371		6,869		8,814		630,374		639,188
Total	$	6,331	$	25,119	$	31,450	$	66,807	$	2,693,328	2,760,135
Unearned Income											(7,905)
Total Loans Net of Unearned Income											$	2,752,230

All loans individually evaluated for impairment as of March 31, 2024 were considered collateral dependent loans.

	As of December 31, 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	$	—	$	5,845	$	5,845	$	1,389	$	398,046	$	399,435
Farmland	—		36		36		5,670		26,860		32,530
1- 4 family	316		6,337		6,653		5,066		439,784		444,850
Multifamily	—		1,614		1,614		537		118,384		118,921
Non-farm non-residential	3,047		7,549		10,596		46,571		999,294		1,045,865
Total Real Estate	3,363		21,381		24,744		59,233		1,982,368		2,041,601
Non-Real Estate:
Agricultural	1		96		97		1,466		39,542		41,008
Commercial and industrial	758		1,953		2,711		4,464		330,508		334,972
Commercial leases	—		1,948		1,948		1,799		283,616		285,415
Consumer and other	—		1,426		1,426		—		54,485		54,485
Unallocated	—		—		—		—		—		—
Total Non-Real Estate	759		5,423		6,182		7,729		708,151		715,880
Total	$	4,122	$	26,804	$	30,926	$	66,962	$	2,690,519	2,757,481
Unearned Income											(8,773)
Total loans net of unearned income											$	2,748,708

All loans individually evaluated for impairment as of December 31, 2023 were considered collateral dependent loans.

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Note 6. Goodwill and Other Intangible Assets

Goodwill and intangible assets deemed to have indefinite lives are no longer amortized but are subject to impairment testing. Other intangible assets continue to be amortized over their useful lives. First Guaranty's goodwill is the difference in purchase price over the fair value of net assets acquired from its acquisition of Homestead Bancorp in 2007, Premier Bancshares, Inc. in 2017 and Union Bancshares, Incorporated in 2019. Goodwill totaled $12.9 million at March 31, 2024 and December 31, 2023. No impairment charges have been recognized on First Guaranty's intangible assets since acquisition. Loan servicing assets totaled $0.5 million at March 31, 2024 and December 31, 2023. Other intangible assets recorded include core deposit intangibles, which are subject to amortization. The weighted-average amortization period remaining for First Guaranty's core deposit intangibles is 5 years at March 31, 2024. The core deposits intangible reflect the value of deposit relationships, including the beneficial rates, which arose from acquisitions.

Note 7. Other Real Estate (ORE)

Other real estate owned consists of the following at the dates indicated: 

(in thousands)	March 31, 2024		December 31, 2023
Real Estate Owned Acquired by Foreclosure:
Residential	$	312	$	309
Construction & land development	282		251
Non-farm non-residential	690		690
Total Other Real Estate Owned and Foreclosed Property	1,284		1,250
Allowance for Other Real Estate Owned losses	—		—
Net Other Real Estate Owned and Foreclosed Property	$	1,284	$	1,250

Loans secured by one-to-four family residential properties in the process of foreclosure totaled $1.3 million as of March 31, 2024.

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Note 8. Commitments and Contingencies

Off-balance sheet commitments

First Guaranty is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit and standby and commercial letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of the involvement in particular classes of financial instruments.

The exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby and commercial letters of credit is represented by the contractual notional amount of those instruments. The same credit policies are used in making commitments and conditional obligations as it does for balance sheet instruments. Unless otherwise noted, collateral or other security is not required to support financial instruments with credit risk.

Below is a summary of the notional amounts of the financial instruments with off-balance sheet risk at March 31, 2024 and December 31, 2023:

Contract Amount

(in thousands)	March 31, 2024		December 31, 2023
Commitments to Extend Credit	$	257,034	$	304,218
Unfunded Commitments under lines of credit	$	203,631	$	214,546
Commercial and Standby letters of credit	$	14,544	$	13,971

Allowance For Credit Losses - Off- Balance-Sheet Credit Exposures

The provision for credit losses on unfunded commitments was a reversal of $0.3 million for the three months ended March 31, 2024. The ACL on off-balance-sheet credit exposures total $2.6 million at March 31, 2024 and $2.8 million at December 31, 2023 and is included in other liabilities on the accompanying consolidated balance sheets.

Litigation

First Guaranty is subject to various legal proceedings in the normal course of its business. First Guaranty assesses its liabilities and contingencies in connection with outstanding legal proceedings. Where it is probable that First Guaranty will incur a loss and the amount of the loss can be reasonably estimated, First Guaranty records a liability in its consolidated financial statements. First Guaranty does not record a loss if the loss is not probable or the amount of the loss is not estimable. First Guaranty Bank is a defendant in a lawsuit alleging fault for a loss of funds by a customer related to fraud by a third party with a possible loss range of $0.0 million to $1.5 million. The Bank denies the allegations and intends to vigorously defend against this lawsuit, which is in early stages and no trial date has been set. No accrued liability has been recorded related to this lawsuit. First Guaranty settled a case in the third quarter of 2021 for $1.1 million. A receivable for $0.9 million has been recorded for recovery by a claim against First Guaranty's insurer. In the opinion of management, neither First Guaranty nor First Guaranty Bank is currently involved in such legal proceedings, either individually or in the aggregate, that the resolution is expected to have a material adverse effect on First Guaranty’s consolidated results of operations, financial condition, or cash flows. However, one or more unfavorable outcomes in these ordinary claims or litigation against First Guaranty or First Guaranty Bank could have a material adverse effect for the period in which they are resolved. In addition, regardless of their merits or ultimate outcomes, such matters are costly, divert management’s attention, and may materially and adversely affect the reputation of First Guaranty and First Guaranty Bank, even if resolved favorably.

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Note 9. Fair Value Measurements

The fair value of a financial instrument is the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. Valuation techniques use certain inputs to arrive at fair value. Inputs to valuation techniques are the assumptions that market participants would use in pricing the asset or liability. They may be observable or unobservable. First Guaranty uses a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1 Inputs – Unadjusted quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds or credit risks) or inputs that are derived principally from or corroborated by market data by correlation or other means.

Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

A description of the valuation methodologies used for instruments measured at fair value follows, as well as the classification of such instruments within the valuation hierarchy.

Securities available for sale. Securities are classified within Level 1 where quoted market prices are available in an active market. Inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are unavailable, fair value is estimated using quoted prices of securities with similar characteristics, at which point the securities would be classified within Level 2 of the hierarchy. Securities classified within Level 3 in First Guaranty's portfolio as of March 31, 2024 includes corporate debt and municipal securities.

Loan individually evaluated for impairment. Fair value is measured by either the fair value of the collateral if the loan is collateral dependent (Level 2 or Level 3), or the present value of expected future cash flows, discounted at the loan's effective interest rate (Level 3). Fair value of the collateral is determined by appraisals or by independent valuation. 

Other real estate owned. Properties are recorded at the balance of the loan or at estimated fair value less estimated selling costs, whichever is less, at the date acquired. Fair values of other real estate owned ("OREO") are determined by sales agreement or appraisal, and costs to sell are based on estimation per the terms and conditions of the sales agreement or amounts commonly used in real estate transactions. Inputs include appraisal values or recent sales activity for similar assets in the property's market; thus, OREO measured at fair value would be classified within either Level 2 or Level 3 of the hierarchy.

Certain non-financial assets and non-financial liabilities are measured at fair value on a non-recurring basis including assets and liabilities related to reporting units measured at fair value in the testing of goodwill impairment, as well as intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment.

The following table summarizes financial assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: 

(in thousands)	March 31, 2024		December 31, 2023
Available for Sale Securities Fair Value Measurements Using:
Level 1: Quoted Prices in Active Markets For Identical Assets	$	—	$	49,830
Level 2: Significant Other Observable Inputs	27,530		23,172
Level 3: Significant Unobservable Inputs	10,222		10,483
Securities available for sale measured at fair value	$	37,752	$	83,485

First Guaranty's valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While the methodologies used are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value.

The change in Level 1 securities available for sale from December 31, 2023 to March 31, 2024 was due to a net decrease in Treasury bills of $49.8 million. There were no transfers between Level 2 and Level 3 from December 31, 2023 to March 31, 2024. There were no transfers between Level 1 and 2 securities available for sale from December 31, 2023 to March 31, 2024.

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The following table reconciles assets measured at fair value on a recurring basis using unobservable inputs (Level 3):

	Level 3 Changes
(in thousands)	March 31, 2024
Balance, beginning of year	$	10,483
Total gains or losses (realized/unrealized):
Included in earnings	—
Included in other comprehensive income	69
Purchases, sales, issuances and settlements, net	(330)
Transfers in and/or out of Level 3	—
Balance as of end of period	$	10,222

There were no gains or losses for the period included in earnings attributable to the change in unrealized gains or losses related to assets still held as of March 31, 2024.

The following table measures financial assets and financial liabilities measured at fair value on a non-recurring basis as of March 31, 2024 and December 31, 2023, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value: 

(in thousands)	At March 31, 2024		At December 31, 2023
Fair Value Measurements Using: Loans Individually Evaluated for Impairment
Level 1: Quoted Prices in Active Markets For Identical Assets	$	—	$	—
Level 2: Significant Other Observable Inputs	—		—
Level 3: Significant Unobservable Inputs	6,600		8,083
Loans individually evaluated for impairment measured at fair value	$	6,600	$	8,083
Fair Value Measurements Using: Other Real Estate Owned
Level 1: Quoted Prices in Active Markets For Identical Assets	$	—	$	—
Level 2: Significant Other Observable Inputs	1,284		1,250
Level 3: Significant Unobservable Inputs	—		—
Other real estate owned measured at fair value	$	1,284	$	1,250

ASC 825-10 provides First Guaranty with an option to report selected financial assets and liabilities at fair value. The fair value option established by this statement permits First Guaranty to choose to measure eligible items at fair value at specified election dates and report unrealized gains and losses on items for which the fair value option has been elected in earnings at each reporting date subsequent to implementation.

First Guaranty has chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with accounting principles generally accepted in the United States.

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Note 10. Financial Instruments

Fair value estimates are generally subjective in nature and are dependent upon a number of significant assumptions associated with each instrument or group of similar instruments, including estimates of discount rates, risks associated with specific financial instruments, estimates of future cash flows and relevant available market information. Fair value information is intended to represent an estimate of an amount at which a financial instrument could be exchanged in a current transaction between a willing buyer and seller engaging in an exchange transaction. However, since there are no established trading markets for a significant portion of First Guaranty's financial instruments, First Guaranty may not be able to immediately settle financial instruments; as such, the fair values are not necessarily indicative of the amounts that could be realized through immediate settlement. In addition, the majority of the financial instruments, such as loans and deposits, are held to maturity and are realized or paid according to the contractual agreement with the customer.

Quoted market prices are used to estimate fair values when available. However, due to the nature of the financial instruments, in many instances quoted market prices are not available. Accordingly, estimated fair values have been estimated based on other valuation techniques, such as discounting estimated future cash flows using a rate commensurate with the risks involved or other acceptable methods. Fair values are estimated without regard to any premium or discount that may result from concentrations of ownership of financial instruments, possible income tax ramifications or estimated transaction costs. The fair value estimates are subjective in nature and involve matters of significant judgment and, therefore, cannot be determined with precision. Fair values are also estimated at a specific point in time and are based on interest rates and other assumptions at that date. As events change the assumptions underlying these estimates, the fair values of financial instruments will change.

Disclosure of fair values is not required for certain items such as lease financing, investments accounted for under the equity method of accounting, obligations of pension and other postretirement benefits, premises and equipment, other real estate, prepaid expenses, the value of long-term relationships with depositors (core deposit intangibles) and other customer relationships, other intangible assets and income tax assets and liabilities. Fair value estimates are presented for existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses have not been considered in the estimates. Accordingly, the aggregate fair value amounts presented do not purport to represent and should not be considered representative of the underlying market or franchise value of First Guaranty.

Because the standard permits many alternative calculation techniques and because numerous assumptions have been used to estimate the fair values, reasonable comparison of the fair value information with other financial institutions' fair value information cannot necessarily be made. The methods and assumptions used to estimate the fair values of financial instruments are as follows:

Cash and due from banks, interest-bearing deposits with banks, federal funds sold and federal funds purchased.

These items are generally short-term and the carrying amounts reported in the consolidated balance sheets are a reasonable estimation of the fair values.

Investment Securities.

Fair values are principally based on quoted market prices. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or the use of discounted cash flow analyses.

Loans Held for Sale.

Fair values of mortgage loans held for sale are based on commitments on hand from investors or prevailing market prices. These loans are classified within level 3 of the fair value hierarchy.

Loans, net.

Market values are computed present values using net present value formulas. The present value is the sum of the present value of all projected cash flows on an item at a specified discount rate. The discount rate is set as an appropriate rate index, plus or minus an appropriate spread. These loans are classified within level 3 of the fair value hierarchy.

Loan individually evaluated for impairment.

Fair value is measured by either the fair value of the collateral if the loan is collateral dependent (Level 2 or Level 3), or the present value of expected future cash flows, discounted at the loan's effective interest rate (Level 3). Fair value of the collateral is determined by appraisals or by independent valuation.

Cash Surrender of BOLI.

The cash surrender value of BOLI approximates fair value.

Accrued interest receivable.

The carrying amount of accrued interest receivable approximates its fair value.

Deposits.

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The fair value of customer deposits, excluding certificates of deposit, is the amount payable on demand. Market values of certificates of deposit are actually computed present values using net present value formulas. The present value is the sum of the present value of all projected cash flows on an item at a specified discount rate. The discount rate is set as an appropriate rate index, plus or minus an appropriate spread. Deposits are classified within level 3 of the fair value hierarchy.

 Accrued interest payable.

The carrying amount of accrued interest payable approximates its fair value.

Borrowings.

The carrying amount of federal funds purchased and other short-term borrowings approximate their fair values. The fair value of First Guaranty's long-term borrowings is computed using net present value formulas. The present value is the sum of the present value of all projected cash flows on an item at a specified discount rate. The discount rate is set as an appropriate rate index, plus or minus an appropriate spread. Borrowings are classified within level 3 of the fair value hierarchy.

Other Unrecognized Financial Instruments.

The fair value of commitments to extend credit is estimated using the fees charged to enter into similar legally binding agreements, taking into account the remaining terms of the agreements and customers' credit ratings. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit are based on fees charged for similar agreements or on estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. At March 31, 2024 and December 31, 2023, the fair value of guarantees under commercial and standby letters of credit was not material.

The carrying amounts and estimated fair values of financial instruments at March 31, 2024 were as follows:

	Fair Value Measurements at March 31, 2024 Using
(in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Assets
Cash and due from banks	$	331,592	$	331,592	$	—	$	—	$	331,592
Federal funds sold	465		465		—		—		465
Securities, available for sale	37,752		—		27,530		10,222		37,752
Securities, held for maturity	320,901		—		251,627		—		251,627
Loans held for sale	—		—		—		—		—
Loans, net	2,720,780		—		—		2,572,245		2,572,245
Cash surrender value of BOLI	5,898		—		—		5,898		5,898
Accrued interest receivable	17,339		—		—		17,339		17,339
Liabilities
Deposits	$	3,063,876	$	—	$	—	$	3,069,935	3,069,935
Short-term advances from Federal Home Loan Bank	—						—		—
Short-term borrowings	—		—		—		—		—
Repurchase agreements	6,834		—		—		6,738		6,738
Accrued interest payable	10,182		—		—		10,182		10,182
Long-term advances from Federal Home Loan Bank	155,000		—		—		152,481		152,481
Senior long-term debt	18,102		—		—		18,297		18,297
Junior subordinated debentures	44,700		—		—		44,700		44,700

-28-

The carrying amounts and estimated fair values of financial instruments at December 31, 2023 were as follows:

			Fair Value Measurements at December 31, 2023 Using
(in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Assets
Cash and due from banks	$	286,114	$	286,114	$	—	$	—	$	286,114
Federal funds sold	341		341		—		—		341
Securities, available for sale	83,485		49,830		23,172		10,483		83,485
Securities, held for maturity	320,638		—		253,584		—		253,584
Loans, net	2,717,782		—		—		2,581,979		2,581,979
Cash surrender value of BOLI	5,861		—		—		5,861		5,861
Accrued interest receivable	15,713		—		—		15,713		15,713
Liabilities
Deposits	$	3,009,094	$	—	$	—	$	3,001,498	3,001,498
Short-term advances from Federal Home Loan Bank	50,000		—		—		50,000		50,000
Short-term borrowings	10,000		—		—		10,000		10,000
Repurchase agreements	6,297		—		—		6,285		6,285
Accrued interest payable	11,807		—		—		11,807		11,807
Long-term advances from Federal Home Loan Bank	155,000		—		—		152,299		152,299
Senior long-term debt	39,099		—		—		39,304		39,304
Junior subordinated debentures	15,000		—		—		15,000		15,000

There is no material difference between the contract amount and the estimated fair value of off-balance sheet items that are primarily comprised of short-term unfunded loan commitments that are generally at market prices.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of First Guaranty's financial condition and results of operations is intended to highlight the significant factors affecting First Guaranty's financial condition and results of operations presented in the consolidated financial statements included in this Form 10-Q. This discussion is designed to provide readers with a more comprehensive view of the operating results and financial position than would be obtained from reading the consolidated financial statements alone. Reference should be made to those statements for an understanding of the following review and analysis. The financial data at March 31, 2024 and for the three months ended March 31, 2024 and 2023 have been derived from unaudited consolidated financial statements and include, in the opinion of management, all adjustments (consisting of normal recurring accruals and provisions) necessary to present fairly First Guaranty's financial position and results of operations for such periods.

Special Note Regarding Forward-Looking Statements

Congress passed the Private Securities Litigation Act of 1995 in an effort to encourage corporations to provide information about a company's anticipated future financial performance. This act provides a safe harbor for such disclosure, which protects us from unwarranted litigation, if actual results are different from management expectations. This discussion and analysis contains forward-looking statements and reflects management's current views and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "may," "should," "expect," "anticipate," "intend," "plan," "continue," "believe," "seek," "estimate" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of factors and uncertainties, including, changes in general economic conditions, either nationally or in our market areas, that are worse than expected; competition among depository and other financial institutions; inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; adverse changes in the securities markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to successfully integrate acquired entities; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board; changes in our organization, compensation and benefit plans; changes in our financial condition or results of operations that reduce capital available to pay dividends; increases in our provision for credit losses and changes in the financial condition or future prospects of issuers of securities that we own, which could cause our actual results and experience to differ from the anticipated results and expectations, expressed in such forward-looking statements. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

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First Quarter March 31, 2024 Financial Overview

First Guaranty Bancshares is a Louisiana corporation and a financial holding company headquartered in Hammond, Louisiana. Our wholly-owned subsidiary, First Guaranty Bank, a Louisiana-chartered commercial bank, provides personalized commercial banking services primarily to Louisiana and Texas customers through 35 banking facilities primarily located in the MSAs of Hammond, Baton Rouge, Lafayette, Shreveport-Bossier City, Lake Charles and Alexandria, Louisiana and Dallas-Fort Worth-Arlington, Waco, Texas and Mideast markets in Kentucky and West Virginia. We emphasize personal relationships and localized decision making to ensure that products and services are matched to customer needs. We compete for business principally on the basis of personal service to customers, customer access to officers and directors and competitive interest rates and fees.

Financial highlights for the first quarter and three months ended March 31, 2024 are as follows:

•Total assets increased $3.0 million and were $3.6 billion at March 31, 2024 and December 31, 2023. Total loans at March 31, 2024 were $2.8 billion, an increase of $3.5 million, or 0.1%, compared with December 31, 2023. Total deposits were $3.1 billion at March 31, 2024, an increase of $54.8 million, or 1.8%, compared with December 31, 2023. Retained earnings were $67.7 million at March 31, 2024, a decrease of $0.3 million compared to $68.0 million at December 31, 2023. Shareholders' equity was $250.3 million and $249.6 million at March 31, 2024 and December 31, 2023, respectively.

•Net income for the first quarter of 2024 and 2023 was $2.3 million and $3.5 million, respectively, a decrease of $1.2 million or 33.4%.

•Earnings per common share were $0.14 and $0.27 for the first quarter of 2024 and 2023, respectively. Total weighted average shares outstanding were 12,489,910 and 10,716,796 for the first quarter of 2024 and 2023, respectively. The change in shares was due to the issuance of 29,293 shares of common stock under the Equity Bonus Plan during the first quarter of 2024 and the issuance of 1,714,287 shares of common stock under private placement in 2023.

•The allowance for credit losses was 1.14% of total loans at March 31, 2024 compared to 1.13% at December 31, 2023.

•Net interest income for the first quarter of 2024 was $21.9 million compared to $22.3 million for the same period in 2023.

•The provision for credit losses for the first quarter of 2024 was $2.3 million compared to $0.3 million for the same period in 2023.

•First Guaranty had $1.3 million of other real estate owned as of March 31, 2024 and December 31, 2023.

•Noninterest income for the first quarter of 2024 was $2.3 million compared to $2.7 million for the same period in 2023.

•The net interest margin for the three months ended March 31, 2024 was 2.58% which was a decrease of 41 basis points from the net interest margin of 2.99% for the same period in 2023. First Guaranty attributed the decrease in the net interest margin to the increase in market interest rates that began in 2022 and continued through 2023 that increased the cost of liabilities. Loans as a percentage of average interest earning assets decreased to 80.8% at March 31, 2024 compared to 83.5% at March 31, 2023.

•Investment securities totaled $358.7 million at March 31, 2024, a decrease of $45.5 million when compared to $404.1 million at December 31, 2023. At March 31, 2024, available for sale securities, at fair value, totaled $37.8 million, a decrease of $45.7 million when compared to $83.5 million at December 31, 2023. At March 31, 2024, held to maturity securities, at amortized cost and net of the allowance for credit losses totaled $320.9 million, an increase of $0.3 million when compared to $320.6 million at December 31, 2023. The allowance for credit losses for HTM securities was $0.1 million at March 31, 2024 and December 31, 2023.

•Total loans net of unearned income were $2.8 billion at March 31, 2024, a net increase of $3.5 million from December 31, 2023. Total loans net of unearned income are reduced by the allowance for credit losses which totaled $31.5 million at March 31, 2024 and $30.9 million at December 31, 2023, respectively.

•Nonaccrual loans increased $3.4 million to $28.6 million at March 31, 2024 compared to $25.2 million at December 31, 2023.

•Return on average assets for the three months ended March 31, 2024 and 2023 was 0.26% and 0.45%, respectively. Return on average common equity for the three months ended March 31, 2024 and 2023 was 3.17% and 5.80%, respectively. Return on average assets is calculated by dividing annualized net income by average assets. Return on average common equity is calculated by dividing annualized net income by average common equity.

•Book value per common share was $17.37 as of March 31, 2024 compared to $17.36 as of December 31, 2023. The increase was due primarily to the recent issuance of new shares and changes in accumulated other comprehensive income ("AOCI"). AOCI is comprised of unrealized gains and losses on available for sale securities, including unrealized losses on available for sale securities at the time of transfer to held to maturity.

•First Guaranty's Board of Directors declared cash dividends of $0.16 per common share in the first quarter of 2024 and 2023. First Guaranty has paid 123 consecutive quarterly dividends as of March 31, 2024.

•First Guaranty paid preferred stock dividends of $0.6 million during the first three months of 2024 and 2023.

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Financial Condition

Changes in Financial Condition from December 31, 2023 to March 31, 2024

Assets

Total assets at March 31, 2024 were $3.6 billion, an increase of $3.0 million, or 0.1%, from December 31, 2023. Assets increased primarily due to increases in net loans of $3.0 million and cash and cash equivalents of $45.6 million, partially offset by a decrease in investment securities of $45.5 million at March 31, 2024 compared to December 31, 2023.

Loans

Net loans increased $3.0 million, or 0.1%, to $2.7 billion at March 31, 2024 from December 31, 2023. Non-farm non-residential loan balances increased $87.7 million due to new originations. Multifamily loans increased $46.2 million primarily due to the conversion of existing construction loans to permanent financing and the origination of new loans. One-to-four family residential loans increased $11.8 million primarily due to new originations. Farmland loans increased $5.0 million primarily due to seasonal activity. Agricultural loans increased $2.4 million due to seasonal activity. Consumer and other loans decreased $5.0 million primarily due to paydowns. Commercial lease loan balances decreased $32.4 million primarily due to paydowns. First Guaranty's commercial lease portfolio generally has higher yields than commercial real estate loans but shorter average lives. Commercial and industrial loans decreased $41.7 million primarily due to paydowns. Construction and land development loans decreased $71.3 million principally due to the conversion of loans to permanent financing. First Guaranty had approximately 2.7% of funded and 2.0% of unfunded commitments in our loan portfolio to businesses engaged in support or service activities for oil and gas operations. First Guaranty's hotel and hospitality portfolio totaled $181.4 million at March 31, 2024. As part of the management of risks in our loan portfolio, First Guaranty had previously established an internal guidance limit of approximately $200.0 million for its hotel and hospitality portfolio. First Guaranty had $377.3 million in loans related to our Texas markets at March 31, 2024 which was an increase of $1.6 million or 0.4% from $375.7 million at December 31, 2023. First Guaranty anticipates additional growth opportunities in Texas. First Guaranty had $277.2 million in loans related to our new Mideast markets in Kentucky and West Virginia at March 31, 2024 compared to $278.1 million at December 31, 2023. Syndicated loans at March 31, 2024 were $58.5 million, of which $24.4 million were shared national credits. Syndicated loans decreased $18.2 million from $76.7 million at December 31, 2023.

As of March 31, 2024, 76.8% of our loan portfolio was secured by real estate. The largest portion of our loan portfolio, at 41.1% as of March 31, 2024, was non-farm non-residential loans secured by real estate. Approximately 48.1% of the loan portfolio was based on a floating rate tied to the prime rate, Secured Overnight Financing Rate ("SOFR"), or Treasury rates as of March 31, 2024. 52.5% of the loan portfolio is scheduled to mature within five years from March 31, 2024.

Commercial real estate (“CRE”) has received increased regulatory scrutiny in recent quarters due to valuation concerns associated with the increase in market interest rates and the impact of the COVID-19 pandemic. First Guaranty has utilized enhanced risk management practices for CRE concentration analysis for several years. First Guaranty Bank’s credit department conducts an annual stress test for CRE related loans that is presented to the Bank’s board of directors. The stress test analyses the impact of changes in interest rates and cash flow on loan customers with credit exposures of $2.5 million or greater. First Guaranty generally requires personal guarantees on CRE loans. First Guaranty generally approves CRE loans with loan-to-values of 80% or less. First Guaranty also generally requires for construction related CRE loans that the borrower provides their equity contribution upfront before loan funds are advanced.

First Guaranty has diversified its CRE portfolio across both industries and geographic location. The following is a summary of the largest CRE related loans associated with hotel and motels, office properties, apartment complexes, healthcare related properties, and properties under construction as of March 31, 2024. First Guaranty does not finance standalone multi-story office buildings in major metropolitan areas. The largest CRE loan secured by a hotel or motel totaled $20.1 million. The property is a flagged hotel located in Texas. The largest CRE loan secured by an office related property totaled $21.6 million and is located in West Virginia. The largest CRE loan secured by an apartment complex totaled $40.9 million and was secured by a property located in Louisiana. This loan was under construction as of December 31, 2023 and converted to permanent financing at March 31, 2024. First Guaranty also has a $25.9 million apartment complex that is located in Texas. The largest healthcare related loan is a $30.3 million property secured by an assisted living center located in Alabama. The largest CRE loan under construction totaled $29.9 million for land development and is secured by a property located in Texas.

The increase in classified assets at March 31, 2024 as compared to December 31, 2023 was due to a $0.9 million increase in substandard loans offset by a $0.6 million decrease in doubtful loans. The increase in substandard loans was primarily the result of the downgrade of one $1.7 million lease loan relationship from pass to substandard during the first quarter of 2024, offset by loans that were upgraded to special mention status. The decrease in doubtful loans was primarily the result of the payoff of a $0.4 million one-to four family loan classified as doubtful during the first quarter of 2024. Special mention loans decreased by $13.8 million in 2024. The decrease in special mention loans was primarily the result of the upgrade of one commercial lease loan relationship from special mention to pass status totaling $13.2 million.

Net loans are reduced by the allowance for credit losses which totaled $31.5 million at March 31, 2024 and $30.9 million at December 31, 2023. First Guaranty adopted ASC 326 effective January 1, 2023 and recorded a cumulative adjustment to the allowance of $7.0 million. Loan charge-offs were $2.3 million during the first three months of 2024 and $1.0 million during the same period in 2023. Recoveries totaled $0.3 million during the first three months of 2024 and $0.5 million during the same period in 2023. The provision for credit losses totaled $2.3 million for the first three months of 2024 and $0.3 million for the same period in 2023. See Note 4 of the Notes to Consolidated Financial Statements for more information on loans and Note 5 for more information on the allowance for credit losses.

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Investment Securities

Investment securities at March 31, 2024 totaled $358.7 million, a decrease of $45.5 million compared to $404.1 million at December 31, 2023. The portfolio consists of both available for sale (AFS) and held to maturity securities (HTM). The securities designated as held to maturity are agency and corporate debt securities that are part of First Guaranty’s investment strategy and public funds collateralization program. We purchase securities for our investment portfolio to provide a source of liquidity, to provide an appropriate return on funds invested, to manage interest rate risk and meet pledging requirements for public funds and borrowings.

The securities portfolio consisted principally of U.S. Government and Government agency securities, agency mortgage-backed securities, corporate debt securities and municipal bonds. U.S. government agencies consist of FHLB, Federal Farm Credit Bank ("FFCB"), Freddie Mac and Fannie Mae obligations. Mortgage-backed securities that we purchase are issued by Freddie Mac and Fannie Mae. Management monitors the securities portfolio for both credit and interest rate risk. We generally limit the purchase of corporate securities to individual issuers to manage concentration and credit risk. Corporate securities generally have a maturity of 10 years or less. U.S. Government securities consist of U.S. Treasury securities that have maturities of less than two years. Government agency securities generally have maturities of 15 years or less. Agency mortgage-backed securities have stated final maturities of 15 to 20 years.

Our available for sale securities portfolio totaled $37.8 million at March 31, 2024, a decrease of $45.7 million, or 54.8%, compared to $83.5 million at December 31, 2023. The decrease was primarily due to the maturity of U.S. Treasury securities.

Our held to maturity securities portfolio totaled $320.9 million at March 31, 2024, an increase of $0.3 million, or 0.1%, compared to $320.6 million at December 31, 2023.

At March 31, 2024, $0.8 million, or 0.2%, of the securities portfolio was scheduled to mature in less than one year. $7.5 million, or 2.1%, of the securities portfolio, not including collateralized mortgage obligations and mortgage-backed securities, were scheduled to mature between one and five years. The majority of these securities were corporate bonds. $135.5 million, or 37.8%, of the securities portfolio, not including collateralized mortgage obligations and mortgage-backed securities, were scheduled to mature between five and ten years. Securities, not including collateralized mortgage obligations and mortgage-backed securities, with contractual maturity dates over 10 years totaled $210.0 million, or 58.6%, of the total securities portfolio at March 31, 2024. The average maturity of the securities portfolio is affected by call options that may be exercised by the issuer of the securities and are influenced by market interest rates. Prepayments of mortgages that collateralize mortgage-backed securities also affect the maturity of the securities portfolio. Based on internal forecasts as of March 31, 2024, management believes that the securities portfolio has a forecasted weighted average life of approximately 11.28 years based on the current interest rate environment. The portfolio had an estimated effective duration of 8.93 years at March 31, 2024.

There were no credit related impairment of available for sale securities during the three months ended March 31, 2024. The allowance for credit losses for held to maturity securities was $0.1 million at March 31, 2024 and December 31, 2023.

Nonperforming Assets

Non-performing assets consist of non-performing loans and other real-estate owned. Non-performing loans are those on which the accrual of interest has stopped or loans which are contractually 90 days past due on which interest continues to accrue. Loans are ordinarily placed on nonaccrual status when principal and interest is delinquent for 90 days or more. However, management may elect to continue the accrual when the asset is well secured and in the process of collection. It is our policy to discontinue the accrual of interest income on any loan for which we have reasonable doubt as to the payment of interest or principal. When a loan is placed on nonaccrual status, unpaid interest credited to income is reversed. Nonaccrual loans are returned to accrual status when the financial position of the borrower indicates there is no longer any reasonable doubt as to the payment of principal or interest and a reasonable payment performance period is observed (generally considered six months or longer). Other real estate owned consists of property acquired through formal foreclosure, in-substance foreclosure or by deed in lieu of foreclosure.

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The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated. 

(in thousands)	March 31, 2024			December 31, 2023
Nonaccrual loans:
Real Estate:
Construction and land development	$	598		$	530
Farmland	903			836
1- 4 family	8,157			6,985
Multifamily	537			537
Non-farm non-residential	9,733			9,740
Total Real Estate	19,928			18,628
Non-Real Estate:
Agricultural	1,658			1,369
Commercial and industrial	4,691			1,581
Commercial leases	1,799			1,799
Consumer and other	530			1,810
Total Non-Real Estate	8,678			6,559
Total nonaccrual loans	28,606			25,187
Loans 90 days and greater delinquent & accruing:
Real Estate:
Construction and land development	—			—
Farmland	—			—
1- 4 family	—			124
Multifamily	—			—
Non-farm non-residential	14,600			14,711
Total Real Estate	14,600			14,835
Non-Real Estate:
Agricultural	58			57
Commercial and industrial	—			395
Commercial leases	—			—
Consumer and other	—			—
Total Non-Real Estate	58			452
Total loans 90 days and greater delinquent & accruing	14,658			15,287
Total non-performing loans	43,264			40,474
Real Estate Owned:
Construction and land development	282			251
Farmland	—			—
1- 4 family	312			309
Multifamily	—			—
Non-farm non-residential	690			690
Total Real Estate Owned	1,284			1,250
Total non-performing assets	$	44,548		$	41,724
Non-performing assets to total loans	1.62		%	1.52		%
Non-performing assets to total assets	1.25		%	1.17		%
Non-performing loans to total loans	1.57		%	1.47		%
Nonaccrual loans to total loans	1.04		%	0.92		%
Allowance for credit losses to nonaccrual loans	109.94		%	122.79		%
Net loan charge-offs to average loans	0.29		%	0.17		%

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At March 31, 2024, nonperforming assets totaled $44.5 million, or 1.25% of total assets, compared to $41.7 million, or 1.17%, of total assets at December 31, 2023, which represented an increase of $2.8 million, or 6.8%. The increase in non-performing assets occurred primarily due to an increase in nonaccrual loans and other real estate owned, offset by a decrease in loans 90 days greater delinquent and still accruing. Nonperforming loans included loans previously classified as purchase credit deteriorated following the adoption of CECL.

Nonaccrual loans increased from $25.2 million at December 31, 2023 to $28.6 million at March 31, 2024. The increase in nonaccrual loans was concentrated primarily in commercial and industrial and one-to four family loans. Nonaccrual loans included $2.5 million in loans with a government guarantee. These are structured as net loss guarantees in which up to 90% of loss exposure is covered.

At March 31, 2024, loans 90 days or greater delinquent and still accruing totaled $14.7 million, a decrease of $0.6 million compared to $15.3 million at December 31, 2023. The decrease in loans 90 days or greater delinquent and still accruing was concentrated primarily in commercial and industrial, non-farm non-residential, and one-to four family.

Other real estate owned totaled $1.3 million at March 31, 2024 and December 31, 2023.

At March 31, 2024, our largest non-performing assets were comprised of the following nonaccrual loans and 90 days or greater delinquent and still accruing loans: (1) a non-farm non-residential loan that totaled $13.9 million; (2) a non-farm non-residential loan that totaled $4.7 million; (3) a $2.0 million loan relationship that is classified as purchased credit deteriorated; (4) a commercial lease loan that totaled $1.8 million; (5) a commercial and industrial loan that totaled $1.8 million; (6) a non-farm non-residential loan that totaled $1.3 million; (7) a non-farm non-residential loan that totaled $1.3 million.

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Allowance for Credit Losses

First Guaranty adopted FASB ASC Topic 326 “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments” Update No. 2016-13 (“ASU 2016-13”). ASU 2016-13 on January 1, 2023. ASU 2016-13, referred to as the Current Expected Credit Loss (“CECL”) standard, requires financial assets measured on an amortized cost basis, including loans and held-to-maturity debt securities, to be presented at an amount net of an allowance for credit losses, which reflects expected losses for the full life of the financial asset. Unfunded lending commitments are also within the scope of this topic. Under prior GAAP losses were not recognized until the occurrence of the loss was probable. See Recent Accounting Pronouncements for more information on the adoption of ASC 326.

The allowance for credit losses on loans is maintained to absorb potential losses in the loan portfolio. The allowance is increased by the provision for loan losses, offset by recoveries of previously charged-off loans and is decreased by loan charge-offs. The provision is a charge to current expense to provide for current expected loan losses and to maintain the allowance commensurate with management's evaluation of the risks inherent in the loan portfolio. Various factors are taken into consideration when determining the amount of the provision and the adequacy of the allowance. These factors include but are not limited to:

•past due and non-performing assets;

•specific internal analysis of loans requiring special attention;

•the current level of regulatory classified and criticized assets and the associated risk factors with each;

•changes in underwriting standards or lending procedures and policies;

•charge-off and recovery practices;

•national and local economic and business conditions;

•nature and volume of loans;

•overall portfolio quality;

•adequacy of loan collateral;

•quality of loan review system and degree of oversight by our board of directors;

•competition and legal and regulatory requirements on borrowers;

•examinations of the loan portfolio by federal and state regulatory agencies and examinations; and

•review by our internal loan review department and independent accountants.

The data collected from all sources in determining the adequacy of the allowance is evaluated on a regular basis by management with regard to current national and local economic trends, prior loss history, underlying collateral values, credit concentrations and industry risks. An estimate of potential loss on specific loans is developed in conjunction with an overall risk evaluation of the total loan portfolio. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as new information becomes available. 

The allowance consists of specific, general, and unallocated components. The specific component relates to loans that are classified as doubtful, substandard, or collateral dependent. For such loans that are also classified as collateral dependent, an allowance is established when the collateral value is lower than the carrying value of that loan. The general component covers non-classified loans and special mention loans and is based on historical loss experience for the past three years adjusted for qualitative factors described above. An unallocated component is maintained to cover uncertainties that could affect the estimate of probable losses.

The balance in the allowance for credit losses is principally influenced by the provision for loan losses, recoveries, and by net loan loss experience. Additions to the allowance are charged to the provision for credit losses. Losses are charged to the allowance as incurred and recoveries on losses previously charged to the allowance are credited to the allowance at the time recovery is collected.

The allowance for credit losses on loans was $31.5 million, or 1.14% of total loans, and 72.7% of nonperforming loans at March 31, 2024.

Comparing March 31, 2024 to December 31, 2023, there were changes within the specific components of the allowance balance.

A provision for credit losses of $2.3 million was made during the three months ended March 31, 2024 and $0.3 million for the same period in 2023. The $2.3 million provision made in 2024 included a $0.3 million negative provision for credit losses related to unfunded commitments. First Guaranty's unfunded commitments declined during the quarter which resulted in a reduced liability. The provisions made were taken to provide for current credit losses and to maintain the allowance proportionate to risks inherent in the loan portfolio.

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The loan portfolio factors in the first three months of 2024 that primarily affected the allocation of the allowance included the following:

•Construction and land development loans decreased during the first three months of 2024 due to loans converted to permanent financing. The allowance decrease related to this portfolio was due to a decline in the portfolio along with changes in the qualitative analysis of the portfolio related to economic conditions.

•One-to four-family residential loans increased $11.8 million during the first three months of 2024. The allowance decrease related to this portfolio was due to changes in the qualitative analysis of the portfolio.

•Multifamily loans increased during the first three months of 2024. The allowance related to this portfolio was increased due to the growth in the portfolio which increased by $46.2 million during the first three months of 2024.

•Non-farm non-residential loans increased by $87.7 million during the first three months of 2024. The allowance increase related to this portfolio was due primarily to growth in the portfolio.

•Commercial and industrial loans decreased during the first three months of 2024. The allowance increase related to this portfolio was due to the qualitative analysis of the portfolio.

•Commercial leases decreased during the first three months of 2024 from $285.4 million at December 31, 2023 to $253.0 million at March 31, 2024. The allowance decrease related to this portfolio was due to the reduction in this portfolio and due to changes in the qualitative analysis of the portfolio.

•Consumer and other loans decreased during the first three months of 2024. The increase in the related loan loss allowance balance was due primarily to qualitative analysis of the portfolio.

First Guaranty charged off $2.3 million in loan balances during the first three months of 2024. The details of the $2.3 million in charged-off loans were as follows:

1.First Guaranty charged off $1.4 million in consumer loans during the first quarter of 2024. The consumer loan charge offs included $0.9 million of loans secured by automobiles or equipment and $0.5 million in unsecured loans.

2.First Guaranty charged off $0.2 million on a commercial and industrial SBA loan relationship during the first quarter of 2024. This relationship had no remaining principal balance at March 31, 2024.

3.First Guaranty charged off $0.1 million on a commercial and industrial loan during the first quarter of 2024. This loan had no remaining principal balance at March 31, 2024.

4.Smaller loans and overdrawn deposit accounts comprised the remaining $0.6 million of charge-offs for the first three months of 2024.

Other information related to the allowance for credit losses is as follows: 

(in thousands)	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Loans:
Average outstanding balance	$	2,761,533	$	2,528,622
Balance at end of period	$	2,752,230	$	2,574,242
Allowance for Credit Losses:
Balance at beginning of year	$	30,926	$	23,518
Adoption of ASC 326	—		8,120
Charge-offs	(2,285)		(973)
Recoveries	255		489
Provision	2,554		314
Balance at end of period	$	31,450	$	31,468

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Deposits

Managing the mix and pricing the maturities of deposit liabilities is an important factor affecting our ability to maximize our net interest margin. The strategies used to manage interest-bearing deposit liabilities are designed to adjust as the interest rate environment changes. We regularly assess our funding needs, deposit pricing and interest rate outlooks. From December 31, 2023 to March 31, 2024, total deposits increased $54.8 million, or 1.8%, to $3.1 billion. Noninterest-bearing demand deposits decreased $27.6 million, or 6.2%, to $415.1 million at March 31, 2024. The decrease in noninterest-bearing demand deposits was primarily concentrated in individual and business noninterest-bearing demand deposits. Interest-bearing demand deposits increased $29.6 million, or 1.9%, to $1.6 billion at March 31, 2024. The increase in interest-bearing demand deposits was primarily concentrated in public funds interest-bearing demand deposits. Savings deposits increased $10.1 million, or 4.6%, to $229.1 million at March 31, 2024, primarily related to increases in business and individual savings deposits. Time deposits increased $42.7 million, or 5.2%, to $863.4 million at March 31, 2024, primarily due to increases in consumer and business time deposits.

Management will continue to evaluate and update our product mix and related technology in its efforts to attract additional customers. We currently offer a number of deposit products that are competitively priced and designed to attract and retain customers with primary emphasis on noninterest-bearing deposits and other lower cost deposits.

As of March 31, 2024, the aggregate amount of outstanding certificates of deposit in amounts greater than $250,000 was approximately $179.2 million. At March 31, 2024, approximately $42.1 million of First Guaranty's certificates of deposit greater than $250,000 had a remaining term greater than one year.

The total amount of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) was estimated at $307.5 million at March 31, 2024. This total excludes public funds deposits that are collateralized by securities or FHLB letters of credit. The amount of uninsured deposits including collateralized public funds deposits was estimated at $924.2 million at March 31, 2024.

The following table sets forth the distribution of our time deposit accounts. 

(in thousands)	March 31, 2024
Time deposits of less than $100,000	$	388,735
Time deposits of $100,000 through $250,000	295,484
Time deposits of more than $250,000	179,189
Total Time Deposits	$	863,408

The following table sets forth the maturity of the time deposits greater than $250,000 at March 31, 2024.

 

(in thousands)	March 31, 2024
Three months or less	$	32,445
Three to six months	26,782
Six months to one year	77,862
One to three years	30,632
More than three years	11,468
Total Time Deposits greater than $250,000	$	179,189

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Public funds deposits totaled $1.2 billion at March 31, 2024 and December 31, 2023. Public funds time deposits totaled $50.2 million at March 31, 2024 compared to $50.9 million at December 31, 2023. Public funds deposits increased due to new balances from existing customers that was primarily attributed to seasonal fluctuations. First Guaranty has developed a program for the retention and management of public funds deposits. Since the end of 2012, First Guaranty has maintained public funds deposits in excess of $400.0 million. These deposits are from public entities such as school districts, hospital districts, sheriff departments and municipalities. The majority of these funds are under fiscal agency agreements with terms of three years or less. Deposits under fiscal agency agreements are generally stable but public entities may maintain the ability to negotiate term deposits on a specific basis including with other financial institutions. These deposits generally have stable balances as we maintain both operating accounts and time deposits for these entities. There is a seasonal component to public deposit levels associated with annual tax collections. Public funds will increase at the end of the year and during the first quarter. In addition to seasonal fluctuations, there are monthly fluctuations associated with internal payroll and short-term tax collection accounts for our public funds deposit accounts. Public funds deposit accounts are collateralized by FHLB letters of credit, by expanded reciprocal deposit insurance programs, by Louisiana municipal bonds and by eligible government and government agency securities such as those issued by the FHLB, FFCB, Fannie Mae, and Freddie Mac. First Guaranty continues to grow the proportion of its public funds portfolio that is collateralized by reciprocal deposit insurance as an alternative to pledging securities or utilizing FHLB letters of credit. First Guaranty initiated this strategy to more efficiently invest these deposits in higher yielding loans to improve the net interest margin and earnings. Total public funds collateralized by reciprocal deposit insurance programs decreased to $570.8 million at March 31, 2024 compared to $591.7 million at December 31, 2023.

The following table sets forth public funds as a percent of total deposits.

(in thousands except for %)	March 31, 2024			December 31, 2023
Public Funds:
Noninterest-bearing Demand	$	6,686		$	6,471
Interest-bearing Demand	1,137,084			1,090,527
Savings	46,833			46,606
Time	50,229			50,934
Total Public Funds	$	1,240,832		$	1,194,538
Total Deposits	$	3,063,876		$	3,009,094
Total Public Funds as a percent of Total Deposits	40.5		%	39.7		%

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Borrowings

First Guaranty maintains borrowing relationships with other financial institutions as well as the Federal Home Loan Bank on a short and long-term basis to meet liquidity needs. First Guaranty had $6.8 million in short-term borrowings outstanding at March 31, 2024 compared to $66.3 million at December 31, 2023. The short-term borrowings at March 31, 2024 were comprised of repurchase agreements of $6.8 million. The short-term borrowings outstanding at December 31, 2023 were comprised of short-term Federal Home Loan Bank advances of $50.0 million, a line of credit of $20.0 million with an outstanding balance of $10.0 million and repurchase agreements of $6.3 million. First Guaranty had available lines of credit of $20.0 million, with $0 outstanding at March 31, 2024.

First Guaranty had long-term borrowings from the FHLB that totaled $155.0 million at March 31, 2024. First Guaranty converted previous short-term floating rate borrowings from the FHLB into long-term lower fixed rate borrowings in order to reduce interest expense. First Guaranty has a $20.0 million FHLB advance that matures in the first quarter of 2025, a $100.0 million FHLB advance that matures in the second quarter of 2027, and $35.0 million FHLB advance that matures in the third quarter of 2027.

First Guaranty had senior long-term debt totaling $18.1 million as of March 31, 2024 and $39.1 million at December 31, 2023.

First Guaranty had subordinated debt totaling $44.7 million at March 31, 2024 and $15.0 million at December 31, 2023. The increase was due to the issuance in March of 2024 of $30.0 million of new subordinated debt.

First Guaranty had $553.3 million in Federal Home Loan Bank letters of credit as of March 31, 2024 compared to $513.3 million at December 31, 2023. Federal Home Loan Bank letters of credit are obtained primarily for collateralizing public deposits.

Total Shareholders' Equity

Total shareholders' equity increased to $250.3 million at March 31, 2024 from $249.6 million at December 31, 2023. The increase in shareholders' equity was principally the result of an increase of $0.3 million in surplus and a decrease of $0.6 million in accumulated other comprehensive loss, partially offset by a decrease of $0.3 million in retained earnings. The $0.3 million increase in surplus was due to common stock issued under the Equity Bonus Plan during the first quarter of 2024. The decrease in accumulated other comprehensive loss was primarily attributed to the decrease in unrealized losses on available for sale securities during the three months ended March 31, 2024. The $0.3 million decrease in retained earnings was primarily due to $2.0 million in cash dividends paid on shares of our common stock and $0.6 million in cash dividends paid on shares of our preferred stock, partially offset by net income of $2.3 million during the three months ended March 31, 2024.

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Results of Operations for the First Quarter Ended March 31, 2024 and 2023

Performance Summary

Three months ended March 31, 2024 compared to the three months ended March 31, 2023. Net income for the three months ended March 31, 2024 was $2.3 million, a decrease of $1.2 million, or 33.4%, from $3.5 million for the three months ended March 31, 2023. The decrease in net income for the three months ended March 31, 2024 as compared to the prior year period was the result of several factors. First Guaranty experienced an increase in interest income and a decrease in noninterest expense. This increased income was offset by an increase in interest expense, an increase in the provision for loan losses, and a decrease in noninterest income. Loan interest income increased due to the growth in First Guaranty's loan portfolio, repricing of existing loans to higher market rates, including loan fees recognized as an adjustment to yield. Securities interest income increased due to an increase in the average yield of the investment portfolio. Noninterest expense decreased primarily due to decreased personnel expenses, legal and professional fees, marketing, travel and lodging, and data processing. Factors that offset the increase in net income included an increase in interest expense due to increases in volume and market interest rates. The increase in the provision was related to changes within the portfolio. Noninterest income decreased primarily due to valuation changes related to the loan servicing assets. The loan servicing asset was valued higher in the first quarter of 2023 compared to the first quarter of 2024. Earnings per common share for the three months ended March 31, 2024 was $0.14 per common share, a decrease of 48.1% or $0.13 per common share from $0.27 per common share for the three months ended March 31, 2023.

Net Interest Income

Our operating results depend primarily on our net interest income, which is the difference between interest income earned on interest-earning assets, including loans and securities, and interest expense incurred on interest-bearing liabilities, including deposits and other borrowed funds. Interest rate fluctuations, as well as changes in the amount and type of interest-earning assets and interest-bearing liabilities, combine to affect net interest income. First Guaranty’s assets and liabilities are generally most affected by changes in the Federal Funds rate, SOFR rate, short term Treasury rates such as one month and three month Treasury bills, and longer term Treasury rates such as the U.S. ten year Treasury rate. Our net interest income is affected by changes in the amount and mix of interest-earning assets and interest-bearing liabilities. There may also be a time lag in the effect of interest rate changes on assets and liabilities. It is also affected by changes in yields earned on interest-earning assets and rates paid on interest-bearing deposits and other borrowed funds.

A financial institution's asset and liability structure is substantially different from that of a non-financial company, in that virtually all assets and liabilities are monetary in nature. Accordingly, changes in interest rates may have a significant impact on a financial institution's performance. The impact of interest rate changes depends on the sensitivity to the change of our interest-earning assets and interest-bearing liabilities. The effects of the changing interest rate environment in recent periods and our interest sensitivity position is discussed below.

Three months ended March 31, 2024 compared to the three months ended March 31, 2023. Net interest income for the three months ended March 31, 2024 and 2023 was $21.9 million and $22.3 million, respectively. The decrease in net interest income for the three months ended March 31, 2024 as compared to the prior year period was primarily due to an increase in the average balance of our total interest-bearing liabilities and an increase in the average rate of our total interest-bearing liabilities, partially offset by an increase in the average balance of our total interest-earning assets and an increase in the average yield of our total interest-earning assets. For the three months ended March 31, 2024, the average balance of our total interest-bearing liabilities increased by $469.3 million to $2.8 billion primarily due to growth in interest-bearing deposits and borrowings. The average rate of our total interest-bearing liabilities increased by 114 basis points to 4.38% for the three months ended March 31, 2024 from 3.24% for the three months ended March 31, 2023. The rise in market interest rates, particularly associated with Treasury rates, contributed to the increase in our liabilities cost. The primary source of the increase in liabilities cost was associated with interest bearing demand deposits for public funds that are primarily indexed to Treasury rates. For the three months ended March 31, 2024, the average balance of our total interest-earning assets increased by $387.9 million to $3.4 billion due to strong growth in our loan portfolio. The average yield of our interest-earning assets increased by 70 basis points to 6.23% for the three months ended March 31, 2024 from 5.53% for the three months ended March 31, 2023 due to an improved mix of higher yielding assets. As a result, our net interest rate spread decreased 44 basis points to 1.85% for the three months ended March 31, 2024 from 2.29% for the three months ended March 31, 2023. Our net interest margin decreased 41 basis points to 2.58% for the three months ended March 31, 2024 from 2.99% for the three months ended March 31, 2023.

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Interest Income

Three months ended March 31, 2024 compared to the three months ended March 31, 2023. Interest income increased $11.6 million, or 28.1%, to $52.9 million for the three months ended March 31, 2024 as compared to the prior year period. First Guaranty's loan portfolio expanded during the first quarter of 2024 due to growth associated with our loan originations and existing loans repriced to higher market rates. These factors contributed to the increase in interest income as the average balance of our total interest-earning assets, primarily associated with loans, increased, and the average yield of interest-earning assets increased. The average balance of our interest-earning assets increased $387.9 million to $3.4 billion for the three months ended March 31, 2024 as compared to the prior year. The average yield of interest-earning assets increased by 70 basis points to 6.23% for the three months ended March 31, 2024 compared to 5.53% for the three months ended March 31, 2023.

Interest income on securities increased $127,000 to $2.5 million for the three months ended March 31, 2024 as compared to the prior year period primarily as a result of an increase in average yield of securities. The average yield on securities increased 31 basis points to 2.58% for the three months ended March 31, 2024 compared to 2.27% for the three months ended March 31, 2023 due to the decrease in lower yielding Treasury securities that matured in 2023. The average balance of securities decreased $34.4 million to $392.2 million for the three months ended March 31, 2024 from $426.6 million for the three months ended March 31, 2023 primarily due to a decrease in the average balance of our U.S. Treasuries securities portfolio compared to the prior year.

Interest income on loans increased $8.8 million or 23.0%, to $46.9 million for the three months ended March 31, 2024 as compared to the prior year period as a result of an increase in the average balance and average yield of loans. The average balance of loans (excluding loans held for sale) increased by $232.9 million to $2.8 billion for the three months ended March 31, 2024 from $2.5 billion for the three months ended March 31, 2023 as a result of new loan originations. The average yield on loans (excluding loans held for sale) increased by 71 basis points to 6.83% for the three months ended March 31, 2024 from 6.12% for the three months ended March 31, 2023 due to the improved mix of loans along with an increase in market interest rates.

Interest Expense

Three months ended March 31, 2024 compared to the three months ended March 31, 2023. Interest expense increased $12.0 million, or 63.2%, to $31.0 million for the three months ended March 31, 2024 from $19.0 million for the three months ended March 31, 2023 due primarily to an increase in market interest rates and due to an increase in the average balance of interest-bearing liabilities. The average rate of interest-bearing demand deposits was 4.43% for the three months ended March 31, 2024 and 3.56% for the three months ended March 31, 2023. The increase in market interest rates, particularly U.S. Treasury rates, contributed to the increase in rates paid on interest-bearing demand deposits. The largest concentration of interest-bearing demand deposits is associated with public funds deposits that are primarily indexed to Treasury rates. Treasury rates increased as the Federal Reserve increased rates to address increased inflation in the U.S. economy. The average rate of time deposits increased 195 basis points during the three months ended March 31, 2024 to 4.53% as compared to the prior year period. The increase in the average rate of time deposits was due to changes in market rates. The average balance of interest-bearing liabilities increased by $469.3 million during the three months ended March 31, 2024 to $2.8 billion as compared to the prior year period. This increase was a result of a $52.7 million increase in the average balance of interest-bearing demand deposits, a $289.6 million increase in the average balance of time deposits, and a $107.4 million increase in the average balance of borrowings, and a $19.7 million increase in the average balance of savings deposits.

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The following tables set forth average balance sheets, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments were made, as the effect thereof was not material. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances, but have been reflected in the tables as loans carrying a zero yield. The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.

The net interest income yield shown below in the average balance sheet is calculated by dividing net interest income by average interest-earning assets and is a measure of the efficiency of the earnings from balance sheet activities. It is affected by changes in the difference between interest on interest-earning assets and interest-bearing liabilities and the percentage of interest-earning assets funded by interest-bearing liabilities. 

	Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
(in thousands except for %)	Average Balance		Interest		Yield/Rate (5)		Average Balance		Interest		Yield/Rate (5)
Assets
Interest-earning assets:
Interest-earning deposits with banks	$	261,981	$	3,476	5.34	%	$	72,506	$	751	4.20	%
Securities (including FHLB stock)	392,214		2,514		2.58	%	426,625		2,387		2.27	%
Federal funds sold	329		—		—	%	431		—		—	%
Loans held for sale	—		—		—	%	—		—		—	%
Loans, net of unearned income(6)	2,761,533		46,918		6.83	%	2,528,622		38,149		6.12	%
Total interest-earning assets	3,416,057		$	52,908	6.23	%	3,028,184		$	41,287	5.53	%
Noninterest-earning assets:
Cash and due from banks	19,036						19,269
Premises and equipment, net	70,101						58,152
Other assets	27,836						26,737
Total Assets	$	3,533,030					$	3,132,342
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits	$	1,540,763	$	16,976	4.43	%	$	1,488,105	$	13,049	3.56	%
Savings deposits	223,959		1,227		2.20	%	204,271		579		1.15	%
Time deposits	850,712		9,572		4.53	%	561,154		3,576		2.58	%
Borrowings	228,157		3,212		5.66	%	120,803		1,782		5.98	%
Total interest-bearing liabilities	2,843,591		$	30,987	4.38	%	2,374,333		$	18,986	3.24	%
Noninterest-bearing liabilities:
Demand deposits	419,916						510,302
Other	17,174						12,749
Total Liabilities	3,280,681						2,897,384
Shareholders' equity	252,349						234,958
Total Liabilities and Shareholders' Equity	$	3,533,030					$	3,132,342
Net interest income			$	21,921					$	22,301
Net interest rate spread (1)					1.85	%					2.29	%
Net interest-earning assets (2)	$	572,466					$	653,851
Net interest margin (3), (4)					2.58	%					2.99	%
Average interest-earning assets to interest-bearing liabilities					120.13	%					127.54	%

(1)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(2)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(3)Net interest margin represents net interest income divided by average total interest-earning assets.

(4)The tax adjusted net interest margin was 2.58% and 2.99% for the above periods ended March 31, 2024 and 2023, respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended March 31, 2024 and 2023, respectively.

(5)Annualized.

(6)Includes loan fees of $2.0 million and $1.4 million or the above periods ended March 31, 2024 and 2023, respectively.

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Provision for Credit and Loan Losses

A provision for credit and loan losses is a charge to income in an amount that management believes is necessary to maintain an adequate allowance for credit losses. The provision is based on management's regular evaluation of current economic conditions in our specific markets as well as regionally and nationally, changes in the character and size of the loan portfolio, underlying collateral values securing loans, and other factors which deserve recognition in estimating loan losses. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available or as future events change.

For the three months ended March 31, 2024, the provision for credit losses was $2.3 million compared to $0.3 million for the same period in 2023. The $2.3 million provision included a $0.3 million negative provision for credit losses related to unfunded commitments. Total charge-offs were $2.3 million for the three months ended March 31, 2024 and $1.0 million for the same period in 2023. Charge-offs for the three months ended March 31, 2024 were concentrated in consumer auto and equipment secured loans, unsecured consumer loans, a commercial and industrial SBA loan relationship, and a commercial and industrial loan. Partially offsetting these charge-offs were recoveries that totaled $0.3 million for the three months ended March 31, 2024 and $0.5 million for the same period in 2023.

We believe that the allowance is adequate to cover current expected losses in the loan portfolio given the current economic conditions, and current expected net charge-offs and non-performing asset levels. Economic uncertainty may result in additional increases to the allowance for credit losses in future periods.

Noninterest Income

Our primary sources of recurring noninterest income are customer service fees, ATM and debit card fees, loan fees, gains on the sales of loans and available for sale securities and other service fees. Noninterest income does not include loan origination fees which are recognized over the life of the related loan as an adjustment to yield using the interest method.

Noninterest income totaled $2.3 million for the three months ended March 31, 2024, a decrease of $0.4 million from $2.7 million for the three months ended March 31, 2023. The decrease was primarily due to valuation changes related to the loan servicing assets. The loan servicing asset was valued higher in the first quarter of 2023 compared to the first quarter of 2024. Service charges, commissions and fees totaled $0.7 million for the three months ended March 31, 2024 compared to $0.8 million for the same period in 2023. ATM and debit card fees totaled $0.8 million for the three months ended March 31, 2024 and 2023. Net securities losses were $0 for the three months ended March 31, 2024 and 2023. Net gains on the sale of loans were $0 for the three months ended March 31, 2024 compared to $12,000 for the same period in 2023. Other noninterest income totaled $0.8 million for the three months ended March 31, 2024 compared to $1.1 million for the same period in 2023.

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Noninterest Expense

Noninterest expense includes salaries and employee benefits, occupancy and equipment expense and other types of expenses. Noninterest expense totaled $18.9 million for the three months ended March 31, 2024 and $20.2 million for the three months ended March 31, 2023. Salaries and benefits expense totaled $9.9 million for the three months ended March 31, 2024 and $10.0 million for the three months ended March 31, 2023. Occupancy and equipment expense totaled $2.3 million for the three months ended March 31, 2024 and $2.2 million for the same period in 2023. Other noninterest expense totaled $6.8 million for the three months ended March 31, 2024 and $8.0 million for the same period in 2023.

The following table presents, for the periods indicated, the major categories of other noninterest expense:

	Three Months Ended March 31,
(in thousands)	2024		2023
Other noninterest expense:
Legal and professional fees	$	972	$	2,175
Data processing	377		530
ATM fees	420		397
Marketing and public relations	332		528
Taxes - sales, capital, and franchise	605		560
Operating supplies	101		238
Software expense and amortization	1,253		1,240
Travel and lodging	228		400
Telephone	106		85
Amortization of core deposit intangibles	174		174
Donations	75		170
Net costs from other real estate and repossessions	204		27
Regulatory assessment	933		491
Other	983		945
Total other noninterest expense	$	6,763	$	7,960

Income Taxes

The amount of income tax expense is influenced by the amount of pre-tax income, the amount of tax-exempt income and the amount of other non-deductible expenses and the statutory tax rate. The provision for income taxes for the three months ended March 31, 2024 and 2023 was $0.7 million and $1.1 million, respectively. The provision for income taxes decreased due to a decrease in income before income taxes. First Guaranty's statutory tax rate was 21.0% for the three months ended March 31, 2024 and 2023.

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Liquidity and Capital Resources

Liquidity

Liquidity refers to the ability or flexibility to manage future cash flows to meet the needs of depositors and borrowers and fund operations. Maintaining appropriate levels of liquidity allows us to have sufficient funds available to meet customer demand for loans, withdrawal of deposit balances and maturities of deposits and other liabilities. Liquid assets include cash and due from banks, interest-earning demand deposits with banks, federal funds sold and available for sale investment securities.

First Guaranty's cash and cash equivalents totaled $332.1 million at March 31, 2024 compared to $286.5 million at December 31, 2023. Loans maturing within one year or less at March 31, 2024 totaled $393.8 million compared to $357.7 million at December 31, 2023. At March 31, 2024, time deposits maturing within one year or less totaled $508.5 million compared to $503.7 million at December 31, 2023. Time deposits maturing after one year through three years totaled $229.0 million at March 31, 2024 compared to $214.0 million at December 31, 2023. Time deposits maturing after three years totaled $125.9 million at March 31, 2024 compared to $103.0 million at December 31, 2023. First Guaranty's held to maturity ("HTM") securities portfolio at March 31, 2024 was $320.9 million, or 89.5% of the investment portfolio, compared to $320.6 million, or 79.3% at December 31, 2023. First Guaranty's available for sale ("AFS") securities portfolio was $37.8 million, or 10.5% of the investment portfolio as of March 31, 2024 compared to $83.5 million, or 20.7% of the investment portfolio at December 31, 2023. The majority of the AFS portfolio was comprised of corporate debt securities, municipal bonds and mortgage-backed securities.

First Guaranty maintained a net borrowing capacity at the Federal Home Loan Bank totaling $313.5 million and $259.6 million at March 31, 2024 and December 31, 2023, respectively with $155.0 million in FHLB advances outstanding at March 31, 2024 compared to $205.0 million at December 31, 2023, respectively. The advances outstanding at March 31, 2024 were comprised of long-term advances that totaled $155.0 million. The $20.0 million long-term FHLB advance matures in the first quarter of 2025, the $100.0 million FHLB long-term advance matures in the second quarter of 2027, and the $35.0 million FHLB long-term advance matures in the third quarter of 2027. The advances outstanding at December 31, 2023 were comprised of three long term advances totaling $155.0 million and two short-term advances that totaled $50.0 million. The change in borrowing capacity with the Federal Home Loan Bank was due to changes in the value that First Guaranty receives on pledged collateral and due to First Guaranty's usage of the line. First Guaranty has increasingly transitioned public funds deposits into reciprocal deposit programs for collateralization as an alternative to FHLB letters of credit. We also maintain federal funds lines of credit at various correspondent banks with borrowing capacity of $100.5 million and one revolving line of credit totaling $20.0 million secured by a pledge of the Bank's common stock, with no outstanding balance as of March 31, 2024. We also have a discount window line with the Federal Reserve Bank that totaled $247.1 million at March 31, 2024 which was an increase of $28.0 million compared to availability of $219.1 million at December 31, 2023. First Guaranty did not have any advances under this facility at March 31, 2024. Management believes there is sufficient liquidity to satisfy current operating needs.

Capital Resources

First Guaranty's capital position is reflected in shareholders' equity, subject to certain adjustments for regulatory purposes. Further, our capital base allows us to take advantage of business opportunities while maintaining the level of resources we deem appropriate to address business risks inherent in daily operations.

Total shareholders' equity increased to $250.3 million at March 31, 2024 from $249.6 million at December 31, 2023. The increase in shareholders' equity was principally the result of an increase of $0.3 million in surplus and a decrease of $0.6 million in accumulated other comprehensive loss, partially offset by a decrease of $0.3 million in retained earnings. The $0.3 million increase in surplus was due to common stock issued under the Equity Bonus Plan during the first quarter of 2024. The decrease in accumulated other comprehensive loss was primarily attributed to the decrease in unrealized losses on available for sale securities during the three months ended March 31, 2024. The $0.3 million decrease in retained earnings was primarily due to $2.0 million in cash dividends paid on shares of our common stock and $0.6 million in cash dividends paid on shares of our preferred stock, partially offset by net income of $2.3 million during the three months ended March 31, 2024.

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Regulatory Capital

Risk-based capital regulations adopted by the FDIC require banks to achieve and maintain specified ratios of capital to risk-weighted assets. Similar capital regulations apply to bank holding companies over $3.0 billion in assets. The risk-based capital rules are designed to measure "Tier 1" capital (consisting of common equity, retained earnings and a limited amount of qualifying perpetual preferred stock and trust preferred securities, net of goodwill and other intangible assets and accumulated other comprehensive income) and total capital in relation to the credit risk of both on- and off- balance sheet items. Under the guidelines, one of its risk weights is applied to the different on-balance sheet items. Off-balance sheet items, such as loan commitments, are also subject to risk weighting. Applicable bank holding companies and all banks must maintain a minimum total capital to total risk weighted assets ratio of 8.00%, at least half of which must be in the form of core or Tier 1 capital. These guidelines also specify that bank holding companies that are experiencing internal growth or making acquisitions will be expected to maintain capital positions substantially above the minimum supervisory levels.

In order to avoid limitations on distributions, including dividend payments, and certain discretionary bonus payments to executive officers, an institution must hold a capital conservation buffer above its minimum risk-based capital requirements. As of March 31, 2024, the Bank's capital conservation buffer was 3.39% exceeding the minimum of 2.50%. As of March 31, 2024, the First Guaranty's capital conservation buffer was 2.55% exceeding the minimum of 2.50%.

As a result of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the Federal Reserve Board has amended its small bank holding company and savings and loan holding company policy statement to provide that holding companies with consolidated assets of less than $3 billion that are (i) not engaged in significant nonbanking activities, (ii) do not conduct significant off-balance sheet activities, and (3) do not have a material amount of SEC-registered debt or equity securities, other than trust preferred securities, that contribute to an organization's complexity, are no longer subject to regulatory capital requirements, effective August 30, 2018. 

In addition, as a result of the legislation, the federal banking agencies have developed a "Community Bank Leverage Ratio" (the ratio of a bank's Tier 1 capital to average total consolidated assets) for financial institutions with assets of less than $10 billion.  A "qualifying community bank" that exceeds this ratio will be deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered "well capitalized" under Prompt Corrective Action statutes. The federal banking agencies may consider a financial institution's risk profile when evaluating whether it qualifies as a community bank for purposes of the capital ratio requirement. The federal banking agencies set the new Community Bank Leverage Ratio at 9%. Pursuant to the CARES Act, the federal banking agencies set the Community Bank Leverage Ratio at 8% beginning in the second quarter of 2020 through the end of 2020. Beginning in 2021, the Community Bank Leverage Ratio increased to 8.5% for the calendar year. Community banks will have until January 1, 2022, before the Community Bank Leverage Ratio requirement will return to 9%. A financial institution can elect to be subject to this new definition. As of March 31, 2024, the Bank did not elect to follow the Community Bank Leverage Ratio.

At March 31, 2024, we satisfied the minimum regulatory capital requirements and were well capitalized within the meaning of federal regulatory requirements. 

	"Well Capitalized Minimums"		As of March 31, 2024		As of December 31, 2023
Tier 1 Leverage Ratio
Bank	5.00	%	8.64	%	8.94	%
Consolidated	5.00	%	7.11	%	N/A
Tier 1 Risk-based Capital Ratio
Bank	8.00	%	10.40	%	10.31	%
Consolidated	8.00	%	8.55	%	N/A
Total Risk-based Capital Ratio
Bank	10.00	%	11.39	%	11.20	%
Consolidated	10.00	%	11.08	%	N/A
Common Equity Tier One Capital Ratio
Bank	6.50	%	10.40	%	10.31	%
Consolidated	6.50	%	7.42	%	N/A

As of March 31, 2024, First Guaranty is no longer considered a "small bank holding company", both the Bank and First Guaranty are required to maintain specified ratios of capital to risk-weighted assets.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

Asset/Liability Management and Market Risk

Our asset/liability management (ALM) process consists of quantifying, analyzing and controlling interest rate risk (IRR) to maintain reasonably stable net interest income levels under various interest rate environments. The principal objective of ALM is to maximize net interest income while operating within acceptable limits established for interest rate risk and to maintain adequate levels of liquidity.

The majority of our assets and liabilities are monetary in nature. Consequently, one of our most significant forms of market risk is interest rate risk, which is inherent in our lending and deposit-taking activities. Our assets, consisting primarily of loans secured by real estate and fixed rate securities in our investment portfolio, have longer maturities than our liabilities, consisting primarily of deposits. As a result, a principal part of our business strategy is to manage interest rate risk and reduce the exposure of our net interest income to changes in market interest rates. The board of directors of First Guaranty Bank has established two committees, the management asset liability committee and the board investment committee, to oversee the interest rate risk inherent in our assets and liabilities, for determining the level of risk that is appropriate given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the guidelines approved by the board of directors. The management asset liability committee is comprised of senior officers of the Bank and meets as needed to review our asset liability policies and interest rate risk position. The board ALCO investment committee is comprised of certain members of the board of directors of the Bank and meets monthly. The management asset liability committee provides a monthly report to the board ALCO investment committee.

The need for interest sensitivity gap management is most critical in times of rapid changes in overall interest rates. We generally seek to limit our exposure to interest rate fluctuations by maintaining a relatively balanced mix of rate sensitive assets and liabilities on a one-year time horizon and greater than one-year time horizon. Because of the significant impact on net interest margin from mismatches in repricing opportunities, we monitor the asset-liability mix periodically depending upon the management asset liability committee's assessment of current business conditions and the interest rate outlook. We maintain exposure to interest rate fluctuations within prudent levels using varying investment strategies. These strategies include, but are not limited to, frequent internal modeling of asset and liability values and behavior due to changes in interest rates. We monitor cash flow forecasts closely and evaluate the impact of both prepayments and extension risk.

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The following interest sensitivity analysis is one measurement of interest rate risk. This analysis reflects the contractual maturity characteristics of assets and liabilities over various time periods. This analysis does not factor in prepayments or interest rate floors on loans which may significantly change the report. This table includes nonaccrual loans in their respective maturity periods. The gap indicates whether more assets or liabilities are subject to repricing over a given time period. The interest sensitivity analysis at March 31, 2024 illustrated below reflects a liability-sensitive position with a negative cumulative gap on a one-year basis.

The interest spread and liability funding discussed below are directly related to changes in asset and liability mixes, volumes, maturities and repricing opportunities for interest-earning assets and interest-bearing liabilities. Interest-sensitive assets and liabilities are those which are subject to repricing in the near term, including both floating or adjustable rate instruments and instruments approaching maturity. The interest sensitivity gap is the difference between total interest-sensitive assets and total interest-sensitive liabilities. Interest rates on our various asset and liability categories do not respond uniformly to changing market conditions. Interest rate risk is the degree to which interest rate fluctuations in the marketplace can affect net interest income.

 

	March 31, 2024
	Interest Sensitivity Within
(in thousands except for %)	3 Months Or Less			Over 3 Months thru 12 Months			Total One Year			Over One Year		Total
Earning Assets:
Loans (including loans held for sale)	$	768,426		$	284,474		$	1,052,900		$	1,699,330	$	2,752,230
Securities (including FHLB stock)	10,450			649			11,099			357,964		369,063
Federal Funds Sold	465			—			465			—		465
Other earning assets	318,982			—			318,982			—		318,982
Total earning assets	$	1,098,323		$	285,123		$	1,383,446		$	2,057,294	$	3,440,740
Source of Funds:
Interest-bearing accounts:
Demand deposits	$	1,556,257		$	—		$	1,556,257		$	—	$	1,556,257
Savings deposits	229,098			—			229,098			—		229,098
Time deposits	116,896			391,603			508,499			354,909		863,408
Short-term borrowings	—			—			—			6,796		6,796
Long-term borrowings	18,102			—			18,102			155,000		173,102
Junior subordinated debt	44,700			—			44,700			—		44,700
Noninterest-bearing, net	—			—			—			567,379		567,379
Total source of funds	$	1,965,053		$	391,603		$	2,356,656		$	1,084,084	$	3,440,740
Period gap	$	(866,730)		$	(106,480)		$	(973,210)		$	973,210
Cumulative gap	$	(866,730)		$	(973,210)		$	(973,210)		$	—
Cumulative gap as a percent of earning assets	(25.2)		%	(28.3)		%	(28.3)		%

-49-

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As defined by the Securities and Exchange Commission in Exchange Act Rules 13a-15(e) and 15d-15(e), a Company's "disclosure controls and procedures" means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within time periods specified in the Commission's rules and forms. First Guaranty maintains such controls designed to ensure this material information is communicated to Management, including the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), as appropriate, to allow timely decision regarding required disclosure.

Management, with the participation of the CEO and CFO, have evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q. Based on that evaluation, the CEO and CFO have concluded that the disclosure controls and procedures as of the end of the period covered by this quarterly report are effective. There were no changes in First Guaranty's internal control over financial reporting during the last fiscal quarter in the period covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, First Guaranty's internal control over financial reporting.

-50-

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

First Guaranty is subject to various legal proceedings in the normal course of its business. First Guaranty assesses its liabilities and contingencies in connection with outstanding legal proceedings. Where it is probable that First Guaranty will incur a loss and the amount of the loss can be reasonably estimated, First Guaranty records a liability in its consolidated financial statements. First Guaranty does not record a loss if the loss is not probable or the amount of the loss is not estimable. First Guaranty was a defendant in a lawsuit alleging overpayment on a loan related to a disputed interest rate. This lawsuit was settled in the first quarter of 2023 for $0.6 million. First Guaranty Bank is a defendant in a lawsuit alleging fault for a loss of funds by a customer related to fraud by a third party, with a possible loss range of $0.0 million to $1.5 million. The Bank denies the allegations and intends to vigorously defend against this lawsuit, which is in early stages, and no trial has been set. No accrued liability has been recorded related to this lawsuit. First Guaranty settled a case in the third quarter of 2021 for $1.1 million. A receivable for $0.9 million has been recorded for recovery by a claim against First Guaranty's insurer. In the opinion of management, neither First Guaranty nor First Guaranty Bank is currently involved in such legal proceedings, either individually or in the aggregate, that the resolution is expected to have a material adverse effect on First Guaranty’s consolidated results of operations, financial condition, or cash flows. However, one or more unfavorable outcomes in these ordinary claims or litigation against First Guaranty or First Guaranty Bank could have a material adverse effect for the period in which they are resolved. In addition, regardless of their merits or ultimate outcomes, such matters are costly, divert management’s attention, and may materially and adversely affect the reputation of First Guaranty and First Guaranty Bank, even if resolved favorably.

Item 1A. Risk Factors

There have been no material changes to our risk factors as disclosed in First Guaranty's Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a)As previously reported, on May 23, 2023, First Guaranty accepted binding subscription agreements with certain investors qualified as “accredited investors,” as such term is defined in Rule 501(a) of Regulation D (“Regulation D”) promulgated under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to which First Guaranty offered and sold shares of its common stock, $1.00 par value per share (the “Common Stock”), for an aggregate purchase price of $10 million. 714,286 shares of Common Stock were sold at the issuance price of $14.00 per share. The offer and sale of the Common Stock by First Guaranty was made in reliance upon the exemptions from registration available under Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D. The proceeds of the capital raise were used for general corporate purposes, including to support continued growth and to enhance regulatory capital ratios.

Also as previously reported, on December 19, 2023, First Guaranty completed a private placement of 1,000,000 shares of its common stock, $1.00 par value per share (the “Common Stock”) at $10.00 per share for aggregate offering proceeds of $10,000,000. The offer and sale of the Common Stock by First Guaranty was made to “accredited investors” in reliance upon the exemptions from registration available under Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D. The proceeds of the private placement were used for general corporate purposes, including to support continued growth and to enhance regulatory capital ratios.

(b)Not applicable.

(c)Not applicable.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

(a)Not applicable.

(b)Not applicable.

(c)Not applicable.

-51-

Item 6.     Exhibits

 The following exhibits are either filed as part of this report or are incorporated herein by reference.

 

Exhibit Number	Exhibit
3.1	Restated Articles of Incorporation of First Guaranty Bancshares, Inc. (1)
3.2	Articles of Amendment to the Restated Articles of Incorporation of First Guaranty Bancshares, Inc. (2)
3.3	Articles of Amendment to the Restated Articles of Incorporation of First Guaranty Bancshares, Inc. (3).
3.4	Bylaws of First Guaranty Bancshares, Inc. (4)
3.5	Amendment to Bylaws of First Guaranty Bancshares, Inc. (5)
4.1	Form of Common Stock Certificate of First Guaranty Bancshares, Inc. (6)
4.2	Subordinated Note, dated as of June 21, 2022, by and between First Guaranty Bancshares, Inc. and Edgar Ray Smith, III. (7)
4.2	Subordinated Note, dated as of March 28, 2024, by and between First Guaranty Bancshares, Inc. and Smith & Tate Investments L.L.C. (17)
4.3	Description of Common Stock. (8)
4.4	Preferred Stock Specimen Certificate (9)
4.5	Description of Preferred Stock. (10)
4.6	Deposit Agreement, dated as of April 27, 2021, by and between First Guaranty Bancshares, Inc. and Zions Bancorporation, National Association, and the holders from time to time of the depositary receipts described herein (11)
4.7	Form of Depositary Receipt representing Depositary Shares (11)
10.1	Subordinated Note Purchase Agreement, dated as of June 21, 2022, by and between First Guaranty Bancshares, Inc. and Edgar Ray Smith, III (7)
10.1	Subordinated Note Purchase Agreement, dated as of March 28, 2024, by and between First Guaranty Bancshares, Inc. and Smith & Tate Investments, L.L.C. (17)
10.1	Loan Agreement, dated as of October 5, 2023, by and between First Guaranty Bancshares, Inc. and Summit Community Bank, Inc. (13)
10.2	Promissory Note (Term Loan) issued to Summit Community Bank, Inc. on October 5, 2023. (14)
10.3	Promissory Note (Line of Credit) issued to Summit Community Bank, Inc. on October 5, 2023. (15)
10.4*	Stock Pledge and Security Agreement, dated as of October 5, 2023, by First Guaranty Bancshares, Inc. in favor of Summit Community Bank, Inc. (16)
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.SCH	XBRL Taxonomy Extension Schema.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase.
101.DEF	XBRL Taxonomy Extension Definition Linkbase.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase.
101.LAB	XBRL Taxonomy Extension Label Linkbase.
101.INS	XBRL Instance Document.

(1)Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K12G3 filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on August 2, 2007.

(2)Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on September 23, 2011.

(3)Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on April 27, 2021.

(4)Incorporated by reference to Exhibit 3.2 of the Current Report on Form 8-K12G3 filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on August 2, 2007.

(5)Incorporated by reference to Exhibit 3.3 of the Current Report on Form 8-K12G3 filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on August 2, 2007.

(6)Incorporated by reference to Exhibit 4 of the Current Report on Form 8-K12G3 filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on August 2, 2007.

(7)Incorporated by reference to Exhibit 4.1 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on June 23, 2022.

(8)Incorporated by reference to Exhibit 4.3 of the Annual Report on Form 10-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on March 16, 2023.

(9)Incorporated by reference to Exhibit 4.1 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on April 27, 2021.

-52-

(10)Incorporated by reference to Exhibit 4.5 of the Annual Report on Form 10-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on March 16, 2023.

(11)Incorporated by reference to Exhibit 4.2 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on April 27, 2021.

(12)Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on July 10, 2023.

(13)Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on October 12, 2023.

(14)Incorporated by reference to Exhibit 10.2 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on October 12, 2023.

(15)Incorporated by reference to Exhibit 10.3 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on October 12, 2023.

(16)Incorporated by reference to Exhibit 10.4 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on October 12, 2023.

(17)Incorporated by reference to Exhibit 4.2 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc . with the Securities and Exchange Commission on April 3, 2024.

* Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule will be furnished supplementally to the SEC upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended, for any document so furnished.

-53-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, First Guaranty has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FIRST GUARANTY BANCSHARES, INC.

 

Date: May 10, 2024	By: /s/ Alton B. Lewis
	Alton B. Lewis
	Principal Executive Officer
Date: May 10, 2024	By: /s/ Eric J. Dosch
	Eric J. Dosch
	Principal Financial Officer
	Secretary and Treasurer

-54-

EX-31.1

EX-31.1 2 exhibit31-1.htm CERTIFICATION OF CHIEF EXECUTIVE OFFICER

EXHIBIT 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Alton B. Lewis, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of First Guaranty Bancshares, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

5.The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves Management or other employees who have a significant role in the registrant's internal control over financial reporting.

May 10, 2024

/s/ Alton B. Lewis

Alton B. Lewis

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

EX-31.2 3 exhibit31-2.htm CERTIFICATION OF CHIEF FINANCIAL OFFICER

EXHIBIT 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Eric J. Dosch, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of First Guaranty Bancshares, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

5.The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves Management or other employees who have a significant role in the registrant's internal control over financial reporting.

May 10, 2024

/s/ Eric J. Dosch

Eric J. Dosch

Chief Financial Officer,

Secretary and Treasurer

(Principal Financial & Accounting Officer)

EX-32.1

EX-32.1 4 exhibit 32-1.htm CERTIFICATION OF CHIEF EXECUTIVE OFFICER

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of First Guaranty Bancshares, Inc. (the "Company") on Form 10-Q as of and for the fiscal period ended March 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Alton B. Lewis, Chief Executive Officer of the Company, certify that to the best of my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 10, 2024

/s/ Alton B. Lewis

Alton B. Lewis

Chief Executive Officer

(Principal Executive Officer)

EX-32.2

EX-32.2 5 exhibit32-2.htm CERTIFICATION OF CHIEF FINANCIAL OFFICER

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of First Guaranty Bancshares, Inc. (the "Company") on Form 10-Q as of and for the fiscal period ended March 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Eric J. Dosch, Chief Financial Officer of the Company, certify that to the best of my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 10, 2024

/s/ Eric J. Dosch

Eric J. Dosch

Chief Financial Officer

Secretary and Treasurer

(Principal Financial & Accounting Officer)

XML

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 09, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-37621
Entity Registrant Name	FIRST GUARANTY BANCSHARES, INC.
Entity Incorporation, State or Country Code	LA
Entity Tax Identification Number	26-0513559
Entity Address, Address Line One	400 East Thomas Street
Entity Address, City or Town	Hammond,
Entity Address, State or Province	LA
Entity Address, Postal Zip Code	70401
City Area Code	(985)
Local Phone Number	345-7685
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		12,504,717
Entity Central Index Key	0001408534
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $1 par value
Trading Symbol	FGBI
Security Exchange Name	NASDAQ
Noncumulative Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Depository Shares (each representing a 1/40th interest in a share of 6.75% Series A Fixed-Rate Non-Cumulative perpetual preferred stock)
Trading Symbol	FGBIP
Security Exchange Name	NASDAQ

XML

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Cash and cash equivalents:
Cash and due from banks	$ 331,592	$ 286,114
Federal funds sold	465	341
Cash and cash equivalents	332,057	286,455
Investment securities:
Available for sale, at fair value	37,752	83,485
Held to maturity, at cost and net of allowance for credit losses of $80 (estimated fair value of $251,627 and $253,584 respectively)	320,901	320,638
Investment securities	358,653	404,123
Federal Home Loan Bank stock, at cost	10,410	13,390
Loans held for sale	0	0
Loans, net of unearned income	2,752,230	2,748,708
Less: allowance for credit losses	31,450	30,926
Net loans	2,720,780	2,717,782
Premises and equipment, net	70,646	69,792
Goodwill	12,900	12,900
Intangible assets, net	4,088	4,298
Other real estate, net	1,284	1,250
Accrued interest receivable	17,339	15,713
Other assets	27,634	27,069
Total Assets	3,555,791	3,552,772
Deposits:
Noninterest-bearing demand	415,113	442,755
Interest-bearing demand	1,556,257	1,526,628
Savings	229,098	218,986
Time	863,408	820,725
Total deposits	3,063,876	3,009,094
Short-term advances from Federal Home Loan Bank	0	50,000
Short-term borrowings	0	10,000
Repurchase agreements	6,834	6,297
Accrued interest payable	10,182	11,807
Long-term advances from Federal Home Loan Bank	155,000	155,000
Senior long-term debt	18,102	39,099
Junior subordinated debentures	44,700	15,000
Other liabilities	6,777	6,844
Total Liabilities	3,305,471	3,303,141
Preferred stock, Series A - $1,000 par value - 100,000 shares authorized
Non-cumulative perpetual; 34,500 shares issued and outstanding	33,058	33,058
Common stock, $1 par value - 100,600,000 shares authorized; 12,504,717 and 12,475,424 shares issued and outstanding	12,505	12,475
Surplus	149,389	149,085
Retained earnings	67,699	67,972
Accumulated other comprehensive (loss) income	(12,331)	(12,959)
Total Shareholders' Equity	250,320	249,631
Total Liabilities and Shareholders' Equity	$ 3,555,791	$ 3,552,772

XML

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Held to maturity, allowance for credit losses	$ 80	$ 80
Securities, held for maturity	$ 251,627	$ 253,584
Preferred stock, par value (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, shares authorized (in shares)	100,000	100,000
Preferred stock, shares issued (in shares)	34,500	34,500
Preferred stock, shares outstanding (in shares)	34,500	34,500
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	100,600,000	100,600,000
Common stock, shares, issued (in shares)	12,504,717	12,504,717
Common stock, shares, outstanding (in shares)	12,475,424	12,475,424

XML

CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Interest Income:
Loans (including fees)	$ 46,918	$ 38,149
Deposits with other banks	3,476	751
Securities (including FHLB stock)	2,514	2,387
Total Interest Income	52,908	41,287
Interest Expense:
Demand deposits	16,976	13,049
Savings deposits	1,227	579
Time deposits	9,572	3,576
Borrowings	3,212	1,782
Total Interest Expense	30,987	18,986
Net Interest Income	21,921	22,301
Less: Provision for credit losses	2,304	314
Net Interest Income after Provision for Credit Losses	19,617	21,987
Noninterest Income:
Service charges, commissions and fees	733	785
ATM and debit card fees	764	825
Net gains on securities	0	0
Net gains on sale of loans	0	12
Other	811	1,082
Total Noninterest Income	2,308	2,704
Noninterest Expense:
Salaries and employee benefits	9,900	10,004
Occupancy and equipment expense	2,271	2,202
Other	6,763	7,960
Total Noninterest Expense	18,934	20,166
Income Before Income Taxes	2,991	4,525
Less: Provision for income taxes	681	1,057
Net Income	2,310	3,468
Less: Preferred stock dividends	582	582
Net Income Available to Common Shareholders	$ 1,728	$ 2,886
Per Common Share:
Earnings (in dollars per share)	$ 0.14	$ 0.27
Cash dividends paid (in dollars per share)	$ 0.16	$ 0.16
Weighted Average Common Shares Outstanding (in shares)	12,489,910	10,716,796

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net Income	$ 2,310	$ 3,468
Unrealized (losses) gains on securities:
Unrealized holding gains arising during the period	795	524
Reclassification adjustments for (gains) losses included in net income	0	0
Change in unrealized gains on securities	795	524
Tax impact	(167)	(110)
Other comprehensive income	628	414
Comprehensive Income	$ 2,938	$ 3,882

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Total	Cumulative effect of adoption of ASC Topic 326, net of tax	Preferred Stock $1,000 Par	Common Stock $1 Par	Surplus	Retained Earnings	Retained Earnings Cumulative effect of adoption of ASC Topic 326, net of tax	Accumulated Other Comprehensive Income/(Loss)
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]
Beginning balance at Dec. 31, 2022	$ 234,991	$ (7,900)	$ 33,058	$ 10,717	$ 130,093	$ 76,351	$ (7,900)	$ (15,228)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	3,468					3,468
Other comprehensive income (loss)	414							414
Preferred stock dividends	(582)					(582)
Cash dividends on common stock	(1,715)					(1,715)
Ending balance at Mar. 31, 2023	228,676		33,058	10,717	130,093	69,622		(14,814)
Beginning balance at Dec. 31, 2023	249,631		33,058	12,475	149,085	67,972		(12,959)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,310					2,310
Common Stock issued under Equity Bonus Plan, 29,293 shares	334			30	304
Other comprehensive income (loss)	628							628
Preferred stock dividends	(582)					(582)
Cash dividends on common stock	(2,001)					(2,001)
Ending balance at Mar. 31, 2024	$ 250,320		$ 33,058	$ 12,505	$ 149,389	$ 67,699		$ (12,331)

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) (Parenthetical)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Statement of Stockholders' Equity [Abstract]
Preferred stock, par value (in dollars per share)	$ 1,000
Common stock, par value (in dollars per share)	$ 1
Common stock issued (in shares) | shares	29,293
Cash dividends paid (in dollars per share)	$ 0.16

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash Flows From Operating Activities
Net income	$ 2,310	$ 3,468
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	2,304	314
Depreciation and amortization	1,001	1,011
Amortization/Accretion of investments	127	267
(Gain) loss on sale/call of securities	0	0
(Gain) loss on sale of assets	(6)	(23)
Repossessed asset write downs, gains and losses on dispositions	101	0
FHLB stock dividends	(202)	(62)
Change in other assets and liabilities, net	(3,639)	(943)
Net Cash Provided By Operating Activities	1,996	4,032
Cash Flows From Investing Activities
Proceeds from maturities and calls of HTM securities	0	0
Proceeds from maturities, calls and sales of AFS securities	50,339	50,373
Funds invested in AFS securities	(4,200)	0
Funds invested in Federal Home Loan Bank stock	0	(358)
Proceeds from sale/redemption of Federal Home Loan Bank stock	3,182	2,425
Net increase in loans	(6,153)	(55,500)
Purchase of premises and equipment	(1,600)	(1,117)
Proceeds from sales of premises and equipment	6	11
Proceeds from sales of other real estate owned	269	0
Net Cash Provided by (Used In) Investing Activities	41,843	(4,166)
Cash Flows From Financing Activities
Net increase in deposits	54,782	138,796
Net (decrease) increase in federal funds purchased and short-term borrowings	(59,463)	(69,836)
Proceeds from long-term borrowings	0	20,000
Repayment of long-term borrowings	(21,007)	(813)
Proceeds from subordinated debentures	29,700	0
Proceeds from issuance of common stock	334	0
Dividends paid on preferred stock	(582)	(582)
Dividends paid on common stock	(2,001)	(1,715)
Net Cash Provided By Financing Activities	1,763	85,850
Net Increase (Decrease) In Cash and Cash Equivalents	45,602	85,716
Cash and Cash Equivalents at the Beginning of the Period	286,455	83,219
Cash and Cash Equivalents at the End of the Period	332,057	168,935
Noncash Activities:
Acquisition of real estate in settlement of loans	149	774
Transfer of securities from AFS to HTM	0	0
Cash Paid During The Period:
Interest on deposits and borrowed funds	32,612	18,667
Federal
Cash Paid During The Period:
Income taxes paid	0	0
State
Cash Paid During The Period:
Income taxes paid	$ 0	$ 0

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Basis of Presentation

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles. The consolidated financial statements and the footnotes of First Guaranty Bancshares, Inc. ("First Guaranty") thereto should be read in conjunction with the audited consolidated financial statements and note disclosures for First Guaranty previously filed with the Securities and Exchange Commission in First Guaranty's Annual Report on Form 10-K for the year ended December 31, 2023.

The consolidated financial statements include the accounts of First Guaranty Bancshares, Inc. and its wholly owned subsidiary First Guaranty Bank (the "Bank"). All significant intercompany balances and transactions have been eliminated in consolidation.

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of the consolidated financial statements. Those adjustments are of a normal recurring nature. The results of operations at March 31, 2024 and for the three month periods ended March 31, 2024 and 2023 are not necessarily indicative of the results expected for the full year or any other interim period. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for credit losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and the valuation of investment securities.

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2024

Accounting Standards Update and Change in Accounting Principle [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Accounting Standards Adopted in 2024

None.

Accounting Pronouncements Not Yet Adopted

ASU No. 2023-09, "Improvements to Tax Disclosures" ("ASU 2023-09") is intended to enhance the transparency and decision usefulness of income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. This update is effective for annual periods beginning after December 15, 2024, though early adoption is permitted. We do not expect it to have a material effect on First Guaranty's consolidated financial statements.

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Securities

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

A summary comparison of securities by type at March 31, 2024 and December 31, 2023 is shown below. 

	March 31, 2024								December 31, 2023
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale:
U.S. Treasuries	$	—	$	—	$	—	$	—	$	50,048	$	—	$	(218)	$	49,830
U.S. Government Agencies	—		—		—		—		—		—		—		—
Corporate debt securities	16,750		—		(1,157)		15,593		16,750		3		(1,279)		15,474
Municipal bonds	17,405		215		(382)		17,238		13,522		31		(372)		13,181
Mortgage-backed securities	5,121		—		(200)		4,921		5,144		—		(144)		5,000
Total available for sale securities	$	39,276	$	215	$	(1,739)	$	37,752	$	85,464	$	34	$	(2,013)	$	83,485
Held to maturity:
U.S. Government Agencies	$	266,113	$	—	$	(63,262)	$	202,851	$	265,896	$	—	$	(61,532)	$	204,364
Corporate debt securities	54,868		—		(6,092)		48,776		54,822		—		(5,602)		49,220
Total held to maturity securities	$	320,981	$	—	$	(69,354)	$	251,627	$	320,718	$	—	$	(67,134)	$	253,584

The scheduled maturities of securities at March 31, 2024, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to calls or prepayments. Mortgage-backed securities are not due at a single maturity because of amortization and potential prepayment of the underlying mortgages. For this reason, they are presented separately in the maturity table below:  

	At March 31, 2024
(in thousands)	Amortized Cost		Fair Value
Available for sale:
Due in one year or less	$	773	$	770
Due after one year through five years	4,455		4,458
Due after five years through 10 years	21,918		20,887
Over 10 years	7,009		6,716
Subtotal	34,155		32,831
Mortgage-backed securities	5,121		4,921
Total available for sale securities	$	39,276	$	37,752
Held to maturity:
Due in one year or less	$	—	$	—
Due after one year through five years	3,074		2,792
Due after five years through 10 years	114,616		98,521
Over 10 years	203,291		150,314
Total held to maturity securities	$	320,981	$	251,627

At March 31, 2024, $167.9 million of First Guaranty's securities were pledged to secure public funds deposits and borrowings. The pledged securities had a market value of $129.1 million as of March 31, 2024.

Accrued interest receivable on First Guaranty's investment securities was $2.5 million and $1.8 million at March 31, 2024 and December 31, 2023, respectively, and was included in accrued interest receivable on the consolidated balance sheet. First Guaranty had a $0.1 million allowance for credit losses related to the held to maturity portfolio at March 31, 2024 and December 31, 2023.

The following is a summary of the fair value of securities with gross unrealized losses and an aging of those gross unrealized losses at March 31, 2024.

						At March 31, 2024
	Less Than 12 Months					12 Months or More					Total
(in thousands)	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
Available for sale:
U.S. Treasuries	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—
Corporate debt securities	1	985		(15)		15	14,608		(1,142)		16	15,593		(1,157)
Municipal bonds	4	1,142		(9)		38	5,677		(373)		42	6,819		(382)
Mortgage-backed securities	2	2,587		(31)		5	2,333		(169)		7	4,920		(200)
Total available for sale securities	7	$	4,714	$	(55)	58	$	22,618	$	(1,684)	65	$	27,332	$	(1,739)
Held to maturity:
U.S. Government Agencies	—	$	—	$	—	29	$	202,851	$	(63,262)	29	$	202,851	$	(63,262)
Corporate debt securities	—	—		—		57	48,776		(6,092)		57	48,776		(6,092)
Total held to maturity securities	—	$	—	$	—	86	$	251,627	$	(69,354)	86	$	251,627	$	(69,354)

The following is a summary of the fair value of securities with gross unrealized losses and an aging of those gross unrealized losses at December 31, 2023. 

						At December 31, 2023
	Less Than 12 Months					12 Months or More					Total
(in thousands)	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
Available for sale:
U.S. Treasuries	—	$	—	$	—	3	$	49,830	$	(218)	3	$	49,830	$	(218)
U.S. Government Agencies	—	—		—		—	—		—		—	—		—
Corporate debt securities	—	—		—		15	14,471		(1,279)		15	14,471		(1,279)
Municipal bonds	12	3,417		(6)		41	5,895		(366)		53	9,312		(372)
Mortgage-backed securities	2	2,606		(21)		5	2,394		(123)		7	5,000		(144)
Total available for sale securities	14	$	6,023	$	(27)	64	$	72,590	$	(1,986)	78	$	78,613	$	(2,013)
Held to maturity:
U.S. Government Agencies	—	$	—	$	—	29	$	204,364	$	(61,532)	29	$	204,364	$	(61,532)
Corporate debt securities	—	—		—		57	49,220		(5,602)		57	49,220		(5,602)
Total held to maturity securities	—	$	—	$	—	86	$	253,584	$	(67,134)	86	$	253,584	$	(67,134)

As of March 31, 2024, 151 of First Guaranty's debt securities had unrealized losses totaling 20.3% of the individual securities' amortized cost basis and 19.7% of First Guaranty's total amortized cost basis of the investment securities portfolio. 144 of the 151 securities had been in a continuous loss position for over 12 months at such date. The 144 securities had an aggregate amortized cost basis of $345.3 million and an unrealized loss of $71.0 million at March 31, 2024. Management has the intent and ability to hold these debt securities until maturity or until anticipated recovery.

Securities are evaluated for impairment from credit losses at least quarterly and more frequently when economic or market conditions warrant such evaluation. Consideration is given to (i) the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, (iii) the recovery of contractual principal and interest and (iv) the intent and ability of First Guaranty to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

Investment securities issued by the U.S. Government and Government sponsored enterprises with unrealized losses and the amount of unrealized losses on those investment securities that are the result of changes in market interest rates will not be credit impaired. First Guaranty has the ability and intent to hold these securities until recovery, which may not be until maturity.

Corporate debt securities in a loss position consist primarily of corporate bonds issued by businesses in the financial, insurance, utility, manufacturing, industrial, consumer products and oil and gas industries. There was one held to maturity corporate security with a credit related impairment loss at March 31, 2024. First Guaranty believes that the remaining issuers will be able to fulfill the obligations of these securities based on evaluations described above. First Guaranty has the ability and intent to hold these securities until they recover, which could be at their maturity dates.

There were no charge-offs recognized securities during the three months ended March 31, 2024. There were no provisions for credit losses recognized on securities during the three months ended March 31, 2024.

For securities that have indications of credit related impairment, management analyzes future expected cash flows to determine if any credit related impairment is evident. Estimated cash flows are determined using management's best estimate of future cash flows based on specific assumptions. The assumptions used to determine the cash flows were based on estimates of loss severity and credit default probabilities. Management reviews reports from credit rating agencies and public filings of issuers. 

At March 31, 2024, First Guaranty's exposure to bond issuers that exceeded 10% of shareholders' equity is below: 

	At March 31, 2024
(in thousands)	Amortized Cost		Fair Value
U.S. Government Treasuries (U.S.)	$	—	$	—
Federal Home Loan Bank (FHLB)	32,222		25,894
Federal Home Loan Mortgage Corporation (Freddie Mac-FHLMC)	97,538		69,528
Federal Farm Credit Bank (FFCB)	138,853		109,762
Total	$	268,613	$	205,184

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Loans

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Loans

Loans

The following table summarizes the components of First Guaranty's loan portfolio as of March 31, 2024 and December 31, 2023: 

	March 31, 2024				December 31, 2023
(in thousands except for %)	Balance		As % of Category		Balance		As % of Category
Real Estate:
Construction & land development	$	328,090	11.9	%	$	399,435	14.5	%
Farmland	37,534		1.3	%	32,530		1.2	%
1- 4 Family	456,659		16.5	%	444,850		16.1	%
Multifamily	165,148		6.0	%	118,921		4.3	%
Non-farm non-residential	1,133,516		41.1	%	1,045,865		37.9	%
Total Real Estate	2,120,947		76.8	%	2,041,601		74.0	%
Non-Real Estate:
Agricultural	43,422		1.6	%	41,008		1.5	%
Commercial and industrial (1)	293,292		10.6	%	334,972		12.1	%
Commercial leases	253,016		9.2	%	285,415		10.4	%
Consumer and other	49,458		1.8	%	54,485		2.0	%
Total Non-Real Estate	639,188		23.2	%	715,880		26.0	%
Total Loans Before Unearned Income	2,760,135		100.0	%	2,757,481		100.0	%
Unearned income	(7,905)				(8,773)
Total Loans Net of Unearned Income	$	2,752,230			$	2,748,708

(1) Includes PPP loans fully guaranteed by the SBA of $2.6 million and $2.8 million at March 31, 2024 and December 31, 2023, respectively.

Accrued interest receivable on First Guaranty's loans totaled $14.8 million and $13.9 million at March 31, 2024 and December 31, 2023, respectively, and is included in accrued interest receivable on the consolidated balance sheet. Accrued interest receivable is excluded from First Guaranty's estimate of the allowance for credit losses.

The following table summarizes fixed and floating rate loans by contractual maturity, excluding nonaccrual loans, as of March 31, 2024 and December 31, 2023 unadjusted for scheduled principal payments, prepayments, or repricing opportunities. The average life of the loan portfolio may be substantially less than the contractual terms when these adjustments are considered. 

	March 31, 2024						December 31, 2023
(in thousands)	Fixed		Floating		Total		Fixed		Floating		Total
One year or less	$	271,330	$	122,431	$	393,761	$	268,864	$	88,884	$	357,748
More than one to five years	715,494		323,717		1,039,211		782,754		357,981		1,140,735
More than five to 15 years	81,780		277,294		359,074		88,490		269,918		358,408
Over 15 years	349,617		589,866		939,483		334,337		541,066		875,403
Subtotal	$	1,418,221	$	1,313,308	2,731,529		$	1,474,445	$	1,257,849	2,732,294
Nonaccrual loans					28,606						25,187
Total Loans Before Unearned Income					2,760,135						2,757,481
Unearned income					(7,905)						(8,773)
Total Loans Net of Unearned Income					$	2,752,230					$	2,748,708

Included in floating rate loans are loans that adjust to a floating rate following an initial fixed rate period. The initial fixed rate periods are typically one, three, or five years.

The following tables present the age analysis of past due loans at March 31, 2024 and December 31, 2023: 

	As of March 31, 2024
(in thousands)	30-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Recorded Investment 90 Days Accruing
Real Estate:
Construction & land development	$	1,675	$	598	$	2,273	$	325,817	$	328,090	$	—
Farmland	88		903		991		36,543		37,534		—
1- 4 family	5,121		8,157		13,278		443,381		456,659		—
Multifamily	—		537		537		164,611		165,148		—
Non-farm non-residential	3,500		24,333		27,833		1,105,683		1,133,516		14,600
Total Real Estate	10,384		34,528		44,912		2,076,035		2,120,947		14,600
Non-Real Estate:
Agricultural	234		1,716		1,950		41,472		43,422		58
Commercial and industrial	5,307		4,691		9,998		283,294		293,292		—
Commercial leases	1,833		1,799		3,632		249,384		253,016		—
Consumer and other	817		530		1,347		48,111		49,458		—
Total Non-Real Estate	8,191		8,736		16,927		622,261		639,188		58
Total Loans Before Unearned Income	$	18,575	$	43,264	$	61,839	$	2,698,296	$	2,760,135	$	14,658
Unearned income									(7,905)
Total Loans Net of Unearned Income									$	2,752,230

 

	As of December 31, 2023
(in thousands)	30-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Recorded Investment 90 Days Accruing
Real Estate:
Construction & land development	$	1,281	$	530	$	1,811	$	397,624	$	399,435	$	—
Farmland	97		836		933		31,597		32,530		—
1- 4 family	3,929		7,109		11,038		433,812		444,850		124
Multifamily	824		537		1,361		117,560		118,921		—
Non-farm non-residential	1,020		24,451		25,471		1,020,394		1,045,865		14,711
Total Real Estate	7,151		33,463		40,614		2,000,987		2,041,601		14,835
Non-Real Estate:
Agricultural	240		1,426		1,666		39,342		41,008		57
Commercial and industrial	2,483		1,976		4,459		330,513		334,972		395
Commercial leases	—		1,799		1,799		283,616		285,415		—
Consumer and other	1,037		1,810		2,847		51,638		54,485		—
Total Non-Real Estate	3,760		7,011		10,771		705,109		715,880		452
Total Loans Before Unearned Income	$	10,911	$	40,474	$	51,385	$	2,706,096	$	2,757,481	$	15,287
Unearned income									(8,773)
Total Loans Net of Unearned Income									$	2,748,708

The tables above include $28.6 million and $25.2 million of nonaccrual loans at March 31, 2024 and December 31, 2023, respectively. See the tables below for more detail on nonaccrual loans.

The following is a summary of nonaccrual loans by class at the dates indicated: 

	As of March 31, 2024
(in thousands)	With Related Allowance		Without Related Allowance		Total
Real Estate:
Construction & land development	$	598	$	—	$	598
Farmland	502		401		903
1- 4 family	7,051		1,106		8,157
Multifamily	—		537		537
Non-farm non-residential	8,857		876		9,733
Total Real Estate	17,008		2,920		19,928
Non-Real Estate:
Agricultural	1,327		331		1,658
Commercial and industrial	4,691		—		4,691
Commercial leases	—		1,799		1,799
Consumer and other	530		—		530
Total Non-Real Estate	6,548		2,130		8,678
Total Nonaccrual Loans	$	23,556	$	5,050	$	28,606

	As of December 31, 2023
(in thousands)	With Related Allowance		Without Related Allowance		Total
Real Estate:
Construction & land development	$	530	$	—	$	530
Farmland	511		325		836
1- 4 family	5,417		1,568		6,985
Multifamily	—		537		537
Non-farm non-residential	8,730		1,010		9,740
Total Real Estate	15,188		3,440		18,628
Non-Real Estate:
Agricultural	399		970		1,369
Commercial and industrial	1,581		—		1,581
Commercial leases	—		1,799		1,799
Consumer and other	1,810		—		1,810
Total Non-Real Estate	3,790		2,769		6,559
Total Nonaccrual Loans	$	18,978	$	6,209	$	25,187

The following table presents First Guaranty's loan portfolio by credit quality classification and origination year as of the date indicated:

	As of March 31, 2024
	Term Loans by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior	Revolving Loans		Total
Real Estate:
Construction & land development:
Pass	$	21,005	$	141,694	$	115,445	$	17,090	$	2,256	6,924	$	17,708	$	322,122
Special Mention	—		571		1,115		167		83		1,268	—		3,204
Substandard	—		—		649		454		263		1,267	—		2,633
Doubtful	—		—		39		91		—		1	—		131
Total Construction & land development	21,005		142,265		117,248		17,802		2,602		9,460	17,708		328,090
Current period gross charge-offs	—		—		—		—		—		—	—		—
Farmland
Pass	247		12,615		4,018		3,316		1,727		3,690	3,307		28,920
Special Mention	—		—		225		—		1,780		469	—		2,474
Substandard	—		—		214		2,702		2,534		645	—		6,095
Doubtful	—		—		—		—		—		—	45		45
Total Farmland	247		12,615		4,457		6,018		6,041		4,804	3,352		37,534
Current period gross charge-offs	—		—		—		—		—		—	—		—
1- 4 family
Pass	15,239		112,290		111,489		69,718		40,707		65,440	17,704		432,587
Special Mention	—		1,536		2,054		448		1,102		1,913	432		7,485
Substandard	—		75		2,480		5,636		1,598		5,132	1,148		16,069
Doubtful	—		—		122		—		—		324	72		518
Total 1- 4 family	15,239		113,901		116,145		75,802		43,407		72,809	19,356		456,659
Current period gross charge-offs	—		—		—		—		—		41	—		41
Multifamily
Pass	450		8,363		85,006		45,822		14,993		1,505	5,854		161,993
Special Mention	—		—		—		—		—		2,595	23		2,618
Substandard	—		—		—		—		—		537	—		537
Doubtful	—		—		—		—		—		—	—		—
Total Multifamily	450		8,363		85,006		45,822		14,993		4,637	5,877		165,148
Current period gross charge-offs	—		—		—		—		—		—	—		—
Non-farm non-residential
Pass	24,449		178,389		272,000		133,283		87,002		327,818	37,365		1,060,306
Special Mention	2,219		2,025		363		131		391		16,911	1,040		23,080
Substandard	—		246		19,210		19,366		—		6,039	5,203		50,064
Doubtful	—		—		—		—		66		—	—		66
Total non-farm non-residential	26,668		180,660		291,573		152,780		87,459		350,768	43,608		1,133,516
Current period gross charge-offs	—		—		—		—		—		—	—		—
Total Real Estate	63,609		457,804		614,429		298,224		154,502		442,478	89,901		2,120,947
Non-Real Estate:
Agricultural
Pass	1,118		2,758		10,202		3,067		1,303		3,572	18,034		40,054
Special Mention	—		28		33		—		156		—	66		283
Substandard	—		—		—		692		197		2,104	57		3,050
Doubtful	—		—		—		—		—		35	—		35
Total Agricultural	1,118		2,786		10,235		3,759		1,656		5,711	18,157		43,422
Current period gross charge-offs	—		—		—		33		—		—	—		33
Commercial and industrial
Pass	2,615		33,965		18,801		45,407		44,138		30,617	106,316		281,859

Special Mention	—		95		46		4,444		117		62		602		5,366
Substandard	—		45		336		195		497		4,722		105		5,900
Doubtful	—		—		—		—		—		167		—		167
Total Commercial and industrial	2,615		34,105		19,183		50,046		44,752		35,568		107,023		293,292
Current period gross charge-offs	—		220		124		75		182		26		—		627
Commercial leases
Pass	5,575		63,385		112,573		61,468		5,440		944		—		249,385
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		3,631		—		—		—		—		3,631
Doubtful	—		—		—		—		—		—		—		—
Total Commercial leases	5,575		63,385		116,204		61,468		5,440		944		—		253,016
Current period gross charge-offs	—		—		—		—		—		—		—		—
Consumer and other loans
Pass	2,852		19,403		7,387		5,541		5,698		6,894		—		47,775
Special Mention	—		31		104		185		65		27		—		412
Substandard	—		132		581		352		88		103		—		1,256
Doubtful	—		—		—		—		—		15		—		15
Total Consumer and other loans	2,852		19,566		8,072		6,078		5,851		7,039		—		49,458
Current period gross charge-offs	65		346		534		377		201		61		—		1,584
Total Non-Real Estate	12,160		119,842		153,694		121,351		57,699		49,262		125,180		639,188
Total Loans
Pass	73,550		572,862		736,921		384,712		203,264		447,404		206,288		2,625,001
Special Mention	2,219		4,286		3,940		5,375		3,694		23,245		2,163		44,922
Substandard	—		498		27,101		29,397		5,177		20,549		6,513		89,235
Doubtful	—		—		161		91		66		542		117		977
Total Loans Before Unearned Income	$	75,769	$	577,646	$	768,123	$	419,575	$	212,201	$	491,740	$	215,081	$	2,760,135
Unearned income															(7,905)
Total Loans Net of Unearned Income															$	2,752,230
Total Current Period Gross Charge-offs	$	65	$	566	$	658	$	485	$	383	$	128	$	—	$	2,285

	As of December 31, 2023
	Term Loans by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Prior	Revolving Loans		Total
Real Estate:
Construction & land development:
Pass	$	134,527	$	140,068	$	75,884	$	3,369	$	8,533	11,940	$	18,907	$	393,228
Special Mention	789		1,579		170		—		90		250	—		2,878
Substandard	—		716		458		263		94		1,668	—		3,199
Doubtful	—		39		91		—		—		—	—		130
Total Construction & land development	135,316		142,402		76,603		3,632		8,717		13,858	18,907		399,435
Current period gross charge-offs	—		—		—		—		—		—	—		—
Farmland
Pass	9,513		4,032		3,340		1,768		253		2,730	2,162		23,798
Special Mention	—		194		—		514		—		359	—		1,067
Substandard	—		251		1,369		3,877		115		653	1,355		7,620
Doubtful	—		—		—		—		—		—	45		45
Total Farmland	9,513		4,477		4,709		6,159		368		3,742	3,562		32,530
Current period gross charge-offs	—		—		—		—		—		—	—		—

1- 4 family
Pass	112,636	110,978	70,599	41,766	19,542	47,374	17,215	420,110
Special Mention	1,307	2,505	749	1,544	775	997	667	8,544
Substandard	48	2,625	5,368	1,357	1,956	3,086	773	15,213
Doubtful	—	122	391	—	239	159	72	983
Total 1- 4 family	113,991	116,230	77,107	44,667	22,512	51,616	18,727	444,850
Current period gross charge-offs	—	—	—	—	—	964	—	964
Multifamily
Pass	9,945	76,217	6,121	15,131	1,877	2,311	5,110	116,712
Special Mention	—	—	—	—	—	1,648	24	1,672
Substandard	—	—	—	—	—	537	—	537
Doubtful	—	—	—	—	—	—	—	—
Total Multifamily	9,945	76,217	6,121	15,131	1,877	4,496	5,134	118,921
Current period gross charge-offs	—	—	—	—	—	—	—	—
Non-farm non-residential
Pass	162,234	247,182	111,054	88,039	73,797	256,032	33,907	972,245
Special Mention	708	369	1,014	388	15,846	5,191	1,525	25,041
Substandard	247	18,930	18,488	—	—	6,125	4,723	48,513
Doubtful	—	—	—	66	—	—	—	66
Total non-farm non-residential	163,189	266,481	130,556	88,493	89,643	267,348	40,155	1,045,865
Current period gross charge-offs	—	—	—	138	—	—	—	138
Total Real Estate	431,954	605,807	295,096	158,082	123,117	341,060	86,485	2,041,601
Non-Real Estate:
Agricultural
Pass	2,555	10,406	3,142	1,336	1,532	2,378	16,259	37,608
Special Mention	—	104	—	81	—	—	25	210
Substandard	—	—	692	279	20	2,100	57	3,148
Doubtful	—	—	—	—	—	42	—	42
Total Agricultural	2,555	10,510	3,834	1,696	1,552	4,520	16,341	41,008
Current period gross charge-offs	—	—	—	—	—	—	—	—
Commercial and industrial
Pass	41,105	27,800	48,097	53,585	5,613	27,634	119,886	323,720
Special Mention	63	37	4,382	146	—	53	598	5,279
Substandard	45	283	178	602	27	4,531	145	5,811
Doubtful	—	—	—	—	—	162	—	162
Total Commercial and industrial	41,213	28,120	52,657	54,333	5,640	32,380	120,629	334,972
Current period gross charge-offs	29	791	133	532	—	209	—	1,694
Commercial leases
Pass	74,456	117,566	67,615	6,087	4,428	—	—	270,152
Special Mention	—	11,867	1,597	—	—	—	—	13,464
Substandard	—	1,799	—	—	—	—	—	1,799
Doubtful	—	—	—	—	—	—	—	—
Total Commercial leases	74,456	131,232	69,212	6,087	4,428	—	—	285,415
Current period gross charge-offs	—	—	—	—	—	—	—	—
Consumer and other loans
Pass	21,257	8,770	6,463	6,164	650	7,887	150	51,341
Special Mention	36	151	255	87	15	19	—	563
Substandard	164	1,077	790	265	86	68	—	2,450
Doubtful	—	—	34	79	2	16	—	131
Total Consumer and other loans	21,457	9,998	7,542	6,595	753	7,990	150	54,485
Current period gross charge-offs	598	1,126	820	359	28	44	—	2,975
Total Non-Real Estate	139,681	179,860	133,245	68,711	12,373	44,890	137,120	715,880
Total Loans

Pass	568,228		743,019		392,315		217,245		116,225		358,286		213,596		2,608,914
Special Mention	2,903		16,806		8,167		2,760		16,726		8,517		2,839		58,718
Substandard	504		25,681		27,343		6,643		2,298		18,768		7,053		88,290
Doubtful	—		161		516		145		241		379		117		1,559
Total Loans Before Unearned Income	$	571,635	$	785,667	$	428,341	$	226,793	$	135,490	$	385,950	$	223,605	$	2,757,481
Unearned income															(8,773)
Total Loans Net of Unearned Income															$	2,748,708
Total Current Period Gross Charge-offs	$	627	$	1,917	$	953	$	1,029	$	28	$	1,217	$	—	$	5,771

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Allowance for Credit Losses on Loans

3 Months Ended

Mar. 31, 2024

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, 2024 and 2023 are as follows: 

	For the Three Months Ended March 31,
	2024
(in thousands)	Beginning Allowance (12/31/2023)		Charge-offs		Recoveries		Provision		Ending Allowance (3/31/2024)
Real Estate:
Construction & land development	$	5,845	$	—	$	1	$	(1,016)	$	4,830
Farmland	36		—		—		27		63
1- 4 family	6,653		(41)		3		(20)		6,595
Multifamily	1,614		—		—		163		1,777
Non-farm non-residential	10,596		—		8		712		11,316
Total Real Estate	24,744		(41)		12		(134)		24,581
Non-Real Estate:
Agricultural	97		(33)		10		46		120
Commercial and industrial	2,711		(627)		115		1,684		3,883
Commercial leases	1,948		—		—		(564)		1,384
Consumer and other	1,426		(1,584)		118		1,522		1,482
Unallocated	—		—		—		—		—
Total Non-Real Estate	6,182		(2,244)		243		2,688		6,869
Total	$	30,926	$	(2,285)	$	255	$	2,554	$	31,450

	For the Three Months Ended March 31,
	2023
(in thousands)	Beginning Allowance (12/31/2022)		ASC 326 Adoption Day 1 Adjustment		Charge-offs		Recoveries		Provision		Ending Allowance (3/31/2023)
Real Estate:
Construction & land development	$	1,232	$	1,891	$	—	$	—	$	779	$	3,902
Farmland	83		(39)		—		—		(6)		38
1- 4 family	1,761		3,465		(33)		3		253		5,449
Multifamily	746		1,418		—		—		194		2,358
Non-farm non-residential	9,280		307		(138)		34		561		10,044
Total Real Estate	13,102		7,042		(171)		37		1,781		21,791
Non-Real Estate:
Agricultural	240		(98)		—		167		(166)		143
Commercial and industrial	2,194		2,971		(44)		154		(1,021)		4,254
Commercial leases	4,879		(162)		—		—		(2,280)		2,437
Consumer and other	2,506		(1,042)		(758)		131		860		1,697
Unallocated	597		(591)		—		—		1,140		1,146
Total Non-Real Estate	10,416		1,078		(802)		452		(1,467)		9,677
Total	$	23,518	$	8,120	$	(973)	$	489	$	314	$	31,468

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 March 31, 2024
(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	$	—	$	4,830	$	4,830	$	1,267	$	326,823	$	328,090
Farmland	—		63		63		5,638		31,896		37,534
1- 4 family	471		6,124		6,595		4,316		452,343		456,659
Multifamily	—		1,777		1,777		537		164,611		165,148
Non-farm non-residential	3,362		7,954		11,316		46,235		1,087,281		1,133,516
Total Real Estate	3,833		20,748		24,581		57,993		2,062,954		2,120,947
Non-Real Estate:
Agricultural	15		105		120		1,466		41,956		43,422
Commercial and industrial	2,483		1,400		3,883		3,717		289,575		293,292
Commercial leases	—		1,384		1,384		3,631		249,385		253,016
Consumer and other	—		1,482		1,482		—		49,458		49,458
Unallocated	—		—		—		—		—		—
Total Non-Real Estate	2,498		4,371		6,869		8,814		630,374		639,188
Total	$	6,331	$	25,119	$	31,450	$	66,807	$	2,693,328	2,760,135
Unearned Income											(7,905)
Total Loans Net of Unearned Income											$	2,752,230

All loans individually evaluated for impairment as of March 31, 2024 were considered collateral dependent loans.

	As of December 31, 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	$	—	$	5,845	$	5,845	$	1,389	$	398,046	$	399,435
Farmland	—		36		36		5,670		26,860		32,530
1- 4 family	316		6,337		6,653		5,066		439,784		444,850
Multifamily	—		1,614		1,614		537		118,384		118,921
Non-farm non-residential	3,047		7,549		10,596		46,571		999,294		1,045,865
Total Real Estate	3,363		21,381		24,744		59,233		1,982,368		2,041,601
Non-Real Estate:
Agricultural	1		96		97		1,466		39,542		41,008
Commercial and industrial	758		1,953		2,711		4,464		330,508		334,972
Commercial leases	—		1,948		1,948		1,799		283,616		285,415
Consumer and other	—		1,426		1,426		—		54,485		54,485
Unallocated	—		—		—		—		—		—
Total Non-Real Estate	759		5,423		6,182		7,729		708,151		715,880
Total	$	4,122	$	26,804	$	30,926	$	66,962	$	2,690,519	2,757,481
Unearned Income											(8,773)
Total loans net of unearned income											$	2,748,708

All loans individually evaluated for impairment as of December 31, 2023 were considered collateral dependent loans.

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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill and intangible assets deemed to have indefinite lives are no longer amortized but are subject to impairment testing. Other intangible assets continue to be amortized over their useful lives. First Guaranty's goodwill is the difference in purchase price over the fair value of net assets acquired from its acquisition of Homestead Bancorp in 2007, Premier Bancshares, Inc. in 2017 and Union Bancshares, Incorporated in 2019. Goodwill totaled $12.9 million at March 31, 2024 and December 31, 2023. No impairment charges have been recognized on First Guaranty's intangible assets since acquisition. Loan servicing assets totaled $0.5 million at March 31, 2024 and December 31, 2023. Other intangible assets recorded include core deposit intangibles, which are subject to amortization. The weighted-average amortization period remaining for First Guaranty's core deposit intangibles is 5 years at March 31, 2024. The core deposits intangible reflect the value of deposit relationships, including the beneficial rates, which arose from acquisitions.

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Other Real Estate (ORE)

3 Months Ended

Mar. 31, 2024

Real Estate [Abstract]

Other Real Estate (ORE)

Other Real Estate (ORE)

Other real estate owned consists of the following at the dates indicated: 

(in thousands)	March 31, 2024		December 31, 2023
Real Estate Owned Acquired by Foreclosure:
Residential	$	312	$	309
Construction & land development	282		251
Non-farm non-residential	690		690
Total Other Real Estate Owned and Foreclosed Property	1,284		1,250
Allowance for Other Real Estate Owned losses	—		—
Net Other Real Estate Owned and Foreclosed Property	$	1,284	$	1,250

Loans secured by one-to-four family residential properties in the process of foreclosure totaled $1.3 million as of March 31, 2024.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Off-balance sheet commitments

First Guaranty is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit and standby and commercial letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of the involvement in particular classes of financial instruments.

The exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby and commercial letters of credit is represented by the contractual notional amount of those instruments. The same credit policies are used in making commitments and conditional obligations as it does for balance sheet instruments. Unless otherwise noted, collateral or other security is not required to support financial instruments with credit risk.

Below is a summary of the notional amounts of the financial instruments with off-balance sheet risk at March 31, 2024 and December 31, 2023:

Contract Amount

(in thousands)	March 31, 2024		December 31, 2023
Commitments to Extend Credit	$	257,034	$	304,218
Unfunded Commitments under lines of credit	$	203,631	$	214,546
Commercial and Standby letters of credit	$	14,544	$	13,971

Allowance For Credit Losses - Off- Balance-Sheet Credit Exposures

The provision for credit losses on unfunded commitments was a reversal of $0.3 million for the three months ended March 31, 2024. The ACL on off-balance-sheet credit exposures total $2.6 million at March 31, 2024 and $2.8 million at December 31, 2023 and is included in other liabilities on the accompanying consolidated balance sheets.

Litigation

First Guaranty is subject to various legal proceedings in the normal course of its business. First Guaranty assesses its liabilities and contingencies in connection with outstanding legal proceedings. Where it is probable that First Guaranty will incur a loss and the amount of the loss can be reasonably estimated, First Guaranty records a liability in its consolidated financial statements. First Guaranty does not record a loss if the loss is not probable or the amount of the loss is not estimable. First Guaranty Bank is a defendant in a lawsuit alleging fault for a loss of funds by a customer related to fraud by a third party with a possible loss range of $0.0 million to $1.5 million. The Bank denies the allegations and intends to vigorously defend against this lawsuit, which is in early stages and no trial date has been set. No accrued liability has been recorded related to this lawsuit. First Guaranty settled a case in the third quarter of 2021 for $1.1 million. A receivable for $0.9 million has been recorded for recovery by a claim against First Guaranty's insurer. In the opinion of management, neither First Guaranty nor First Guaranty Bank is currently involved in such legal proceedings, either individually or in the aggregate, that the resolution is expected to have a material adverse effect on First Guaranty’s consolidated results of operations, financial condition, or cash flows. However, one or more unfavorable outcomes in these ordinary claims or litigation against First Guaranty or First Guaranty Bank could have a material adverse effect for the period in which they are resolved. In addition, regardless of their merits or ultimate outcomes, such matters are costly, divert management’s attention, and may materially and adversely affect the reputation of First Guaranty and First Guaranty Bank, even if resolved favorably.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The fair value of a financial instrument is the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. Valuation techniques use certain inputs to arrive at fair value. Inputs to valuation techniques are the assumptions that market participants would use in pricing the asset or liability. They may be observable or unobservable. First Guaranty uses a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1 Inputs – Unadjusted quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds or credit risks) or inputs that are derived principally from or corroborated by market data by correlation or other means.

Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

A description of the valuation methodologies used for instruments measured at fair value follows, as well as the classification of such instruments within the valuation hierarchy.

Securities available for sale. Securities are classified within Level 1 where quoted market prices are available in an active market. Inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are unavailable, fair value is estimated using quoted prices of securities with similar characteristics, at which point the securities would be classified within Level 2 of the hierarchy. Securities classified within Level 3 in First Guaranty's portfolio as of March 31, 2024 includes corporate debt and municipal securities.

Loan individually evaluated for impairment. Fair value is measured by either the fair value of the collateral if the loan is collateral dependent (Level 2 or Level 3), or the present value of expected future cash flows, discounted at the loan's effective interest rate (Level 3). Fair value of the collateral is determined by appraisals or by independent valuation. 

Other real estate owned. Properties are recorded at the balance of the loan or at estimated fair value less estimated selling costs, whichever is less, at the date acquired. Fair values of other real estate owned ("OREO") are determined by sales agreement or appraisal, and costs to sell are based on estimation per the terms and conditions of the sales agreement or amounts commonly used in real estate transactions. Inputs include appraisal values or recent sales activity for similar assets in the property's market; thus, OREO measured at fair value would be classified within either Level 2 or Level 3 of the hierarchy.

Certain non-financial assets and non-financial liabilities are measured at fair value on a non-recurring basis including assets and liabilities related to reporting units measured at fair value in the testing of goodwill impairment, as well as intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment.

The following table summarizes financial assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: 

(in thousands)	March 31, 2024		December 31, 2023
Available for Sale Securities Fair Value Measurements Using:
Level 1: Quoted Prices in Active Markets For Identical Assets	$	—	$	49,830
Level 2: Significant Other Observable Inputs	27,530		23,172
Level 3: Significant Unobservable Inputs	10,222		10,483
Securities available for sale measured at fair value	$	37,752	$	83,485

First Guaranty's valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While the methodologies used are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value.

The change in Level 1 securities available for sale from December 31, 2023 to March 31, 2024 was due to a net decrease in Treasury bills of $49.8 million. There were no transfers between Level 2 and Level 3 from December 31, 2023 to March 31, 2024. There were no transfers between Level 1 and 2 securities available for sale from December 31, 2023 to March 31, 2024.

The following table reconciles assets measured at fair value on a recurring basis using unobservable inputs (Level 3):

	Level 3 Changes
(in thousands)	March 31, 2024
Balance, beginning of year	$	10,483
Total gains or losses (realized/unrealized):
Included in earnings	—
Included in other comprehensive income	69
Purchases, sales, issuances and settlements, net	(330)
Transfers in and/or out of Level 3	—
Balance as of end of period	$	10,222

There were no gains or losses for the period included in earnings attributable to the change in unrealized gains or losses related to assets still held as of March 31, 2024.

The following table measures financial assets and financial liabilities measured at fair value on a non-recurring basis as of March 31, 2024 and December 31, 2023, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value: 

(in thousands)	At March 31, 2024		At December 31, 2023
Fair Value Measurements Using: Loans Individually Evaluated for Impairment
Level 1: Quoted Prices in Active Markets For Identical Assets	$	—	$	—
Level 2: Significant Other Observable Inputs	—		—
Level 3: Significant Unobservable Inputs	6,600		8,083
Loans individually evaluated for impairment measured at fair value	$	6,600	$	8,083
Fair Value Measurements Using: Other Real Estate Owned
Level 1: Quoted Prices in Active Markets For Identical Assets	$	—	$	—
Level 2: Significant Other Observable Inputs	1,284		1,250
Level 3: Significant Unobservable Inputs	—		—
Other real estate owned measured at fair value	$	1,284	$	1,250

ASC 825-10 provides First Guaranty with an option to report selected financial assets and liabilities at fair value. The fair value option established by this statement permits First Guaranty to choose to measure eligible items at fair value at specified election dates and report unrealized gains and losses on items for which the fair value option has been elected in earnings at each reporting date subsequent to implementation.

First Guaranty has chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with accounting principles generally accepted in the United States.

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Financial Instruments

3 Months Ended

Mar. 31, 2024

Investments, All Other Investments [Abstract]

Financial Instruments

Financial Instruments

Fair value estimates are generally subjective in nature and are dependent upon a number of significant assumptions associated with each instrument or group of similar instruments, including estimates of discount rates, risks associated with specific financial instruments, estimates of future cash flows and relevant available market information. Fair value information is intended to represent an estimate of an amount at which a financial instrument could be exchanged in a current transaction between a willing buyer and seller engaging in an exchange transaction. However, since there are no established trading markets for a significant portion of First Guaranty's financial instruments, First Guaranty may not be able to immediately settle financial instruments; as such, the fair values are not necessarily indicative of the amounts that could be realized through immediate settlement. In addition, the majority of the financial instruments, such as loans and deposits, are held to maturity and are realized or paid according to the contractual agreement with the customer.

Quoted market prices are used to estimate fair values when available. However, due to the nature of the financial instruments, in many instances quoted market prices are not available. Accordingly, estimated fair values have been estimated based on other valuation techniques, such as discounting estimated future cash flows using a rate commensurate with the risks involved or other acceptable methods. Fair values are estimated without regard to any premium or discount that may result from concentrations of ownership of financial instruments, possible income tax ramifications or estimated transaction costs. The fair value estimates are subjective in nature and involve matters of significant judgment and, therefore, cannot be determined with precision. Fair values are also estimated at a specific point in time and are based on interest rates and other assumptions at that date. As events change the assumptions underlying these estimates, the fair values of financial instruments will change.

Disclosure of fair values is not required for certain items such as lease financing, investments accounted for under the equity method of accounting, obligations of pension and other postretirement benefits, premises and equipment, other real estate, prepaid expenses, the value of long-term relationships with depositors (core deposit intangibles) and other customer relationships, other intangible assets and income tax assets and liabilities. Fair value estimates are presented for existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses have not been considered in the estimates. Accordingly, the aggregate fair value amounts presented do not purport to represent and should not be considered representative of the underlying market or franchise value of First Guaranty.

Because the standard permits many alternative calculation techniques and because numerous assumptions have been used to estimate the fair values, reasonable comparison of the fair value information with other financial institutions' fair value information cannot necessarily be made. The methods and assumptions used to estimate the fair values of financial instruments are as follows:

Cash and due from banks, interest-bearing deposits with banks, federal funds sold and federal funds purchased.

These items are generally short-term and the carrying amounts reported in the consolidated balance sheets are a reasonable estimation of the fair values.

Investment Securities.

Fair values are principally based on quoted market prices. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or the use of discounted cash flow analyses.

Loans Held for Sale.

Fair values of mortgage loans held for sale are based on commitments on hand from investors or prevailing market prices. These loans are classified within level 3 of the fair value hierarchy.

Loans, net.

Market values are computed present values using net present value formulas. The present value is the sum of the present value of all projected cash flows on an item at a specified discount rate. The discount rate is set as an appropriate rate index, plus or minus an appropriate spread. These loans are classified within level 3 of the fair value hierarchy.

Loan individually evaluated for impairment.

Fair value is measured by either the fair value of the collateral if the loan is collateral dependent (Level 2 or Level 3), or the present value of expected future cash flows, discounted at the loan's effective interest rate (Level 3). Fair value of the collateral is determined by appraisals or by independent valuation.

Cash Surrender of BOLI.

The cash surrender value of BOLI approximates fair value.

Accrued interest receivable.

The carrying amount of accrued interest receivable approximates its fair value.

Deposits.

The fair value of customer deposits, excluding certificates of deposit, is the amount payable on demand. Market values of certificates of deposit are actually computed present values using net present value formulas. The present value is the sum of the present value of all projected cash flows on an item at a specified discount rate. The discount rate is set as an appropriate rate index, plus or minus an appropriate spread. Deposits are classified within level 3 of the fair value hierarchy.

 Accrued interest payable.

The carrying amount of accrued interest payable approximates its fair value.

Borrowings.

The carrying amount of federal funds purchased and other short-term borrowings approximate their fair values. The fair value of First Guaranty's long-term borrowings is computed using net present value formulas. The present value is the sum of the present value of all projected cash flows on an item at a specified discount rate. The discount rate is set as an appropriate rate index, plus or minus an appropriate spread. Borrowings are classified within level 3 of the fair value hierarchy.

Other Unrecognized Financial Instruments.

The fair value of commitments to extend credit is estimated using the fees charged to enter into similar legally binding agreements, taking into account the remaining terms of the agreements and customers' credit ratings. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit are based on fees charged for similar agreements or on estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. At March 31, 2024 and December 31, 2023, the fair value of guarantees under commercial and standby letters of credit was not material.

The carrying amounts and estimated fair values of financial instruments at March 31, 2024 were as follows:

	Fair Value Measurements at March 31, 2024 Using
(in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Assets
Cash and due from banks	$	331,592	$	331,592	$	—	$	—	$	331,592
Federal funds sold	465		465		—		—		465
Securities, available for sale	37,752		—		27,530		10,222		37,752
Securities, held for maturity	320,901		—		251,627		—		251,627
Loans held for sale	—		—		—		—		—
Loans, net	2,720,780		—		—		2,572,245		2,572,245
Cash surrender value of BOLI	5,898		—		—		5,898		5,898
Accrued interest receivable	17,339		—		—		17,339		17,339
Liabilities
Deposits	$	3,063,876	$	—	$	—	$	3,069,935	3,069,935
Short-term advances from Federal Home Loan Bank	—						—		—
Short-term borrowings	—		—		—		—		—
Repurchase agreements	6,834		—		—		6,738		6,738
Accrued interest payable	10,182		—		—		10,182		10,182
Long-term advances from Federal Home Loan Bank	155,000		—		—		152,481		152,481
Senior long-term debt	18,102		—		—		18,297		18,297
Junior subordinated debentures	44,700		—		—		44,700		44,700

The carrying amounts and estimated fair values of financial instruments at December 31, 2023 were as follows:

			Fair Value Measurements at December 31, 2023 Using
(in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Assets
Cash and due from banks	$	286,114	$	286,114	$	—	$	—	$	286,114
Federal funds sold	341		341		—		—		341
Securities, available for sale	83,485		49,830		23,172		10,483		83,485
Securities, held for maturity	320,638		—		253,584		—		253,584
Loans, net	2,717,782		—		—		2,581,979		2,581,979
Cash surrender value of BOLI	5,861		—		—		5,861		5,861
Accrued interest receivable	15,713		—		—		15,713		15,713
Liabilities
Deposits	$	3,009,094	$	—	$	—	$	3,001,498	3,001,498
Short-term advances from Federal Home Loan Bank	50,000		—		—		50,000		50,000
Short-term borrowings	10,000		—		—		10,000		10,000
Repurchase agreements	6,297		—		—		6,285		6,285
Accrued interest payable	11,807		—		—		11,807		11,807
Long-term advances from Federal Home Loan Bank	155,000		—		—		152,299		152,299
Senior long-term debt	39,099		—		—		39,304		39,304
Junior subordinated debentures	15,000		—		—		15,000		15,000

There is no material difference between the contract amount and the estimated fair value of off-balance sheet items that are primarily comprised of short-term unfunded loan commitments that are generally at market prices.

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles. The consolidated financial statements and the footnotes of First Guaranty Bancshares, Inc. ("First Guaranty") thereto should be read in conjunction with the audited consolidated financial statements and note disclosures for First Guaranty previously filed with the Securities and Exchange Commission in First Guaranty's Annual Report on Form 10-K for the year ended December 31, 2023.

The consolidated financial statements include the accounts of First Guaranty Bancshares, Inc. and its wholly owned subsidiary First Guaranty Bank (the "Bank"). All significant intercompany balances and transactions have been eliminated in consolidation.

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of the consolidated financial statements. Those adjustments are of a normal recurring nature. The results of operations at March 31, 2024 and for the three month periods ended March 31, 2024 and 2023 are not necessarily indicative of the results expected for the full year or any other interim period. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for credit losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and the valuation of investment securities.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Accounting Standards Adopted in 2024

None.

Accounting Pronouncements Not Yet Adopted

ASU No. 2023-09, "Improvements to Tax Disclosures" ("ASU 2023-09") is intended to enhance the transparency and decision usefulness of income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. This update is effective for annual periods beginning after December 15, 2024, though early adoption is permitted. We do not expect it to have a material effect on First Guaranty's consolidated financial statements.

Fair Value Measurements

Fair Value Measurements

The fair value of a financial instrument is the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. Valuation techniques use certain inputs to arrive at fair value. Inputs to valuation techniques are the assumptions that market participants would use in pricing the asset or liability. They may be observable or unobservable. First Guaranty uses a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1 Inputs – Unadjusted quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds or credit risks) or inputs that are derived principally from or corroborated by market data by correlation or other means.

Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

A description of the valuation methodologies used for instruments measured at fair value follows, as well as the classification of such instruments within the valuation hierarchy.

Securities available for sale. Securities are classified within Level 1 where quoted market prices are available in an active market. Inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are unavailable, fair value is estimated using quoted prices of securities with similar characteristics, at which point the securities would be classified within Level 2 of the hierarchy. Securities classified within Level 3 in First Guaranty's portfolio as of March 31, 2024 includes corporate debt and municipal securities.

Loan individually evaluated for impairment. Fair value is measured by either the fair value of the collateral if the loan is collateral dependent (Level 2 or Level 3), or the present value of expected future cash flows, discounted at the loan's effective interest rate (Level 3). Fair value of the collateral is determined by appraisals or by independent valuation. 

Other real estate owned. Properties are recorded at the balance of the loan or at estimated fair value less estimated selling costs, whichever is less, at the date acquired. Fair values of other real estate owned ("OREO") are determined by sales agreement or appraisal, and costs to sell are based on estimation per the terms and conditions of the sales agreement or amounts commonly used in real estate transactions. Inputs include appraisal values or recent sales activity for similar assets in the property's market; thus, OREO measured at fair value would be classified within either Level 2 or Level 3 of the hierarchy.

Certain non-financial assets and non-financial liabilities are measured at fair value on a non-recurring basis including assets and liabilities related to reporting units measured at fair value in the testing of goodwill impairment, as well as intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment.

ASC 825-10 provides First Guaranty with an option to report selected financial assets and liabilities at fair value. The fair value option established by this statement permits First Guaranty to choose to measure eligible items at fair value at specified election dates and report unrealized gains and losses on items for which the fair value option has been elected in earnings at each reporting date subsequent to implementation.

First Guaranty has chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with accounting principles generally accepted in the United States.

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Securities (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Comparison of Securities by Type

A summary comparison of securities by type at March 31, 2024 and December 31, 2023 is shown below. 

	March 31, 2024								December 31, 2023
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale:
U.S. Treasuries	$	—	$	—	$	—	$	—	$	50,048	$	—	$	(218)	$	49,830
U.S. Government Agencies	—		—		—		—		—		—		—		—
Corporate debt securities	16,750		—		(1,157)		15,593		16,750		3		(1,279)		15,474
Municipal bonds	17,405		215		(382)		17,238		13,522		31		(372)		13,181
Mortgage-backed securities	5,121		—		(200)		4,921		5,144		—		(144)		5,000
Total available for sale securities	$	39,276	$	215	$	(1,739)	$	37,752	$	85,464	$	34	$	(2,013)	$	83,485
Held to maturity:
U.S. Government Agencies	$	266,113	$	—	$	(63,262)	$	202,851	$	265,896	$	—	$	(61,532)	$	204,364
Corporate debt securities	54,868		—		(6,092)		48,776		54,822		—		(5,602)		49,220
Total held to maturity securities	$	320,981	$	—	$	(69,354)	$	251,627	$	320,718	$	—	$	(67,134)	$	253,584

Schedule of Investments Classified by Contractual Maturity Date

For this reason, they are presented separately in the maturity table below:  

	At March 31, 2024
(in thousands)	Amortized Cost		Fair Value
Available for sale:
Due in one year or less	$	773	$	770
Due after one year through five years	4,455		4,458
Due after five years through 10 years	21,918		20,887
Over 10 years	7,009		6,716
Subtotal	34,155		32,831
Mortgage-backed securities	5,121		4,921
Total available for sale securities	$	39,276	$	37,752
Held to maturity:
Due in one year or less	$	—	$	—
Due after one year through five years	3,074		2,792
Due after five years through 10 years	114,616		98,521
Over 10 years	203,291		150,314
Total held to maturity securities	$	320,981	$	251,627

Schedule of Unrealized Loss on Investments

The following is a summary of the fair value of securities with gross unrealized losses and an aging of those gross unrealized losses at March 31, 2024.

						At March 31, 2024
	Less Than 12 Months					12 Months or More					Total
(in thousands)	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
Available for sale:
U.S. Treasuries	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—
Corporate debt securities	1	985		(15)		15	14,608		(1,142)		16	15,593		(1,157)
Municipal bonds	4	1,142		(9)		38	5,677		(373)		42	6,819		(382)
Mortgage-backed securities	2	2,587		(31)		5	2,333		(169)		7	4,920		(200)
Total available for sale securities	7	$	4,714	$	(55)	58	$	22,618	$	(1,684)	65	$	27,332	$	(1,739)
Held to maturity:
U.S. Government Agencies	—	$	—	$	—	29	$	202,851	$	(63,262)	29	$	202,851	$	(63,262)
Corporate debt securities	—	—		—		57	48,776		(6,092)		57	48,776		(6,092)
Total held to maturity securities	—	$	—	$	—	86	$	251,627	$	(69,354)	86	$	251,627	$	(69,354)

The following is a summary of the fair value of securities with gross unrealized losses and an aging of those gross unrealized losses at December 31, 2023. 

						At December 31, 2023
	Less Than 12 Months					12 Months or More					Total
(in thousands)	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
Available for sale:
U.S. Treasuries	—	$	—	$	—	3	$	49,830	$	(218)	3	$	49,830	$	(218)
U.S. Government Agencies	—	—		—		—	—		—		—	—		—
Corporate debt securities	—	—		—		15	14,471		(1,279)		15	14,471		(1,279)
Municipal bonds	12	3,417		(6)		41	5,895		(366)		53	9,312		(372)
Mortgage-backed securities	2	2,606		(21)		5	2,394		(123)		7	5,000		(144)
Total available for sale securities	14	$	6,023	$	(27)	64	$	72,590	$	(1,986)	78	$	78,613	$	(2,013)
Held to maturity:
U.S. Government Agencies	—	$	—	$	—	29	$	204,364	$	(61,532)	29	$	204,364	$	(61,532)
Corporate debt securities	—	—		—		57	49,220		(5,602)		57	49,220		(5,602)
Total held to maturity securities	—	$	—	$	—	86	$	253,584	$	(67,134)	86	$	253,584	$	(67,134)

Schedule of Exposure to Investment Securities Issuers that Exceeded 10% of Shareholders' Equity

At March 31, 2024, First Guaranty's exposure to bond issuers that exceeded 10% of shareholders' equity is below: 

	At March 31, 2024
(in thousands)	Amortized Cost		Fair Value
U.S. Government Treasuries (U.S.)	$	—	$	—
Federal Home Loan Bank (FHLB)	32,222		25,894
Federal Home Loan Mortgage Corporation (Freddie Mac-FHLMC)	97,538		69,528
Federal Farm Credit Bank (FFCB)	138,853		109,762
Total	$	268,613	$	205,184

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Loans (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Schedule of Components of Loan Portfolio

The following table summarizes the components of First Guaranty's loan portfolio as of March 31, 2024 and December 31, 2023: 

	March 31, 2024				December 31, 2023
(in thousands except for %)	Balance		As % of Category		Balance		As % of Category
Real Estate:
Construction & land development	$	328,090	11.9	%	$	399,435	14.5	%
Farmland	37,534		1.3	%	32,530		1.2	%
1- 4 Family	456,659		16.5	%	444,850		16.1	%
Multifamily	165,148		6.0	%	118,921		4.3	%
Non-farm non-residential	1,133,516		41.1	%	1,045,865		37.9	%
Total Real Estate	2,120,947		76.8	%	2,041,601		74.0	%
Non-Real Estate:
Agricultural	43,422		1.6	%	41,008		1.5	%
Commercial and industrial (1)	293,292		10.6	%	334,972		12.1	%
Commercial leases	253,016		9.2	%	285,415		10.4	%
Consumer and other	49,458		1.8	%	54,485		2.0	%
Total Non-Real Estate	639,188		23.2	%	715,880		26.0	%
Total Loans Before Unearned Income	2,760,135		100.0	%	2,757,481		100.0	%
Unearned income	(7,905)				(8,773)
Total Loans Net of Unearned Income	$	2,752,230			$	2,748,708

(1) Includes PPP loans fully guaranteed by the SBA of $2.6 million and $2.8 million at March 31, 2024 and December 31, 2023, respectively.

Schedule of Fixed and Floating Rate Loans by Contractual Maturity, Excluding Nonaccrual Loans

The following table summarizes fixed and floating rate loans by contractual maturity, excluding nonaccrual loans, as of March 31, 2024 and December 31, 2023 unadjusted for scheduled principal payments, prepayments, or repricing opportunities. The average life of the loan portfolio may be substantially less than the contractual terms when these adjustments are considered. 

	March 31, 2024						December 31, 2023
(in thousands)	Fixed		Floating		Total		Fixed		Floating		Total
One year or less	$	271,330	$	122,431	$	393,761	$	268,864	$	88,884	$	357,748
More than one to five years	715,494		323,717		1,039,211		782,754		357,981		1,140,735
More than five to 15 years	81,780		277,294		359,074		88,490		269,918		358,408
Over 15 years	349,617		589,866		939,483		334,337		541,066		875,403
Subtotal	$	1,418,221	$	1,313,308	2,731,529		$	1,474,445	$	1,257,849	2,732,294
Nonaccrual loans					28,606						25,187
Total Loans Before Unearned Income					2,760,135						2,757,481
Unearned income					(7,905)						(8,773)
Total Loans Net of Unearned Income					$	2,752,230					$	2,748,708

Schedule of Past due Financing Receivables

The following tables present the age analysis of past due loans at March 31, 2024 and December 31, 2023: 

	As of March 31, 2024
(in thousands)	30-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Recorded Investment 90 Days Accruing
Real Estate:
Construction & land development	$	1,675	$	598	$	2,273	$	325,817	$	328,090	$	—
Farmland	88		903		991		36,543		37,534		—
1- 4 family	5,121		8,157		13,278		443,381		456,659		—
Multifamily	—		537		537		164,611		165,148		—
Non-farm non-residential	3,500		24,333		27,833		1,105,683		1,133,516		14,600
Total Real Estate	10,384		34,528		44,912		2,076,035		2,120,947		14,600
Non-Real Estate:
Agricultural	234		1,716		1,950		41,472		43,422		58
Commercial and industrial	5,307		4,691		9,998		283,294		293,292		—
Commercial leases	1,833		1,799		3,632		249,384		253,016		—
Consumer and other	817		530		1,347		48,111		49,458		—
Total Non-Real Estate	8,191		8,736		16,927		622,261		639,188		58
Total Loans Before Unearned Income	$	18,575	$	43,264	$	61,839	$	2,698,296	$	2,760,135	$	14,658
Unearned income									(7,905)
Total Loans Net of Unearned Income									$	2,752,230

 

	As of December 31, 2023
(in thousands)	30-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Recorded Investment 90 Days Accruing
Real Estate:
Construction & land development	$	1,281	$	530	$	1,811	$	397,624	$	399,435	$	—
Farmland	97		836		933		31,597		32,530		—
1- 4 family	3,929		7,109		11,038		433,812		444,850		124
Multifamily	824		537		1,361		117,560		118,921		—
Non-farm non-residential	1,020		24,451		25,471		1,020,394		1,045,865		14,711
Total Real Estate	7,151		33,463		40,614		2,000,987		2,041,601		14,835
Non-Real Estate:
Agricultural	240		1,426		1,666		39,342		41,008		57
Commercial and industrial	2,483		1,976		4,459		330,513		334,972		395
Commercial leases	—		1,799		1,799		283,616		285,415		—
Consumer and other	1,037		1,810		2,847		51,638		54,485		—
Total Non-Real Estate	3,760		7,011		10,771		705,109		715,880		452
Total Loans Before Unearned Income	$	10,911	$	40,474	$	51,385	$	2,706,096	$	2,757,481	$	15,287
Unearned income									(8,773)
Total Loans Net of Unearned Income									$	2,748,708

Schedule of Nonaccrual Loans by Class

The following is a summary of nonaccrual loans by class at the dates indicated: 

	As of March 31, 2024
(in thousands)	With Related Allowance		Without Related Allowance		Total
Real Estate:
Construction & land development	$	598	$	—	$	598
Farmland	502		401		903
1- 4 family	7,051		1,106		8,157
Multifamily	—		537		537
Non-farm non-residential	8,857		876		9,733
Total Real Estate	17,008		2,920		19,928
Non-Real Estate:
Agricultural	1,327		331		1,658
Commercial and industrial	4,691		—		4,691
Commercial leases	—		1,799		1,799
Consumer and other	530		—		530
Total Non-Real Estate	6,548		2,130		8,678
Total Nonaccrual Loans	$	23,556	$	5,050	$	28,606

	As of December 31, 2023
(in thousands)	With Related Allowance		Without Related Allowance		Total
Real Estate:
Construction & land development	$	530	$	—	$	530
Farmland	511		325		836
1- 4 family	5,417		1,568		6,985
Multifamily	—		537		537
Non-farm non-residential	8,730		1,010		9,740
Total Real Estate	15,188		3,440		18,628
Non-Real Estate:
Agricultural	399		970		1,369
Commercial and industrial	1,581		—		1,581
Commercial leases	—		1,799		1,799
Consumer and other	1,810		—		1,810
Total Non-Real Estate	3,790		2,769		6,559
Total Nonaccrual Loans	$	18,978	$	6,209	$	25,187

Schedule of Credit Exposure of Loan Portfolio, Including Loans Acquired with Deteriorated Credit Quality, by Specific Credit Ratings

The following table presents First Guaranty's loan portfolio by credit quality classification and origination year as of the date indicated:

	As of March 31, 2024
	Term Loans by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior	Revolving Loans		Total
Real Estate:
Construction & land development:
Pass	$	21,005	$	141,694	$	115,445	$	17,090	$	2,256	6,924	$	17,708	$	322,122
Special Mention	—		571		1,115		167		83		1,268	—		3,204
Substandard	—		—		649		454		263		1,267	—		2,633
Doubtful	—		—		39		91		—		1	—		131
Total Construction & land development	21,005		142,265		117,248		17,802		2,602		9,460	17,708		328,090
Current period gross charge-offs	—		—		—		—		—		—	—		—
Farmland
Pass	247		12,615		4,018		3,316		1,727		3,690	3,307		28,920
Special Mention	—		—		225		—		1,780		469	—		2,474
Substandard	—		—		214		2,702		2,534		645	—		6,095
Doubtful	—		—		—		—		—		—	45		45
Total Farmland	247		12,615		4,457		6,018		6,041		4,804	3,352		37,534
Current period gross charge-offs	—		—		—		—		—		—	—		—
1- 4 family
Pass	15,239		112,290		111,489		69,718		40,707		65,440	17,704		432,587
Special Mention	—		1,536		2,054		448		1,102		1,913	432		7,485
Substandard	—		75		2,480		5,636		1,598		5,132	1,148		16,069
Doubtful	—		—		122		—		—		324	72		518
Total 1- 4 family	15,239		113,901		116,145		75,802		43,407		72,809	19,356		456,659
Current period gross charge-offs	—		—		—		—		—		41	—		41
Multifamily
Pass	450		8,363		85,006		45,822		14,993		1,505	5,854		161,993
Special Mention	—		—		—		—		—		2,595	23		2,618
Substandard	—		—		—		—		—		537	—		537
Doubtful	—		—		—		—		—		—	—		—
Total Multifamily	450		8,363		85,006		45,822		14,993		4,637	5,877		165,148
Current period gross charge-offs	—		—		—		—		—		—	—		—
Non-farm non-residential
Pass	24,449		178,389		272,000		133,283		87,002		327,818	37,365		1,060,306
Special Mention	2,219		2,025		363		131		391		16,911	1,040		23,080
Substandard	—		246		19,210		19,366		—		6,039	5,203		50,064
Doubtful	—		—		—		—		66		—	—		66
Total non-farm non-residential	26,668		180,660		291,573		152,780		87,459		350,768	43,608		1,133,516
Current period gross charge-offs	—		—		—		—		—		—	—		—
Total Real Estate	63,609		457,804		614,429		298,224		154,502		442,478	89,901		2,120,947
Non-Real Estate:
Agricultural
Pass	1,118		2,758		10,202		3,067		1,303		3,572	18,034		40,054
Special Mention	—		28		33		—		156		—	66		283
Substandard	—		—		—		692		197		2,104	57		3,050
Doubtful	—		—		—		—		—		35	—		35
Total Agricultural	1,118		2,786		10,235		3,759		1,656		5,711	18,157		43,422
Current period gross charge-offs	—		—		—		33		—		—	—		33
Commercial and industrial
Pass	2,615		33,965		18,801		45,407		44,138		30,617	106,316		281,859

Special Mention	—		95		46		4,444		117		62		602		5,366
Substandard	—		45		336		195		497		4,722		105		5,900
Doubtful	—		—		—		—		—		167		—		167
Total Commercial and industrial	2,615		34,105		19,183		50,046		44,752		35,568		107,023		293,292
Current period gross charge-offs	—		220		124		75		182		26		—		627
Commercial leases
Pass	5,575		63,385		112,573		61,468		5,440		944		—		249,385
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		3,631		—		—		—		—		3,631
Doubtful	—		—		—		—		—		—		—		—
Total Commercial leases	5,575		63,385		116,204		61,468		5,440		944		—		253,016
Current period gross charge-offs	—		—		—		—		—		—		—		—
Consumer and other loans
Pass	2,852		19,403		7,387		5,541		5,698		6,894		—		47,775
Special Mention	—		31		104		185		65		27		—		412
Substandard	—		132		581		352		88		103		—		1,256
Doubtful	—		—		—		—		—		15		—		15
Total Consumer and other loans	2,852		19,566		8,072		6,078		5,851		7,039		—		49,458
Current period gross charge-offs	65		346		534		377		201		61		—		1,584
Total Non-Real Estate	12,160		119,842		153,694		121,351		57,699		49,262		125,180		639,188
Total Loans
Pass	73,550		572,862		736,921		384,712		203,264		447,404		206,288		2,625,001
Special Mention	2,219		4,286		3,940		5,375		3,694		23,245		2,163		44,922
Substandard	—		498		27,101		29,397		5,177		20,549		6,513		89,235
Doubtful	—		—		161		91		66		542		117		977
Total Loans Before Unearned Income	$	75,769	$	577,646	$	768,123	$	419,575	$	212,201	$	491,740	$	215,081	$	2,760,135
Unearned income															(7,905)
Total Loans Net of Unearned Income															$	2,752,230
Total Current Period Gross Charge-offs	$	65	$	566	$	658	$	485	$	383	$	128	$	—	$	2,285

	As of December 31, 2023
	Term Loans by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Prior	Revolving Loans		Total
Real Estate:
Construction & land development:
Pass	$	134,527	$	140,068	$	75,884	$	3,369	$	8,533	11,940	$	18,907	$	393,228
Special Mention	789		1,579		170		—		90		250	—		2,878
Substandard	—		716		458		263		94		1,668	—		3,199
Doubtful	—		39		91		—		—		—	—		130
Total Construction & land development	135,316		142,402		76,603		3,632		8,717		13,858	18,907		399,435
Current period gross charge-offs	—		—		—		—		—		—	—		—
Farmland
Pass	9,513		4,032		3,340		1,768		253		2,730	2,162		23,798
Special Mention	—		194		—		514		—		359	—		1,067
Substandard	—		251		1,369		3,877		115		653	1,355		7,620
Doubtful	—		—		—		—		—		—	45		45
Total Farmland	9,513		4,477		4,709		6,159		368		3,742	3,562		32,530
Current period gross charge-offs	—		—		—		—		—		—	—		—

1- 4 family
Pass	112,636	110,978	70,599	41,766	19,542	47,374	17,215	420,110
Special Mention	1,307	2,505	749	1,544	775	997	667	8,544
Substandard	48	2,625	5,368	1,357	1,956	3,086	773	15,213
Doubtful	—	122	391	—	239	159	72	983
Total 1- 4 family	113,991	116,230	77,107	44,667	22,512	51,616	18,727	444,850
Current period gross charge-offs	—	—	—	—	—	964	—	964
Multifamily
Pass	9,945	76,217	6,121	15,131	1,877	2,311	5,110	116,712
Special Mention	—	—	—	—	—	1,648	24	1,672
Substandard	—	—	—	—	—	537	—	537
Doubtful	—	—	—	—	—	—	—	—
Total Multifamily	9,945	76,217	6,121	15,131	1,877	4,496	5,134	118,921
Current period gross charge-offs	—	—	—	—	—	—	—	—
Non-farm non-residential
Pass	162,234	247,182	111,054	88,039	73,797	256,032	33,907	972,245
Special Mention	708	369	1,014	388	15,846	5,191	1,525	25,041
Substandard	247	18,930	18,488	—	—	6,125	4,723	48,513
Doubtful	—	—	—	66	—	—	—	66
Total non-farm non-residential	163,189	266,481	130,556	88,493	89,643	267,348	40,155	1,045,865
Current period gross charge-offs	—	—	—	138	—	—	—	138
Total Real Estate	431,954	605,807	295,096	158,082	123,117	341,060	86,485	2,041,601
Non-Real Estate:
Agricultural
Pass	2,555	10,406	3,142	1,336	1,532	2,378	16,259	37,608
Special Mention	—	104	—	81	—	—	25	210
Substandard	—	—	692	279	20	2,100	57	3,148
Doubtful	—	—	—	—	—	42	—	42
Total Agricultural	2,555	10,510	3,834	1,696	1,552	4,520	16,341	41,008
Current period gross charge-offs	—	—	—	—	—	—	—	—
Commercial and industrial
Pass	41,105	27,800	48,097	53,585	5,613	27,634	119,886	323,720
Special Mention	63	37	4,382	146	—	53	598	5,279
Substandard	45	283	178	602	27	4,531	145	5,811
Doubtful	—	—	—	—	—	162	—	162
Total Commercial and industrial	41,213	28,120	52,657	54,333	5,640	32,380	120,629	334,972
Current period gross charge-offs	29	791	133	532	—	209	—	1,694
Commercial leases
Pass	74,456	117,566	67,615	6,087	4,428	—	—	270,152
Special Mention	—	11,867	1,597	—	—	—	—	13,464
Substandard	—	1,799	—	—	—	—	—	1,799
Doubtful	—	—	—	—	—	—	—	—
Total Commercial leases	74,456	131,232	69,212	6,087	4,428	—	—	285,415
Current period gross charge-offs	—	—	—	—	—	—	—	—
Consumer and other loans
Pass	21,257	8,770	6,463	6,164	650	7,887	150	51,341
Special Mention	36	151	255	87	15	19	—	563
Substandard	164	1,077	790	265	86	68	—	2,450
Doubtful	—	—	34	79	2	16	—	131
Total Consumer and other loans	21,457	9,998	7,542	6,595	753	7,990	150	54,485
Current period gross charge-offs	598	1,126	820	359	28	44	—	2,975
Total Non-Real Estate	139,681	179,860	133,245	68,711	12,373	44,890	137,120	715,880
Total Loans

Pass	568,228		743,019		392,315		217,245		116,225		358,286		213,596		2,608,914
Special Mention	2,903		16,806		8,167		2,760		16,726		8,517		2,839		58,718
Substandard	504		25,681		27,343		6,643		2,298		18,768		7,053		88,290
Doubtful	—		161		516		145		241		379		117		1,559
Total Loans Before Unearned Income	$	571,635	$	785,667	$	428,341	$	226,793	$	135,490	$	385,950	$	223,605	$	2,757,481
Unearned income															(8,773)
Total Loans Net of Unearned Income															$	2,748,708
Total Current Period Gross Charge-offs	$	627	$	1,917	$	953	$	1,029	$	28	$	1,217	$	—	$	5,771

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Allowance for Credit Losses on Loans (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Schedule of Changes in Allowance for Loan Losses and Allowance and Loans Individually and Collectively Evaluated for Impairment

A summary of changes in the allowance for credit losses, by portfolio type, for the three months ended March 31, 2024 and 2023 are as follows: 

	For the Three Months Ended March 31,
	2024
(in thousands)	Beginning Allowance (12/31/2023)		Charge-offs		Recoveries		Provision		Ending Allowance (3/31/2024)
Real Estate:
Construction & land development	$	5,845	$	—	$	1	$	(1,016)	$	4,830
Farmland	36		—		—		27		63
1- 4 family	6,653		(41)		3		(20)		6,595
Multifamily	1,614		—		—		163		1,777
Non-farm non-residential	10,596		—		8		712		11,316
Total Real Estate	24,744		(41)		12		(134)		24,581
Non-Real Estate:
Agricultural	97		(33)		10		46		120
Commercial and industrial	2,711		(627)		115		1,684		3,883
Commercial leases	1,948		—		—		(564)		1,384
Consumer and other	1,426		(1,584)		118		1,522		1,482
Unallocated	—		—		—		—		—
Total Non-Real Estate	6,182		(2,244)		243		2,688		6,869
Total	$	30,926	$	(2,285)	$	255	$	2,554	$	31,450

	For the Three Months Ended March 31,
	2023
(in thousands)	Beginning Allowance (12/31/2022)		ASC 326 Adoption Day 1 Adjustment		Charge-offs		Recoveries		Provision		Ending Allowance (3/31/2023)
Real Estate:
Construction & land development	$	1,232	$	1,891	$	—	$	—	$	779	$	3,902
Farmland	83		(39)		—		—		(6)		38
1- 4 family	1,761		3,465		(33)		3		253		5,449
Multifamily	746		1,418		—		—		194		2,358
Non-farm non-residential	9,280		307		(138)		34		561		10,044
Total Real Estate	13,102		7,042		(171)		37		1,781		21,791
Non-Real Estate:
Agricultural	240		(98)		—		167		(166)		143
Commercial and industrial	2,194		2,971		(44)		154		(1,021)		4,254
Commercial leases	4,879		(162)		—		—		(2,280)		2,437
Consumer and other	2,506		(1,042)		(758)		131		860		1,697
Unallocated	597		(591)		—		—		1,140		1,146
Total Non-Real Estate	10,416		1,078		(802)		452		(1,467)		9,677
Total	$	23,518	$	8,120	$	(973)	$	489	$	314	$	31,468

A summary of the allowance along with loans and leases individually and collectively evaluated are as follows: 

	As of March 31, 2024
(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	$	—	$	4,830	$	4,830	$	1,267	$	326,823	$	328,090
Farmland	—		63		63		5,638		31,896		37,534
1- 4 family	471		6,124		6,595		4,316		452,343		456,659
Multifamily	—		1,777		1,777		537		164,611		165,148
Non-farm non-residential	3,362		7,954		11,316		46,235		1,087,281		1,133,516
Total Real Estate	3,833		20,748		24,581		57,993		2,062,954		2,120,947
Non-Real Estate:
Agricultural	15		105		120		1,466		41,956		43,422
Commercial and industrial	2,483		1,400		3,883		3,717		289,575		293,292
Commercial leases	—		1,384		1,384		3,631		249,385		253,016
Consumer and other	—		1,482		1,482		—		49,458		49,458
Unallocated	—		—		—		—		—		—
Total Non-Real Estate	2,498		4,371		6,869		8,814		630,374		639,188
Total	$	6,331	$	25,119	$	31,450	$	66,807	$	2,693,328	2,760,135
Unearned Income											(7,905)
Total Loans Net of Unearned Income											$	2,752,230

All loans individually evaluated for impairment as of March 31, 2024 were considered collateral dependent loans.

	As of December 31, 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	$	—	$	5,845	$	5,845	$	1,389	$	398,046	$	399,435
Farmland	—		36		36		5,670		26,860		32,530
1- 4 family	316		6,337		6,653		5,066		439,784		444,850
Multifamily	—		1,614		1,614		537		118,384		118,921
Non-farm non-residential	3,047		7,549		10,596		46,571		999,294		1,045,865
Total Real Estate	3,363		21,381		24,744		59,233		1,982,368		2,041,601
Non-Real Estate:
Agricultural	1		96		97		1,466		39,542		41,008
Commercial and industrial	758		1,953		2,711		4,464		330,508		334,972
Commercial leases	—		1,948		1,948		1,799		283,616		285,415
Consumer and other	—		1,426		1,426		—		54,485		54,485
Unallocated	—		—		—		—		—		—
Total Non-Real Estate	759		5,423		6,182		7,729		708,151		715,880
Total	$	4,122	$	26,804	$	30,926	$	66,962	$	2,690,519	2,757,481
Unearned Income											(8,773)
Total loans net of unearned income											$	2,748,708

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Other Real Estate (ORE) (Tables)

3 Months Ended

Mar. 31, 2024

Real Estate [Abstract]

Schedule of Other Real Estate Owned

Other real estate owned consists of the following at the dates indicated: 

(in thousands)	March 31, 2024		December 31, 2023
Real Estate Owned Acquired by Foreclosure:
Residential	$	312	$	309
Construction & land development	282		251
Non-farm non-residential	690		690
Total Other Real Estate Owned and Foreclosed Property	1,284		1,250
Allowance for Other Real Estate Owned losses	—		—
Net Other Real Estate Owned and Foreclosed Property	$	1,284	$	1,250

XML

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Notional Amounts of Financial Instruments with Off-Balance Sheet Risk

Below is a summary of the notional amounts of the financial instruments with off-balance sheet risk at March 31, 2024 and December 31, 2023:

Contract Amount

(in thousands)	March 31, 2024		December 31, 2023
Commitments to Extend Credit	$	257,034	$	304,218
Unfunded Commitments under lines of credit	$	203,631	$	214,546
Commercial and Standby letters of credit	$	14,544	$	13,971

XML

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets Measured on Recurring Basis

The following table summarizes financial assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: 

(in thousands)	March 31, 2024		December 31, 2023
Available for Sale Securities Fair Value Measurements Using:
Level 1: Quoted Prices in Active Markets For Identical Assets	$	—	$	49,830
Level 2: Significant Other Observable Inputs	27,530		23,172
Level 3: Significant Unobservable Inputs	10,222		10,483
Securities available for sale measured at fair value	$	37,752	$	83,485

Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table reconciles assets measured at fair value on a recurring basis using unobservable inputs (Level 3):

	Level 3 Changes
(in thousands)	March 31, 2024
Balance, beginning of year	$	10,483
Total gains or losses (realized/unrealized):
Included in earnings	—
Included in other comprehensive income	69
Purchases, sales, issuances and settlements, net	(330)
Transfers in and/or out of Level 3	—
Balance as of end of period	$	10,222

Schedule of Fair Value Measurements, Nonrecurring

The following table measures financial assets and financial liabilities measured at fair value on a non-recurring basis as of March 31, 2024 and December 31, 2023, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value: 

(in thousands)	At March 31, 2024		At December 31, 2023
Fair Value Measurements Using: Loans Individually Evaluated for Impairment
Level 1: Quoted Prices in Active Markets For Identical Assets	$	—	$	—
Level 2: Significant Other Observable Inputs	—		—
Level 3: Significant Unobservable Inputs	6,600		8,083
Loans individually evaluated for impairment measured at fair value	$	6,600	$	8,083
Fair Value Measurements Using: Other Real Estate Owned
Level 1: Quoted Prices in Active Markets For Identical Assets	$	—	$	—
Level 2: Significant Other Observable Inputs	1,284		1,250
Level 3: Significant Unobservable Inputs	—		—
Other real estate owned measured at fair value	$	1,284	$	1,250

XML

Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Investments, All Other Investments [Abstract]

Schedule of Estimated Fair Values and Carrying Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at March 31, 2024 were as follows:

	Fair Value Measurements at March 31, 2024 Using
(in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Assets
Cash and due from banks	$	331,592	$	331,592	$	—	$	—	$	331,592
Federal funds sold	465		465		—		—		465
Securities, available for sale	37,752		—		27,530		10,222		37,752
Securities, held for maturity	320,901		—		251,627		—		251,627
Loans held for sale	—		—		—		—		—
Loans, net	2,720,780		—		—		2,572,245		2,572,245
Cash surrender value of BOLI	5,898		—		—		5,898		5,898
Accrued interest receivable	17,339		—		—		17,339		17,339
Liabilities
Deposits	$	3,063,876	$	—	$	—	$	3,069,935	3,069,935
Short-term advances from Federal Home Loan Bank	—						—		—
Short-term borrowings	—		—		—		—		—
Repurchase agreements	6,834		—		—		6,738		6,738
Accrued interest payable	10,182		—		—		10,182		10,182
Long-term advances from Federal Home Loan Bank	155,000		—		—		152,481		152,481
Senior long-term debt	18,102		—		—		18,297		18,297
Junior subordinated debentures	44,700		—		—		44,700		44,700

The carrying amounts and estimated fair values of financial instruments at December 31, 2023 were as follows:

			Fair Value Measurements at December 31, 2023 Using
(in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Assets
Cash and due from banks	$	286,114	$	286,114	$	—	$	—	$	286,114
Federal funds sold	341		341		—		—		341
Securities, available for sale	83,485		49,830		23,172		10,483		83,485
Securities, held for maturity	320,638		—		253,584		—		253,584
Loans, net	2,717,782		—		—		2,581,979		2,581,979
Cash surrender value of BOLI	5,861		—		—		5,861		5,861
Accrued interest receivable	15,713		—		—		15,713		15,713
Liabilities
Deposits	$	3,009,094	$	—	$	—	$	3,001,498	3,001,498
Short-term advances from Federal Home Loan Bank	50,000		—		—		50,000		50,000
Short-term borrowings	10,000		—		—		10,000		10,000
Repurchase agreements	6,297		—		—		6,285		6,285
Accrued interest payable	11,807		—		—		11,807		11,807
Long-term advances from Federal Home Loan Bank	155,000		—		—		152,299		152,299
Senior long-term debt	39,099		—		—		39,304		39,304
Junior subordinated debentures	15,000		—		—		15,000		15,000

XML

Securities - Schedule of Comparison of Securities by Type (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Available for sale:
Amortized Cost	$ 39,276	$ 85,464
Gross Unrealized Gains	215	34
Gross Unrealized Losses	(1,739)	(2,013)
Fair Value	37,752	83,485
Held to maturity:
Amortized Cost	320,981	320,718
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(69,354)	(67,134)
Fair Value	251,627	253,584
U.S. Treasuries
Available for sale:
Amortized Cost	0	50,048
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(218)
Fair Value	0	49,830
U.S. Government Agencies
Available for sale:
Amortized Cost	0	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	0	0
Held to maturity:
Amortized Cost	266,113	265,896
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(63,262)	(61,532)
Fair Value	202,851	204,364
Corporate debt securities
Available for sale:
Amortized Cost	16,750	16,750
Gross Unrealized Gains	0	3
Gross Unrealized Losses	(1,157)	(1,279)
Fair Value	15,593	15,474
Held to maturity:
Amortized Cost	54,868	54,822
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(6,092)	(5,602)
Fair Value	48,776	49,220
Municipal bonds
Available for sale:
Amortized Cost	17,405	13,522
Gross Unrealized Gains	215	31
Gross Unrealized Losses	(382)	(372)
Fair Value	17,238	13,181
Mortgage-backed securities
Available for sale:
Amortized Cost	5,121	5,144
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(200)	(144)
Fair Value	$ 4,921	$ 5,000

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Securities - Scheduled Maturities of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Amortized Cost
Due in one year or less	$ 773
Due after one year through five years	4,455
Due after five years through 10 years	21,918
Over 10 years	7,009
Subtotal	34,155
Amortized Cost	39,276	$ 85,464
Fair Value
Due in one year or less	770
Due after one year through five years	4,458
Due after five years through 10 years	20,887
Over 10 years	6,716
Subtotal	32,831
Fair Value	37,752	83,485
Amortized Cost
Due in one year or less	0
Due after one year through five years	3,074
Due after five years through 10 years	114,616
Over 10 years	203,291
Amortized Cost	320,981	320,718
Fair Value
Due in one year or less	0
Due after one year through five years	2,792
Due after five years through 10 years	98,521
Over 10 years	150,314
Fair Value	251,627	253,584
Mortgage-backed securities
Amortized Cost
Mortgage-backed securities	5,121
Amortized Cost	5,121	5,144
Fair Value
Mortgage-backed securities	4,921
Fair Value	$ 4,921	$ 5,000

XML

Securities - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) chargeoff security	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Debt Securities, Available-for-sale [Line Items]
Marketable securities	$ 358,653		$ 404,123
Debt securities, accrued interest	2,500		1,800
Held to maturity, allowance for credit losses	$ 80		$ 80
Number of debt securities with unrealized losses | security	151
Unrealized losses on debt securities in continuous loss position as percentage of total individual securities' amortized cost basis	20.30%
Unrealized losses on debt securities in continuous loss position as percentage of amortized cost basis of investment securities portfolio	19.70%
Number of debt securities in continuous loss position for over 12 months | security	144
Debt securities in a continuous loss position for over 12 months, amortized cost basis	$ 345,300
Debt securities in a continuous loss position for over 12 months, unrealized loss	$ 71,000
Number of held to maturity corporate security with a credit related impairment loss | security	1
Provision for credit losses	$ 2,304	$ 314
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Number of charge-offs | chargeoff	0
Held-to-Maturity and Available-for-Sale Securities
Debt Securities, Available-for-sale [Line Items]
Provision for credit losses	$ 0
Deposits
Debt Securities, Available-for-sale [Line Items]
Marketable securities	167,900
Debt securities, available-for-sale and held-to-maturity, fair value	$ 129,100

XML

Securities - Schedule of Securities in Continuous Unrealized Loss Position (Details) $ in Thousands	Mar. 31, 2024 USD ($) security	Dec. 31, 2023 USD ($) security
Available for sale:
Less Than 12 Months, Number of Securities | security	7	14
Less Than 12 Months, Fair Value	$ 4,714	$ 6,023
Less Than 12 Months, Gross Unrealized Losses	$ (55)	$ (27)
12 Months or More, Number of Securities | security	58	64
12 Months or More, Fair Value	$ 22,618	$ 72,590
12 Months or More, Gross Unrealized Losses	$ (1,684)	$ (1,986)
Total, Number of Securities | security	65	78
Total, Fair Value	$ 27,332	$ 78,613
Total, Gross Unrealized Losses	$ (1,739)	$ (2,013)
Held to maturity:
Less Than 12 Months, Number of Securities | security	0	0
Less Than 12 Months, Fair Value	$ 0	$ 0
Less Than 12 Months, Gross Unrealized Losses	$ 0	$ 0
12 Months or More, Number of Securities | security	86	86
12 Months or More, Fair Value	$ 251,627	$ 253,584
12 Months or More, Gross Unrealized Losses	$ (69,354)	$ (67,134)
Total, Number of Securities | security	86	86
Total, Fair Value	$ 251,627	$ 253,584
Total, Gross Unrealized Losses	$ (69,354)	$ (67,134)
U.S. Treasuries
Available for sale:
Less Than 12 Months, Number of Securities | security	0	0
Less Than 12 Months, Fair Value	$ 0	$ 0
Less Than 12 Months, Gross Unrealized Losses	$ 0	$ 0
12 Months or More, Number of Securities | security	0	3
12 Months or More, Fair Value	$ 0	$ 49,830
12 Months or More, Gross Unrealized Losses	$ 0	$ (218)
Total, Number of Securities | security	0	3
Total, Fair Value	$ 0	$ 49,830
Total, Gross Unrealized Losses	$ 0	$ (218)
U.S. Government Agencies
Available for sale:
Less Than 12 Months, Number of Securities | security		0
Less Than 12 Months, Fair Value		$ 0
Less Than 12 Months, Gross Unrealized Losses		$ 0
12 Months or More, Number of Securities | security		0
12 Months or More, Fair Value		$ 0
12 Months or More, Gross Unrealized Losses		$ 0
Total, Number of Securities | security		0
Total, Fair Value		$ 0
Total, Gross Unrealized Losses		$ 0
Held to maturity:
Less Than 12 Months, Number of Securities | security	0	0
Less Than 12 Months, Fair Value	$ 0	$ 0
Less Than 12 Months, Gross Unrealized Losses	$ 0	$ 0
12 Months or More, Number of Securities | security	29	29
12 Months or More, Fair Value	$ 202,851	$ 204,364
12 Months or More, Gross Unrealized Losses	$ (63,262)	$ (61,532)
Total, Number of Securities | security	29	29
Total, Fair Value	$ 202,851	$ 204,364
Total, Gross Unrealized Losses	$ (63,262)	$ (61,532)
Corporate debt securities
Available for sale:
Less Than 12 Months, Number of Securities | security	1	0
Less Than 12 Months, Fair Value	$ 985	$ 0
Less Than 12 Months, Gross Unrealized Losses	$ (15)	$ 0
12 Months or More, Number of Securities | security	15	15
12 Months or More, Fair Value	$ 14,608	$ 14,471
12 Months or More, Gross Unrealized Losses	$ (1,142)	$ (1,279)
Total, Number of Securities | security	16	15
Total, Fair Value	$ 15,593	$ 14,471
Total, Gross Unrealized Losses	$ (1,157)	$ (1,279)
Held to maturity:
Less Than 12 Months, Number of Securities | security	0	0
Less Than 12 Months, Fair Value	$ 0	$ 0
Less Than 12 Months, Gross Unrealized Losses	$ 0	$ 0
12 Months or More, Number of Securities | security	57	57
12 Months or More, Fair Value	$ 48,776	$ 49,220
12 Months or More, Gross Unrealized Losses	$ (6,092)	$ (5,602)
Total, Number of Securities | security	57	57
Total, Fair Value	$ 48,776	$ 49,220
Total, Gross Unrealized Losses	$ (6,092)	$ (5,602)
Municipal bonds
Available for sale:
Less Than 12 Months, Number of Securities | security	4	12
Less Than 12 Months, Fair Value	$ 1,142	$ 3,417
Less Than 12 Months, Gross Unrealized Losses	$ (9)	$ (6)
12 Months or More, Number of Securities | security	38	41
12 Months or More, Fair Value	$ 5,677	$ 5,895
12 Months or More, Gross Unrealized Losses	$ (373)	$ (366)
Total, Number of Securities | security	42	53
Total, Fair Value	$ 6,819	$ 9,312
Total, Gross Unrealized Losses	$ (382)	$ (372)
Mortgage-backed securities
Available for sale:
Less Than 12 Months, Number of Securities | security	2	2
Less Than 12 Months, Fair Value	$ 2,587	$ 2,606
Less Than 12 Months, Gross Unrealized Losses	$ (31)	$ (21)
12 Months or More, Number of Securities | security	5	5
12 Months or More, Fair Value	$ 2,333	$ 2,394
12 Months or More, Gross Unrealized Losses	$ (169)	$ (123)
Total, Number of Securities | security	7	7
Total, Fair Value	$ 4,920	$ 5,000
Total, Gross Unrealized Losses	$ (200)	$ (144)

XML

Securities - Schedule of Exposure to Bond Issuers that Exceeded 10% of Stockholders' Equity (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Concentration Risk [Line Items]
Amortized Cost	$ 358,653	$ 404,123
Stockholders' Equity, Total
Concentration Risk [Line Items]
Amortized Cost	268,613
Fair Value	205,184
Stockholders' Equity, Total | U.S. Government Treasuries (U.S.)
Concentration Risk [Line Items]
Amortized Cost	0
Fair Value	0
Stockholders' Equity, Total | Federal Home Loan Bank (FHLB)
Concentration Risk [Line Items]
Amortized Cost	32,222
Fair Value	25,894
Stockholders' Equity, Total | Federal Home Loan Mortgage Corporation (Freddie Mac-FHLMC)
Concentration Risk [Line Items]
Amortized Cost	97,538
Fair Value	69,528
Stockholders' Equity, Total | Federal Farm Credit Bank (FFCB)
Concentration Risk [Line Items]
Amortized Cost	138,853
Fair Value	$ 109,762

XML

Loans - Components of Loan Portfolio (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Balance
Total Loans before Unearned Income	$ 2,760,135	$ 2,757,481
Unearned Income	(7,905)	(8,773)
Total loans net of unearned income	$ 2,752,230	$ 2,748,708
As % of Category
As % of Category	100.00%	100.00%
Real Estate
Balance
Total Loans before Unearned Income	$ 2,120,947	$ 2,041,601
As % of Category
As % of Category	76.80%	74.00%
Real Estate | Construction & land development
Balance
Total Loans before Unearned Income	$ 328,090	$ 399,435
As % of Category
As % of Category	11.90%	14.50%
Real Estate | Farmland
Balance
Total Loans before Unearned Income	$ 37,534	$ 32,530
As % of Category
As % of Category	1.30%	1.20%
Real Estate | 1- 4 Family
Balance
Total Loans before Unearned Income	$ 456,659	$ 444,850
As % of Category
As % of Category	16.50%	16.10%
Real Estate | Multifamily
Balance
Total Loans before Unearned Income	$ 165,148	$ 118,921
As % of Category
As % of Category	6.00%	4.30%
Real Estate | Non-farm non-residential
Balance
Total Loans before Unearned Income	$ 1,133,516	$ 1,045,865
As % of Category
As % of Category	41.10%	37.90%
Non-Real Estate
Balance
Total Loans before Unearned Income	$ 639,188	$ 715,880
As % of Category
As % of Category	23.20%	26.00%
Non-Real Estate | Agricultural
Balance
Total Loans before Unearned Income	$ 43,422	$ 41,008
As % of Category
As % of Category	1.60%	1.50%
Non-Real Estate | Commercial and industrial
Balance
Total Loans before Unearned Income	$ 293,292	$ 334,972
As % of Category
As % of Category	10.60%	12.10%
PPP loans fully guaranteed by the SBA	$ 2,600	$ 2,800
Non-Real Estate | Commercial leases
Balance
Total Loans before Unearned Income	$ 253,016	$ 285,415
As % of Category
As % of Category	9.20%	10.40%
Non-Real Estate | Consumer and other
Balance
Total Loans before Unearned Income	$ 49,458	$ 54,485
As % of Category
As % of Category	1.80%	2.00%

XML

Loans - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Receivables [Abstract]
Accrued interest receivable	$ 14,800	$ 13,900
Initial fixed rate period, tranche one	1 year
Initial fixed rate period, tranche two	3 years
Initial fixed rate period, tranche three	5 years
Nonaccrual loans	$ 28,606	$ 25,187

XML

Loans - Fixed and Floating Rate Loans by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing receivables, fixed and floating rate loans by contractual maturity [Abstract]
One year or less	$ 393,761	$ 357,748
More than one to five years	1,039,211	1,140,735
More than five to 15 years	359,074	358,408
Over 15 years	939,483	875,403
Subtotal	2,731,529	2,732,294
Nonaccrual loans	28,606	25,187
Total Loans before Unearned Income	2,760,135	2,757,481
Unearned income	(7,905)	(8,773)
Total Loans Net of Unearned Income	2,752,230	2,748,708
Fixed
Financing receivables, fixed and floating rate loans by contractual maturity [Abstract]
One year or less	271,330	268,864
More than one to five years	715,494	782,754
More than five to 15 years	81,780	88,490
Over 15 years	349,617	334,337
Subtotal	1,418,221	1,474,445
Floating
Financing receivables, fixed and floating rate loans by contractual maturity [Abstract]
One year or less	122,431	88,884
More than one to five years	323,717	357,981
More than five to 15 years	277,294	269,918
Over 15 years	589,866	541,066
Subtotal	$ 1,313,308	$ 1,257,849

XML

Loans - Receivables Past Due (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	$ 2,760,135	$ 2,757,481
Unearned income	(7,905)	(8,773)
Total loans net of unearned income	2,752,230	2,748,708
Recorded Investment 90 Days Accruing	14,658	15,287
Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	61,839	51,385
30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	18,575	10,911
90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	43,264	40,474
Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	2,698,296	2,706,096
Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	2,120,947	2,041,601
Recorded Investment 90 Days Accruing	14,600	14,835
Real Estate | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	44,912	40,614
Real Estate | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	10,384	7,151
Real Estate | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	34,528	33,463
Real Estate | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	2,076,035	2,000,987
Real Estate | Construction & land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	328,090	399,435
Recorded Investment 90 Days Accruing	0	0
Real Estate | Construction & land development | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	2,273	1,811
Real Estate | Construction & land development | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	1,675	1,281
Real Estate | Construction & land development | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	598	530
Real Estate | Construction & land development | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	325,817	397,624
Real Estate | Farmland
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	37,534	32,530
Recorded Investment 90 Days Accruing	0	0
Real Estate | Farmland | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	991	933
Real Estate | Farmland | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	88	97
Real Estate | Farmland | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	903	836
Real Estate | Farmland | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	36,543	31,597
Real Estate | 1- 4 family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	456,659	444,850
Recorded Investment 90 Days Accruing	0	124
Real Estate | 1- 4 family | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	13,278	11,038
Real Estate | 1- 4 family | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	5,121	3,929
Real Estate | 1- 4 family | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	8,157	7,109
Real Estate | 1- 4 family | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	443,381	433,812
Real Estate | Multifamily
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	165,148	118,921
Recorded Investment 90 Days Accruing	0	0
Real Estate | Multifamily | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	537	1,361
Real Estate | Multifamily | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	0	824
Real Estate | Multifamily | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	537	537
Real Estate | Multifamily | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	164,611	117,560
Real Estate | Non-farm non-residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	1,133,516	1,045,865
Recorded Investment 90 Days Accruing	14,600	14,711
Real Estate | Non-farm non-residential | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	27,833	25,471
Real Estate | Non-farm non-residential | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	3,500	1,020
Real Estate | Non-farm non-residential | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	24,333	24,451
Real Estate | Non-farm non-residential | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	1,105,683	1,020,394
Non-Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	639,188	715,880
Recorded Investment 90 Days Accruing	58	452
Non-Real Estate | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	16,927	10,771
Non-Real Estate | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	8,191	3,760
Non-Real Estate | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	8,736	7,011
Non-Real Estate | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	622,261	705,109
Non-Real Estate | Agricultural
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	43,422	41,008
Recorded Investment 90 Days Accruing	58	57
Non-Real Estate | Agricultural | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	1,950	1,666
Non-Real Estate | Agricultural | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	234	240
Non-Real Estate | Agricultural | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	1,716	1,426
Non-Real Estate | Agricultural | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	41,472	39,342
Non-Real Estate | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	293,292	334,972
Recorded Investment 90 Days Accruing	0	395
Non-Real Estate | Commercial and industrial | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	9,998	4,459
Non-Real Estate | Commercial and industrial | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	5,307	2,483
Non-Real Estate | Commercial and industrial | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	4,691	1,976
Non-Real Estate | Commercial and industrial | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	283,294	330,513
Non-Real Estate | Commercial leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	253,016	285,415
Recorded Investment 90 Days Accruing	0	0
Non-Real Estate | Commercial leases | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	3,632	1,799
Non-Real Estate | Commercial leases | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	1,833	0
Non-Real Estate | Commercial leases | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	1,799	1,799
Non-Real Estate | Commercial leases | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	249,384	283,616
Non-Real Estate | Consumer and other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	49,458	54,485
Recorded Investment 90 Days Accruing	0	0
Non-Real Estate | Consumer and other | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	1,347	2,847
Non-Real Estate | Consumer and other | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	817	1,037
Non-Real Estate | Consumer and other | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	530	1,810
Non-Real Estate | Consumer and other | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	$ 48,111	$ 51,638

XML

Loans - Nonaccrual Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	$ 23,556	$ 18,978
Without Related Allowance	5,050	6,209
Total	28,606	25,187
Real Estate
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	17,008	15,188
Without Related Allowance	2,920	3,440
Total	19,928	18,628
Real Estate | Construction & land development
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	598	530
Without Related Allowance	0	0
Total	598	530
Real Estate | Farmland
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	502	511
Without Related Allowance	401	325
Total	903	836
Real Estate | 1- 4 family
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	7,051	5,417
Without Related Allowance	1,106	1,568
Total	8,157	6,985
Real Estate | Multifamily
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	0	0
Without Related Allowance	537	537
Total	537	537
Real Estate | Non-farm non-residential
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	8,857	8,730
Without Related Allowance	876	1,010
Total	9,733	9,740
Non-Real Estate
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	6,548	3,790
Without Related Allowance	2,130	2,769
Total	8,678	6,559
Non-Real Estate | Agricultural
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	1,327	399
Without Related Allowance	331	970
Total	1,658	1,369
Non-Real Estate | Commercial and industrial
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	4,691	1,581
Without Related Allowance	0	0
Total	4,691	1,581
Non-Real Estate | Commercial leases
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	0	0
Without Related Allowance	1,799	1,799
Total	1,799	1,799
Non-Real Estate | Consumer and other
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	530	1,810
Without Related Allowance	0	0
Total	$ 530	$ 1,810

XML

Loans - Credit Exposure of Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	$ 75,769		$ 571,635
Year two	577,646		785,667
Year three	768,123		428,341
Year four	419,575		226,793
Year five	212,201		135,490
Prior	491,740		385,950
Revolving Loans	215,081		223,605
Total Loans before Unearned Income	2,760,135		2,757,481
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Year one	65		627
Year two	566		1,917
Year three	658		953
Year four	485		1,029
Year five	383		28
Prior	128		1,217
Revolving Loans	0		0
Total	2,285	$ 973	5,771
Unearned income	(7,905)		(8,773)
Total loans net of unearned income	2,752,230		2,748,708
Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	73,550		568,228
Year two	572,862		743,019
Year three	736,921		392,315
Year four	384,712		217,245
Year five	203,264		116,225
Prior	447,404		358,286
Revolving Loans	206,288		213,596
Total Loans before Unearned Income	2,625,001		2,608,914
Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	2,219		2,903
Year two	4,286		16,806
Year three	3,940		8,167
Year four	5,375		2,760
Year five	3,694		16,726
Prior	23,245		8,517
Revolving Loans	2,163		2,839
Total Loans before Unearned Income	44,922		58,718
Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		504
Year two	498		25,681
Year three	27,101		27,343
Year four	29,397		6,643
Year five	5,177		2,298
Prior	20,549		18,768
Revolving Loans	6,513		7,053
Total Loans before Unearned Income	89,235		88,290
Doubtful
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		161
Year three	161		516
Year four	91		145
Year five	66		241
Prior	542		379
Revolving Loans	117		117
Total Loans before Unearned Income	977		1,559
Real Estate
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	63,609		431,954
Year two	457,804		605,807
Year three	614,429		295,096
Year four	298,224		158,082
Year five	154,502		123,117
Prior	442,478		341,060
Revolving Loans	89,901		86,485
Total Loans before Unearned Income	2,120,947		2,041,601
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Total	41	171
Real Estate | Construction & land development
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	21,005		135,316
Year two	142,265		142,402
Year three	117,248		76,603
Year four	17,802		3,632
Year five	2,602		8,717
Prior	9,460		13,858
Revolving Loans	17,708		18,907
Total Loans before Unearned Income	328,090		399,435
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	0		0
Revolving Loans	0		0
Total	0	0	0
Real Estate | Construction & land development | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	21,005		134,527
Year two	141,694		140,068
Year three	115,445		75,884
Year four	17,090		3,369
Year five	2,256		8,533
Prior	6,924		11,940
Revolving Loans	17,708		18,907
Total Loans before Unearned Income	322,122		393,228
Real Estate | Construction & land development | Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		789
Year two	571		1,579
Year three	1,115		170
Year four	167		0
Year five	83		90
Prior	1,268		250
Revolving Loans	0		0
Total Loans before Unearned Income	3,204		2,878
Real Estate | Construction & land development | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		716
Year three	649		458
Year four	454		263
Year five	263		94
Prior	1,267		1,668
Revolving Loans	0		0
Total Loans before Unearned Income	2,633		3,199
Real Estate | Construction & land development | Doubtful
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		39
Year three	39		91
Year four	91		0
Year five	0		0
Prior	1		0
Revolving Loans	0		0
Total Loans before Unearned Income	131		130
Real Estate | Farmland
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	247		9,513
Year two	12,615		4,477
Year three	4,457		4,709
Year four	6,018		6,159
Year five	6,041		368
Prior	4,804		3,742
Revolving Loans	3,352		3,562
Total Loans before Unearned Income	37,534		32,530
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	0		0
Revolving Loans	0		0
Total	0	0	0
Real Estate | Farmland | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	247		9,513
Year two	12,615		4,032
Year three	4,018		3,340
Year four	3,316		1,768
Year five	1,727		253
Prior	3,690		2,730
Revolving Loans	3,307		2,162
Total Loans before Unearned Income	28,920		23,798
Real Estate | Farmland | Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		194
Year three	225		0
Year four	0		514
Year five	1,780		0
Prior	469		359
Revolving Loans	0		0
Total Loans before Unearned Income	2,474		1,067
Real Estate | Farmland | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		251
Year three	214		1,369
Year four	2,702		3,877
Year five	2,534		115
Prior	645		653
Revolving Loans	0		1,355
Total Loans before Unearned Income	6,095		7,620
Real Estate | Farmland | Doubtful
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	0		0
Revolving Loans	45		45
Total Loans before Unearned Income	45		45
Real Estate | 1- 4 family
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	15,239		113,991
Year two	113,901		116,230
Year three	116,145		77,107
Year four	75,802		44,667
Year five	43,407		22,512
Prior	72,809		51,616
Revolving Loans	19,356		18,727
Total Loans before Unearned Income	456,659		444,850
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	41		964
Revolving Loans	0		0
Total	41	33	964
Real Estate | 1- 4 family | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	15,239		112,636
Year two	112,290		110,978
Year three	111,489		70,599
Year four	69,718		41,766
Year five	40,707		19,542
Prior	65,440		47,374
Revolving Loans	17,704		17,215
Total Loans before Unearned Income	432,587		420,110
Real Estate | 1- 4 family | Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		1,307
Year two	1,536		2,505
Year three	2,054		749
Year four	448		1,544
Year five	1,102		775
Prior	1,913		997
Revolving Loans	432		667
Total Loans before Unearned Income	7,485		8,544
Real Estate | 1- 4 family | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		48
Year two	75		2,625
Year three	2,480		5,368
Year four	5,636		1,357
Year five	1,598		1,956
Prior	5,132		3,086
Revolving Loans	1,148		773
Total Loans before Unearned Income	16,069		15,213
Real Estate | 1- 4 family | Doubtful
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		122
Year three	122		391
Year four	0		0
Year five	0		239
Prior	324		159
Revolving Loans	72		72
Total Loans before Unearned Income	518		983
Real Estate | Multifamily
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	450		9,945
Year two	8,363		76,217
Year three	85,006		6,121
Year four	45,822		15,131
Year five	14,993		1,877
Prior	4,637		4,496
Revolving Loans	5,877		5,134
Total Loans before Unearned Income	165,148		118,921
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	0		0
Revolving Loans	0		0
Total	0	0	0
Real Estate | Multifamily | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	450		9,945
Year two	8,363		76,217
Year three	85,006		6,121
Year four	45,822		15,131
Year five	14,993		1,877
Prior	1,505		2,311
Revolving Loans	5,854		5,110
Total Loans before Unearned Income	161,993		116,712
Real Estate | Multifamily | Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	2,595		1,648
Revolving Loans	23		24
Total Loans before Unearned Income	2,618		1,672
Real Estate | Multifamily | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	537		537
Revolving Loans	0		0
Total Loans before Unearned Income	537		537
Real Estate | Multifamily | Doubtful
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	0		0
Revolving Loans	0		0
Total Loans before Unearned Income	0		0
Real Estate | Non-farm non-residential
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	26,668		163,189
Year two	180,660		266,481
Year three	291,573		130,556
Year four	152,780		88,493
Year five	87,459		89,643
Prior	350,768		267,348
Revolving Loans	43,608		40,155
Total Loans before Unearned Income	1,133,516		1,045,865
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		138
Year five	0		0
Prior	0		0
Revolving Loans	0		0
Total	0	138	138
Real Estate | Non-farm non-residential | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	24,449		162,234
Year two	178,389		247,182
Year three	272,000		111,054
Year four	133,283		88,039
Year five	87,002		73,797
Prior	327,818		256,032
Revolving Loans	37,365		33,907
Total Loans before Unearned Income	1,060,306		972,245
Real Estate | Non-farm non-residential | Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	2,219		708
Year two	2,025		369
Year three	363		1,014
Year four	131		388
Year five	391		15,846
Prior	16,911		5,191
Revolving Loans	1,040		1,525
Total Loans before Unearned Income	23,080		25,041
Real Estate | Non-farm non-residential | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		247
Year two	246		18,930
Year three	19,210		18,488
Year four	19,366		0
Year five	0		0
Prior	6,039		6,125
Revolving Loans	5,203		4,723
Total Loans before Unearned Income	50,064		48,513
Real Estate | Non-farm non-residential | Doubtful
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		66
Year five	66		0
Prior	0		0
Revolving Loans	0		0
Total Loans before Unearned Income	66		66
Non-Real Estate
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	12,160		139,681
Year two	119,842		179,860
Year three	153,694		133,245
Year four	121,351		68,711
Year five	57,699		12,373
Prior	49,262		44,890
Revolving Loans	125,180		137,120
Total Loans before Unearned Income	639,188		715,880
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Total	2,244	802
Non-Real Estate | Agricultural
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	1,118		2,555
Year two	2,786		10,510
Year three	10,235		3,834
Year four	3,759		1,696
Year five	1,656		1,552
Prior	5,711		4,520
Revolving Loans	18,157		16,341
Total Loans before Unearned Income	43,422		41,008
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	33		0
Year five	0		0
Prior	0		0
Revolving Loans	0		0
Total	33	0	0
Non-Real Estate | Agricultural | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	1,118		2,555
Year two	2,758		10,406
Year three	10,202		3,142
Year four	3,067		1,336
Year five	1,303		1,532
Prior	3,572		2,378
Revolving Loans	18,034		16,259
Total Loans before Unearned Income	40,054		37,608
Non-Real Estate | Agricultural | Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	28		104
Year three	33		0
Year four	0		81
Year five	156		0
Prior	0		0
Revolving Loans	66		25
Total Loans before Unearned Income	283		210
Non-Real Estate | Agricultural | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		0
Year three	0		692
Year four	692		279
Year five	197		20
Prior	2,104		2,100
Revolving Loans	57		57
Total Loans before Unearned Income	3,050		3,148
Non-Real Estate | Agricultural | Doubtful
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	35		42
Revolving Loans	0		0
Total Loans before Unearned Income	35		42
Non-Real Estate | Commercial and industrial
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	2,615		41,213
Year two	34,105		28,120
Year three	19,183		52,657
Year four	50,046		54,333
Year five	44,752		5,640
Prior	35,568		32,380
Revolving Loans	107,023		120,629
Total Loans before Unearned Income	293,292		334,972
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Year one	0		29
Year two	220		791
Year three	124		133
Year four	75		532
Year five	182		0
Prior	26		209
Revolving Loans	0		0
Total	627	44	1,694
Non-Real Estate | Commercial and industrial | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	2,615		41,105
Year two	33,965		27,800
Year three	18,801		48,097
Year four	45,407		53,585
Year five	44,138		5,613
Prior	30,617		27,634
Revolving Loans	106,316		119,886
Total Loans before Unearned Income	281,859		323,720
Non-Real Estate | Commercial and industrial | Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		63
Year two	95		37
Year three	46		4,382
Year four	4,444		146
Year five	117		0
Prior	62		53
Revolving Loans	602		598
Total Loans before Unearned Income	5,366		5,279
Non-Real Estate | Commercial and industrial | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		45
Year two	45		283
Year three	336		178
Year four	195		602
Year five	497		27
Prior	4,722		4,531
Revolving Loans	105		145
Total Loans before Unearned Income	5,900		5,811
Non-Real Estate | Commercial and industrial | Doubtful
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	167		162
Revolving Loans	0		0
Total Loans before Unearned Income	167		162
Non-Real Estate | Commercial leases
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	5,575		74,456
Year two	63,385		131,232
Year three	116,204		69,212
Year four	61,468		6,087
Year five	5,440		4,428
Prior	944		0
Revolving Loans	0		0
Total Loans before Unearned Income	253,016		285,415
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	0		0
Revolving Loans	0		0
Total	0	0	0
Non-Real Estate | Commercial leases | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	5,575		74,456
Year two	63,385		117,566
Year three	112,573		67,615
Year four	61,468		6,087
Year five	5,440		4,428
Prior	944		0
Revolving Loans	0		0
Total Loans before Unearned Income	249,385		270,152
Non-Real Estate | Commercial leases | Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		11,867
Year three	0		1,597
Year four	0		0
Year five	0		0
Prior	0		0
Revolving Loans	0		0
Total Loans before Unearned Income	0		13,464
Non-Real Estate | Commercial leases | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		1,799
Year three	3,631		0
Year four	0		0
Year five	0		0
Prior	0		0
Revolving Loans	0		0
Total Loans before Unearned Income	3,631		1,799
Non-Real Estate | Commercial leases | Doubtful
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Year five	0		0
Prior	0		0
Revolving Loans	0		0
Total Loans before Unearned Income	0		0
Non-Real Estate | Consumer and other
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	2,852		21,457
Year two	19,566		9,998
Year three	8,072		7,542
Year four	6,078		6,595
Year five	5,851		753
Prior	7,039		7,990
Revolving Loans	0		150
Total Loans before Unearned Income	49,458		54,485
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Year one	65		598
Year two	346		1,126
Year three	534		820
Year four	377		359
Year five	201		28
Prior	61		44
Revolving Loans	0		0
Total	1,584	$ 758	2,975
Non-Real Estate | Consumer and other | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	2,852		21,257
Year two	19,403		8,770
Year three	7,387		6,463
Year four	5,541		6,164
Year five	5,698		650
Prior	6,894		7,887
Revolving Loans	0		150
Total Loans before Unearned Income	47,775		51,341
Non-Real Estate | Consumer and other | Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		36
Year two	31		151
Year three	104		255
Year four	185		87
Year five	65		15
Prior	27		19
Revolving Loans	0		0
Total Loans before Unearned Income	412		563
Non-Real Estate | Consumer and other | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		164
Year two	132		1,077
Year three	581		790
Year four	352		265
Year five	88		86
Prior	103		68
Revolving Loans	0		0
Total Loans before Unearned Income	1,256		2,450
Non-Real Estate | Consumer and other | Doubtful
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		0
Year three	0		34
Year four	0		79
Year five	0		2
Prior	15		16
Revolving Loans	0		0
Total Loans before Unearned Income	$ 15		$ 131

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Allowance for Credit Losses on Loans - Summary of Changes in Allowance for Loan Losses, by Portfolio Type (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Allowance for Loan and Lease Losses [Roll Forward]
Beginning allowance	$ 30,926	$ 23,518	$ 23,518
ASC 326 Adoption Day 1 Adjustment		8,120
Charge-offs	(2,285)	(973)	(5,771)
Recoveries	255	489
Provision	2,554	314
Ending allowance	31,450	31,468	30,926
Real Estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning allowance	24,744	13,102	13,102
ASC 326 Adoption Day 1 Adjustment		7,042
Charge-offs	(41)	(171)
Recoveries	12	37
Provision	(134)	1,781
Ending allowance	24,581	21,791	24,744
Real Estate | Construction & land development
Allowance for Loan and Lease Losses [Roll Forward]
Beginning allowance	5,845	1,232	1,232
ASC 326 Adoption Day 1 Adjustment		1,891
Charge-offs	0	0	0
Recoveries	1	0
Provision	(1,016)	779
Ending allowance	4,830	3,902	5,845
Real Estate | Farmland
Allowance for Loan and Lease Losses [Roll Forward]
Beginning allowance	36	83	83
ASC 326 Adoption Day 1 Adjustment		(39)
Charge-offs	0	0	0
Recoveries	0	0
Provision	27	(6)
Ending allowance	63	38	36
Real Estate | 1- 4 family
Allowance for Loan and Lease Losses [Roll Forward]
Beginning allowance	6,653	1,761	1,761
ASC 326 Adoption Day 1 Adjustment		3,465
Charge-offs	(41)	(33)	(964)
Recoveries	3	3
Provision	(20)	253
Ending allowance	6,595	5,449	6,653
Real Estate | Multifamily
Allowance for Loan and Lease Losses [Roll Forward]
Beginning allowance	1,614	746	746
ASC 326 Adoption Day 1 Adjustment		1,418
Charge-offs	0	0	0
Recoveries	0	0
Provision	163	194
Ending allowance	1,777	2,358	1,614
Real Estate | Non-farm non-residential
Allowance for Loan and Lease Losses [Roll Forward]
Beginning allowance	10,596	9,280	9,280
ASC 326 Adoption Day 1 Adjustment		307
Charge-offs	0	(138)	(138)
Recoveries	8	34
Provision	712	561
Ending allowance	11,316	10,044	10,596
Non-Real Estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning allowance	6,182	10,416	10,416
ASC 326 Adoption Day 1 Adjustment		1,078
Charge-offs	(2,244)	(802)
Recoveries	243	452
Provision	2,688	(1,467)
Ending allowance	6,869	9,677	6,182
Non-Real Estate | Agricultural
Allowance for Loan and Lease Losses [Roll Forward]
Beginning allowance	97	240	240
ASC 326 Adoption Day 1 Adjustment		(98)
Charge-offs	(33)	0	0
Recoveries	10	167
Provision	46	(166)
Ending allowance	120	143	97
Non-Real Estate | Commercial and industrial
Allowance for Loan and Lease Losses [Roll Forward]
Beginning allowance	2,711	2,194	2,194
ASC 326 Adoption Day 1 Adjustment		2,971
Charge-offs	(627)	(44)	(1,694)
Recoveries	115	154
Provision	1,684	(1,021)
Ending allowance	3,883	4,254	2,711
Non-Real Estate | Commercial leases
Allowance for Loan and Lease Losses [Roll Forward]
Beginning allowance	1,948	4,879	4,879
ASC 326 Adoption Day 1 Adjustment		(162)
Charge-offs	0	0	0
Recoveries	0	0
Provision	(564)	(2,280)
Ending allowance	1,384	2,437	1,948
Non-Real Estate | Consumer and other
Allowance for Loan and Lease Losses [Roll Forward]
Beginning allowance	1,426	2,506	2,506
ASC 326 Adoption Day 1 Adjustment		(1,042)
Charge-offs	(1,584)	(758)	(2,975)
Recoveries	118	131
Provision	1,522	860
Ending allowance	1,482	1,697	1,426
Non-Real Estate | Unallocated
Allowance for Loan and Lease Losses [Roll Forward]
Beginning allowance	0	597	597
ASC 326 Adoption Day 1 Adjustment		(591)
Charge-offs	0	0
Recoveries	0	0
Provision	0	1,140
Ending allowance	$ 0	$ 1,146	$ 0

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Allowance for Credit Losses on Loans - Schedule of Allowance and Loans Individually and Collectively Evaluated for Impairment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	$ 6,331	$ 4,122
Allowance Collectively Evaluated	25,119	26,804
Total Allowance for Credit Losses	31,450	30,926	$ 31,468	$ 23,518
Loans Individually Evaluated	66,807	66,962
Loans Collectively Evaluated	2,693,328	2,690,519
Total Loans before Unearned Income	2,760,135	2,757,481
Unearned Income	(7,905)	(8,773)
Total loans net of unearned income	2,752,230	2,748,708
Real Estate
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	3,833	3,363
Allowance Collectively Evaluated	20,748	21,381
Total Allowance for Credit Losses	24,581	24,744	21,791	13,102
Loans Individually Evaluated	57,993	59,233
Loans Collectively Evaluated	2,062,954	1,982,368
Total Loans before Unearned Income	2,120,947	2,041,601
Real Estate | Construction & land development
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	0	0
Allowance Collectively Evaluated	4,830	5,845
Total Allowance for Credit Losses	4,830	5,845	3,902	1,232
Loans Individually Evaluated	1,267	1,389
Loans Collectively Evaluated	326,823	398,046
Total Loans before Unearned Income	328,090	399,435
Real Estate | Farmland
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	0	0
Allowance Collectively Evaluated	63	36
Total Allowance for Credit Losses	63	36	38	83
Loans Individually Evaluated	5,638	5,670
Loans Collectively Evaluated	31,896	26,860
Total Loans before Unearned Income	37,534	32,530
Real Estate | 1- 4 family
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	471	316
Allowance Collectively Evaluated	6,124	6,337
Total Allowance for Credit Losses	6,595	6,653	5,449	1,761
Loans Individually Evaluated	4,316	5,066
Loans Collectively Evaluated	452,343	439,784
Total Loans before Unearned Income	456,659	444,850
Real Estate | Multifamily
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	0	0
Allowance Collectively Evaluated	1,777	1,614
Total Allowance for Credit Losses	1,777	1,614	2,358	746
Loans Individually Evaluated	537	537
Loans Collectively Evaluated	164,611	118,384
Total Loans before Unearned Income	165,148	118,921
Real Estate | Non-farm non-residential
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	3,362	3,047
Allowance Collectively Evaluated	7,954	7,549
Total Allowance for Credit Losses	11,316	10,596	10,044	9,280
Loans Individually Evaluated	46,235	46,571
Loans Collectively Evaluated	1,087,281	999,294
Total Loans before Unearned Income	1,133,516	1,045,865
Non-Real Estate
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	2,498	759
Allowance Collectively Evaluated	4,371	5,423
Total Allowance for Credit Losses	6,869	6,182	9,677	10,416
Loans Individually Evaluated	8,814	7,729
Loans Collectively Evaluated	630,374	708,151
Total Loans before Unearned Income	639,188	715,880
Non-Real Estate | Agricultural
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	15	1
Allowance Collectively Evaluated	105	96
Total Allowance for Credit Losses	120	97	143	240
Loans Individually Evaluated	1,466	1,466
Loans Collectively Evaluated	41,956	39,542
Total Loans before Unearned Income	43,422	41,008
Non-Real Estate | Commercial and industrial
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	2,483	758
Allowance Collectively Evaluated	1,400	1,953
Total Allowance for Credit Losses	3,883	2,711	4,254	2,194
Loans Individually Evaluated	3,717	4,464
Loans Collectively Evaluated	289,575	330,508
Total Loans before Unearned Income	293,292	334,972
Non-Real Estate | Commercial leases
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	0	0
Allowance Collectively Evaluated	1,384	1,948
Total Allowance for Credit Losses	1,384	1,948	2,437	4,879
Loans Individually Evaluated	3,631	1,799
Loans Collectively Evaluated	249,385	283,616
Total Loans before Unearned Income	253,016	285,415
Non-Real Estate | Consumer and other
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	0	0
Allowance Collectively Evaluated	1,482	1,426
Total Allowance for Credit Losses	1,482	1,426	1,697	2,506
Loans Individually Evaluated	0	0
Loans Collectively Evaluated	49,458	54,485
Total Loans before Unearned Income	49,458	54,485
Non-Real Estate | Unallocated
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	0	0
Allowance Collectively Evaluated	0	0
Total Allowance for Credit Losses	0	0	$ 1,146	$ 597
Loans Individually Evaluated	0	0
Loans Collectively Evaluated	0	0
Total Loans before Unearned Income	$ 0	$ 0

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Goodwill and Other Intangible Assets (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 12,900,000	$ 12,900,000
Impairment charges recognized on the company's intangible assets	0
Loan servicing assets	$ 500,000	$ 500,000
Core Deposits
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period	5 years

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Other Real Estate (ORE) - Schedule of Other Real Estate Owned (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Real Estate Owned Acquired by Foreclosure
Total Other Real Estate Owned and Foreclosed Property	$ 1,284	$ 1,250
Allowance for Other Real Estate Owned losses	0	0
Net Other Real Estate Owned and Foreclosed Property	1,284	1,250
Residential
Real Estate Owned Acquired by Foreclosure
Total Other Real Estate Owned and Foreclosed Property	312	309
Construction & land development
Real Estate Owned Acquired by Foreclosure
Total Other Real Estate Owned and Foreclosed Property	282	251
Non-farm non-residential
Real Estate Owned Acquired by Foreclosure
Total Other Real Estate Owned and Foreclosed Property	$ 690	$ 690

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Other Real Estate (ORE) - Narrative (Details) $ in Millions	Mar. 31, 2024 USD ($)
Real Estate | 1- 4 family
Real Estate [Line Items]
Loans in process of foreclosure	$ 1.3

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Commitments and Contingencies - Notional Amounts of Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Commitments to Extend Credit
Off-balance sheet commitments [Abstract]
Notional value	$ 257,034	$ 304,218
Unfunded Commitments under lines of credit
Off-balance sheet commitments [Abstract]
Notional value	203,631	214,546
Commercial and Standby letters of credit
Off-balance sheet commitments [Abstract]
Notional value	$ 14,544	$ 13,971

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Commitments and Contingencies - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Sep. 30, 2021	Dec. 31, 2023
Loss Contingencies [Line Items]
Off-balance-sheet, credit loss, liability	$ 2,600,000		$ 2,800,000
Case Settled in the Third Quarter of 2021
Loss Contingencies [Line Items]
Litigation settlement, amount		$ 1,100,000
Insurance coverage receivable		$ 900,000
Minimum | Lawsuit Alleging Fault For a Loss Of Funds
Loss Contingencies [Line Items]
Lawsuit alleging fault for a loss of funds with possible loss	0
Maximum | Lawsuit Alleging Fault For a Loss Of Funds
Loss Contingencies [Line Items]
Lawsuit alleging fault for a loss of funds with possible loss	1,500,000
Loss contingency, accrued	0
Unfunded Commitments under lines of credit
Loss Contingencies [Line Items]
Financing receivable, credit loss, reversal	$ 300,000

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Fair Value Measurements - Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities, available for sale	$ 37,752	$ 83,485
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities, available for sale	37,752	83,485
Fair Value, Measurements, Recurring | Level 1: Quoted Prices in Active Markets For Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities, available for sale	0	49,830
Fair Value, Measurements, Recurring | Level 2: Significant Other Observable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities, available for sale	27,530	23,172
Fair Value, Measurements, Recurring | Level 3: Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities, available for sale	$ 10,222	$ 10,483

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Fair Value Measurements - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Decrease in available for sale securities	$ 49.8

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Fair Value Measurements - Unobservable Input Reconciliation (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Level 3 Changes
Balance, beginning of year	$ 10,483
Total gains or losses (realized/unrealized):
Included in earnings	0
Included in other comprehensive income	69
Purchases, sales, issuances and settlements, net	(330)
Transfers in and/or out of Level 3	0
Balance as of end of period	$ 10,222

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Fair Value Measurements - Nonrecurring (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans individually evaluated for impairment measured at fair value	$ 6,600	$ 8,083
Other real estate owned measured at fair value	1,284	1,250
Level 1: Quoted Prices in Active Markets For Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans individually evaluated for impairment measured at fair value	0	0
Other real estate owned measured at fair value	0	0
Level 2: Significant Other Observable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans individually evaluated for impairment measured at fair value	0	0
Other real estate owned measured at fair value	1,284	1,250
Level 3: Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans individually evaluated for impairment measured at fair value	6,600	8,083
Other real estate owned measured at fair value	$ 0	$ 0

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Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Securities, available for sale	$ 37,752	$ 83,485
Securities, held for maturity	251,627	253,584
Carrying Amount
Assets
Federal funds sold	465	341
Securities, available for sale	37,752	83,485
Securities, held for maturity	320,901	320,638
Loans held for sale	0
Loans, net	2,720,780	2,717,782
Cash surrender value of BOLI	5,898	5,861
Accrued interest receivable	17,339	15,713
Liabilities
Deposits	3,063,876	3,009,094
Short-term advances from Federal Home Loan Bank	0	50,000
Short-term borrowings	0	10,000
Repurchase agreements	6,834	6,297
Accrued interest payable	10,182	11,807
Long-term advances from Federal Home Loan Bank	155,000	155,000
Senior long-term debt	18,102	39,099
Junior subordinated debentures	44,700	15,000
Carrying Amount | Cash and due from banks
Assets
Cash and due from banks	331,592	286,114
Fair Value Measurements
Assets
Federal funds sold	465	341
Securities, available for sale	37,752	83,485
Securities, held for maturity	251,627	253,584
Loans held for sale	0
Loans, net	2,572,245	2,581,979
Cash surrender value of BOLI	5,898	5,861
Accrued interest receivable	17,339	15,713
Liabilities
Deposits	3,069,935	3,001,498
Short-term advances from Federal Home Loan Bank	0	50,000
Short-term borrowings	0	10,000
Repurchase agreements	6,738	6,285
Accrued interest payable	10,182	11,807
Long-term advances from Federal Home Loan Bank	152,481	152,299
Senior long-term debt	18,297	39,304
Junior subordinated debentures	44,700	15,000
Fair Value Measurements | Cash and due from banks
Assets
Cash and due from banks	331,592	286,114
Fair Value Measurements | Level 1
Assets
Federal funds sold	465	341
Securities, available for sale	0	49,830
Securities, held for maturity	0	0
Loans held for sale	0
Loans, net	0	0
Cash surrender value of BOLI	0	0
Accrued interest receivable	0	0
Liabilities
Deposits	0	0
Short-term advances from Federal Home Loan Bank		0
Short-term borrowings	0	0
Repurchase agreements	0	0
Accrued interest payable	0	0
Long-term advances from Federal Home Loan Bank	0	0
Senior long-term debt	0	0
Junior subordinated debentures	0	0
Fair Value Measurements | Level 1 | Cash and due from banks
Assets
Cash and due from banks	331,592	286,114
Fair Value Measurements | Level 2
Assets
Federal funds sold	0	0
Securities, available for sale	27,530	23,172
Securities, held for maturity	251,627	253,584
Loans held for sale	0
Loans, net	0	0
Cash surrender value of BOLI	0	0
Accrued interest receivable	0	0
Liabilities
Deposits	0	0
Short-term advances from Federal Home Loan Bank		0
Short-term borrowings	0	0
Repurchase agreements	0	0
Accrued interest payable	0	0
Long-term advances from Federal Home Loan Bank	0	0
Senior long-term debt	0	0
Junior subordinated debentures	0	0
Fair Value Measurements | Level 2 | Cash and due from banks
Assets
Cash and due from banks	0	0
Fair Value Measurements | Level 3
Assets
Federal funds sold	0	0
Securities, available for sale	10,222	10,483
Securities, held for maturity	0	0
Loans held for sale	0
Loans, net	2,572,245	2,581,979
Cash surrender value of BOLI	5,898	5,861
Accrued interest receivable	17,339	15,713
Liabilities
Deposits	3,069,935	3,001,498
Short-term advances from Federal Home Loan Bank	0	50,000
Short-term borrowings	0	10,000
Repurchase agreements	6,738	6,285
Accrued interest payable	10,182	11,807
Long-term advances from Federal Home Loan Bank	152,481	152,299
Senior long-term debt	18,297	39,304
Junior subordinated debentures	44,700	15,000
Fair Value Measurements | Level 3 | Cash and due from banks
Assets
Cash and due from banks	$ 0	$ 0