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 June 30, 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 August 8, 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 June 30, 2024 and December 31, 2023	4
	Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023	5
	Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023	6
	Consolidated Statements of Shareholders' Equity for the three and six months ended June 30, 2024 and 2023	7
	Consolidated Statements of Cash Flows for the six months ended June 30, 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	50
Item 4.	Controls and Procedures	53
Part II.	Other Information	54
Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	54
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 3.	Defaults Upon Senior Securities	54
Item 4.	Mine Safety Disclosures	54
Item 5.	Other Information	54
Item 6.	Exhibits	55
Signatures		57

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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)	June 30, 2024		December 31, 2023
Assets
Cash and cash equivalents:
Cash and due from banks	$	298,574	$	286,114
Federal funds sold	392		341
Cash and cash equivalents	298,966		286,455
Investment securities:
Available for sale, at fair value (amortized cost of $39,006 and $85,464, respectively)	37,403		83,485
Held to maturity, at cost and net of allowance for credit losses of $80 (estimated fair value of $251,247 and $253,584, respectively)	321,164		320,638
Investment securities	358,567		404,123
Federal Home Loan Bank stock, at cost	12,204		13,390
Loans held for sale	—		—
Loans, net of unearned income	2,833,350		2,748,708
Less: allowance for credit losses	30,287		30,926
Net loans	2,803,063		2,717,782
Premises and equipment, net	69,439		69,792
Goodwill	12,900		12,900
Intangible assets, net	3,881		4,298
Other real estate, net	1,032		1,250
Accrued interest receivable	18,137		15,713
Other assets	37,382		27,069
Total Assets	$	3,615,571	$	3,552,772
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing demand	$	407,607	$	442,755
Interest-bearing demand	1,502,703		1,526,628
Savings	234,306		218,986
Time	898,835		820,725
Total deposits	3,043,451		3,009,094
Short-term advances from Federal Home Loan Bank	60,000		50,000
Short-term borrowings	—		10,000
Repurchase agreements	6,971		6,297
Accrued interest payable	12,991		11,807
Long-term advances from Federal Home Loan Bank	155,000		155,000
Senior long-term debt	17,156		39,099
Junior subordinated debentures	44,715		15,000
Other liabilities	20,143		6,844
Total Liabilities	3,360,427		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	72,317		67,972
Accumulated other comprehensive (loss) income	(12,125)		(12,959)
Total Shareholders' Equity	255,144		249,631
Total Liabilities and Shareholders' Equity	$	3,615,571	$	3,552,772

See Notes to Consolidated Financial Statements

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FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME (unaudited) 

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except share data)	2024		2023		2024		2023
Interest Income:
Loans (including fees)	$	47,552	$	40,290	$	94,470	$	78,439
Deposits with other banks	3,626		1,071		7,102		1,822
Securities (including FHLB stock)	2,473		2,420		4,987		4,807
Total Interest Income	53,651		43,781		106,559		85,068
Interest Expense:
Demand deposits	17,059		15,036		34,035		28,085
Savings deposits	1,327		838		2,554		1,417
Time deposits	10,446		5,224		20,018		8,800
Borrowings	3,577		1,770		6,789		3,552
Total Interest Expense	32,409		22,868		63,396		41,854
Net Interest Income	21,242		20,913		43,163		43,214
Less: Provision for credit losses	6,805		548		9,109		862
Net Interest Income after Provision for Credit Losses	14,437		20,365		34,054		42,352
Noninterest Income:
Service charges, commissions and fees	795		818		1,528		1,603
ATM and debit card fees	804		828		1,568		1,653
Net gains on securities	—		—		—		—
Net gains on sale of loans	10		—		10		12
Net gains on sale of assets	13,207		7		13,213		18
Other	710		1,159		1,515		2,230
Total Noninterest Income	15,526		2,812		17,834		5,516
Noninterest Expense:
Salaries and employee benefits	10,440		9,932		20,340		19,936
Occupancy and equipment expense	2,547		2,219		4,818		4,421
Other	7,622		7,584		14,385		15,544
Total Noninterest Expense	20,609		19,735		39,543		39,901
Income Before Income Taxes	9,354		3,442		12,345		7,967
Less: Provision for income taxes	2,153		766		2,834		1,823
Net Income	7,201		2,676		9,511		6,144
Less: Preferred stock dividends	582		582		1,164		1,164
Net Income Available to Common Shareholders	$	6,619	$	2,094	$	8,347	$	4,980
Per Common Share:
Earnings	$	0.53	$	0.19	$	0.67	$	0.46
Cash dividends paid	$	0.16	$	0.16	$	0.32	$	0.32
Weighted Average Common Shares Outstanding	12,504,717		10,913,029		12,497,313		10,815,454
See Notes to Consolidated Financial Statements

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FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Net Income	$	7,201	$	2,676	$	9,511	$	6,144
Other comprehensive income:
Unrealized (losses) gains on securities:
Unrealized holding gains arising during the period	261		(106)		1,056		418
Reclassification adjustments for (gains) losses included in net income	—		—		—		—
Change in unrealized gains on securities	261		(106)		1,056		418
Tax impact	(55)		22		(222)		(88)
Other comprehensive income	206		(84)		834		330
Comprehensive Income	$	7,407	$	2,592	$	10,345	$	6,474
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
Net income							2,676				2,676
Common stock issued in private placement, 714,287 shares	—		714		9,286		—		—		10,000
Other comprehensive income (loss)									(84)		(84)
Preferred stock dividends							(582)				(582)
Cash dividends on common stock ($0.16 per share)							(1,829)				(1,829)
Balance June 30, 2023 (unaudited)	33,058		11,431		139,379		69,887		(14,898)		238,857
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
Net Income	—		—		—		7,201		—		7,201
Other comprehensive income (loss)	—		—		—		—		206		206
Preferred stock dividends	—		—		—		(582)		—		(582)
Cash dividends on common stock ($0.16 per share)	—		—		—		(2,001)		—		(2,001)
Balance June 30, 2024 (unaudited)	33,058		12,505		149,389		72,317		(12,125)		255,144
See Notes to Consolidated Financial Statements

-7-

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) 

	Six Months Ended June 30,
(in thousands)	2024		2023
Cash Flows From Operating Activities
Net income	$	9,511	$	6,144
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	9,109		862
Depreciation and amortization	2,181		2,020
Amortization/Accretion of investments	206		484
(Gain) loss on sale/call of securities	—		—
(Gain) loss on sale of assets	(13,203)		(30)
Repossessed asset write downs, gains and losses on dispositions	(9)		53
FHLB stock dividends	(397)		(142)
Change in other assets and liabilities, net	2,497		2,322
Net Cash Provided By Operating Activities	9,895		11,713
Cash Flows From Investing Activities
Proceeds from maturities and calls of HTM securities	—		—
Proceeds from maturities, calls and sales of AFS securities	50,606		50,684
Funds invested in AFS securities	(4,200)		—
Funds invested in Federal Home Loan Bank stock	(1,599)		(3,656)
Proceeds from sale/redemption of Federal Home Loan Bank stock	3,182		2,425
Net increase in loans	(95,476)		(72,392)
Purchase of premises and equipment	(2,892)		(4,362)
Proceeds from sales of premises and equipment	14,816		276
Proceeds from sales of other real estate owned	295		60
Net Cash Used In Investing Activities	(35,268)		(26,965)
Cash Flows From Financing Activities
Net increase in deposits	34,357		43,627
Net (decrease) increase in federal funds purchased and short-term borrowings	674		(89,033)
Proceeds from long-term borrowings	—		120,000
Repayment of long-term borrowings	(22,015)		(1,625)
Proceeds from subordinated debentures	29,700		—
Proceeds from issuance of common stock	334		10,000
Dividends paid on preferred stock	(1,164)		(1,164)
Dividends paid on common stock	(4,002)		(3,544)
Net Cash Provided By Financing Activities	37,884		78,261
Net Increase (Decrease) In Cash and Cash Equivalents	12,511		63,009
Cash and Cash Equivalents at the Beginning of the Period	286,455		83,219
Cash and Cash Equivalents at the End of the Period	$	298,966	$	146,228
Noncash Activities:
Acquisition of real estate in settlement of loans	$	161	$	1,273
Cash Paid During The Period:
Interest on deposits and borrowed funds	$	62,212	$	39,147
Federal income taxes	$	—	$	2,500
State income taxes	$	—	$	330

 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 June 30, 2024 and for the three and six month periods ended June 30, 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 June 30, 2024 and December 31, 2023 is shown below. 

	June 30, 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		—		(1,111)		15,639		16,750		3		(1,279)		15,474
Municipal bonds	17,167		155		(416)		16,906		13,522		31		(372)		13,181
Mortgage-backed securities	5,089		—		(231)		4,858		5,144		—		(144)		5,000
Total available for sale securities	$	39,006	$	155	$	(1,758)	$	37,403	$	85,464	$	34	$	(2,013)	$	83,485
Held to maturity:
U.S. Government Agencies	$	266,329	$	—	$	(63,618)	$	202,711	$	265,896	$	—	$	(61,532)	$	204,364
Corporate debt securities	54,915		—		(6,379)		48,536		54,822		—		(5,602)		49,220
Total held to maturity securities	$	321,244	$	—	$	(69,997)	$	251,247	$	320,718	$	—	$	(67,134)	$	253,584

The scheduled maturities of securities at June 30, 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 June 30, 2024
(in thousands)	Amortized Cost		Fair Value
Available for sale:
Due in one year or less	$	652	$	649
Due after one year through five years	4,399		4,383
Due after five years through 10 years	21,902		20,864
Over 10 years	6,964		6,649
Subtotal	33,917		32,545
Mortgage-backed securities	5,089		4,858
Total available for sale securities	$	39,006	$	37,403
Held to maturity:
Due in one year or less	$	—	$	—
Due after one year through five years	3,396		3,109
Due after five years through 10 years	138,485		117,982
Over 10 years	179,363		130,156
Total held to maturity securities	$	321,244	$	251,247

At June 30, 2024, $179.7 million of First Guaranty's securities were pledged to secure public funds deposits and borrowings. The pledged securities had a market value of $138.5 million as of June 30, 2024.

Accrued interest receivable on First Guaranty's investment securities was $1.4 million and $1.8 million at June 30, 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 June 30, 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 June 30, 2024.

						At June 30, 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	992		(8)		15	14,647		(1,103)		16	15,639		(1,111)
Municipal bonds	14	4,714		(15)		39	6,308		(401)		53	11,022		(416)
Mortgage-backed securities	2	2,569		(41)		5	2,289		(190)		7	4,858		(231)
Total available for sale securities	17	$	8,275	$	(64)	59	$	23,244	$	(1,694)	76	$	31,519	$	(1,758)
Held to maturity:
U.S. Government Agencies	—	$	—	$	—	29	$	202,711	$	(63,618)	29	$	202,711	$	(63,618)
Corporate debt securities	—	—		—		57	48,536		(6,379)		57	48,536		(6,379)
Total held to maturity securities	—	$	—	$	—	86	$	251,247	$	(69,997)	86	$	251,247	$	(69,997)

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 June 30, 2024, 162 of First Guaranty's debt securities had unrealized losses totaling 20.2% of the individual securities' amortized cost basis and 19.9% of First Guaranty's total amortized cost basis of the investment securities portfolio. 145 of the 162 securities had been in a continuous loss position for over 12 months at such date. The 145 securities had an aggregate amortized cost basis of $346.2 million and an unrealized loss of $71.7 million at June 30, 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 June 30, 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 on securities during the six months ended June 30, 2024 and 2023. There were no provisions for credit losses recognized on securities during the six months ended June 30, 2024 and 2023.

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 June 30, 2024, First Guaranty's exposure to bond issuers that exceeded 10% of shareholders' equity is below: 

	At June 30, 2024
(in thousands)	Amortized Cost		Fair Value
U.S. Government Treasuries (U.S.)	$	—	$	—
Federal Home Loan Bank (FHLB)	32,249		25,729
Federal Home Loan Mortgage Corporation (Freddie Mac-FHLMC)	97,585		69,720
Federal Farm Credit Bank (FFCB)	138,976		109,554
Total	$	268,810	$	205,003

-13-

Note 4. Loans

The following table summarizes the components of First Guaranty's loan portfolio as of June 30, 2024 and December 31, 2023: 

	June 30, 2024				December 31, 2023
(in thousands except for %)	Balance		As % of Category		Balance		As % of Category
Real Estate:
Construction & land development	$	355,216	12.5	%	$	399,435	14.5	%
Farmland	38,493		1.3	%	32,530		1.2	%
1- 4 Family	457,263		16.1	%	444,850		16.1	%
Multifamily	160,256		5.6	%	118,921		4.3	%
Non-farm non-residential	1,164,117		41.0	%	1,045,865		37.9	%
Total Real Estate	2,175,345		76.5	%	2,041,601		74.0	%
Non-Real Estate:
Agricultural	47,852		1.7	%	41,008		1.5	%
Commercial and industrial (1)	300,597		10.6	%	334,972		12.1	%
Commercial leases	269,428		9.5	%	285,415		10.4	%
Consumer and other	47,836		1.7	%	54,485		2.0	%
Total Non-Real Estate	665,713		23.5	%	715,880		26.0	%
Total Loans Before Unearned Income	2,841,058		100.0	%	2,757,481		100.0	%
Unearned income	(7,708)				(8,773)
Total Loans Net of Unearned Income	$	2,833,350			$	2,748,708

(1) Includes PPP loans fully guaranteed by the SBA of $2.3 million and $2.8 million at June 30, 2024 and December 31, 2023, respectively.

Accrued interest receivable on First Guaranty's loans totaled $16.7 million and $13.9 million at June 30, 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 June 30, 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. 

	June 30, 2024						December 31, 2023
(in thousands)	Fixed		Floating		Total		Fixed		Floating		Total
One year or less	$	210,374	$	131,394	$	341,768	$	268,864	$	88,884	$	357,748
More than one to five years	725,809		332,564		1,058,373		782,754		357,981		1,140,735
More than five to 15 years	79,759		306,513		386,272		88,490		269,918		358,408
Over 15 years	380,859		611,461		992,320		334,337		541,066		875,403
Subtotal	$	1,396,801	$	1,381,932	2,778,733		$	1,474,445	$	1,257,849	2,732,294
Nonaccrual loans					62,325						25,187
Total Loans Before Unearned Income					2,841,058						2,757,481
Unearned income					(7,708)						(8,773)
Total Loans Net of Unearned Income					$	2,833,350					$	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 June 30, 2024 and December 31, 2023: 

	As of June 30, 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	$	2,298	$	2,314	$	4,612	$	350,604	$	355,216	$	—
Farmland	425		666		1,091		37,402		38,493		—
1- 4 family	8,775		7,977		16,752		440,511		457,263		77
Multifamily	3,978		537		4,515		155,741		160,256		—
Non-farm non-residential	29,075		41,748		70,823		1,093,294		1,164,117		122
Total Real Estate	44,551		53,242		97,793		2,077,552		2,175,345		199
Non-Real Estate:
Agricultural	565		1,379		1,944		45,908		47,852		—
Commercial and industrial	1,402		4,084		5,486		295,111		300,597		—
Commercial leases	—		3,552		3,552		265,876		269,428		—
Consumer and other	1,024		267		1,291		46,545		47,836		—
Total Non-Real Estate	2,991		9,282		12,273		653,440		665,713		—
Total Loans Before Unearned Income	$	47,542	$	62,524	$	110,066	$	2,730,992	$	2,841,058	$	199
Unearned income									(7,708)
Total Loans Net of Unearned Income									$	2,833,350

 

	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 $62.3 million and $25.2 million of nonaccrual loans at June 30, 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 June 30, 2024
(in thousands)	With Related Allowance		Without Related Allowance		Total
Real Estate:
Construction & land development	$	1,945	$	369	$	2,314
Farmland	265		401		666
1- 4 family	6,444		1,456		7,900
Multifamily	—		537		537
Non-farm non-residential	3,573		38,053		41,626
Total Real Estate	12,227		40,816		53,043
Non-Real Estate:
Agricultural	754		625		1,379
Commercial and industrial	3,460		624		4,084
Commercial leases	—		3,552		3,552
Consumer and other	267		—		267
Total Non-Real Estate	4,481		4,801		9,282
Total Nonaccrual Loans	$	16,708	$	45,617	$	62,325

	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 June 30, 2024
	Term Loans by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior	Revolving Loans		Total
Real Estate:
Construction & land development:
Pass	$	32,123	$	136,823	$	124,746	$	18,402	$	1,826	7,571	$	17,079	$	338,570
Special Mention	—		180		408		164		83		296	—		1,131
Substandard	6,132		5,951		1,340		452		263		1,287	—		15,425
Doubtful	—		—		—		90		—		—	—		90
Total Construction & land development	38,255		142,954		126,494		19,108		2,172		9,154	17,079		355,216
Current period gross charge-offs	—		—		39		—		—		—	—		39
Farmland
Pass	1,022		12,489		3,959		3,316		1,682		3,556	3,634		29,658
Special Mention	—		—		214		—		1,780		178	807		2,979
Substandard	—		—		—		2,667		2,552		637	—		5,856
Doubtful	—		—		—		—		—		—	—		—
Total Farmland	1,022		12,489		4,173		5,983		6,014		4,371	4,441		38,493
Current period gross charge-offs	—		—		258		—		—		—	—		258
1- 4 family
Pass	36,519		105,531		102,692		67,515		39,471		61,994	17,768		431,490
Special Mention	337		1,516		1,552		368		1,096		1,971	472		7,312
Substandard	—		4,141		2,638		4,593		1,595		4,716	380		18,063
Doubtful	—		—		72		—		—		253	73		398
Total 1- 4 family	36,856		111,188		106,954		72,476		42,162		68,934	18,693		457,263
Current period gross charge-offs	—		—		50		59		—		664	—		773
Multifamily
Pass	450		7,578		75,013		47,967		14,856		1,000	1,066		147,930
Special Mention	—		—		7,063		—		—		2,595	22		9,680
Substandard	—		—		2,109		—		—		537	—		2,646
Doubtful	—		—		—		—		—		—	—		—
Total Multifamily	450		7,578		84,185		47,967		14,856		4,132	1,088		160,256
Current period gross charge-offs	—		—		—		—		—		—	—		—
Non-farm non-residential
Pass	65,262		179,120		245,127		109,042		86,100		317,168	44,387		1,046,206
Special Mention	2,508		3,107		409		24,681		388		16,858	2,127		50,078
Substandard	1,452		1,655		37,156		19,367		—		4,978	3,159		67,767
Doubtful	—		—		—		—		66		—	—		66
Total non-farm non-residential	69,222		183,882		282,692		153,090		86,554		339,004	49,673		1,164,117
Current period gross charge-offs	—		3,789		—		—		331		—	—		4,120
Total Real Estate	145,805		458,091		604,498		298,624		151,758		425,595	90,974		2,175,345
Non-Real Estate:
Agricultural
Pass	1,376		3,417		8,356		3,027		1,189		3,520	21,807		42,692
Special Mention	—		25		1,805		10		143		101	64		2,148
Substandard	147		27		—		692		158		1,958	2		2,984
Doubtful	—		—		—		—		—		28	—		28
Total Agricultural	1,523		3,469		10,161		3,729		1,490		5,607	21,873		47,852
Current period gross charge-offs	—		—		—		33		—		—	—		33
Commercial and industrial
Pass	18,478		29,976		21,867		43,129		43,502		34,518	87,219		278,689

-17-

Special Mention	4,347		561		74		59		120		70		3,672		8,903
Substandard	30		332		243		182		361		2,303		9,554		13,005
Doubtful	—		—		—		—		—		—		—		—
Total Commercial and industrial	22,855		30,869		22,184		43,370		43,983		36,891		100,445		300,597
Current period gross charge-offs	—		302		693		238		2,133		204		—		3,570
Commercial leases
Pass	46,495		64,680		97,199		52,720		4,782		—		—		265,876
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		3,552		—		—		—		—		3,552
Doubtful	—		—		—		—		—		—		—		—
Total Commercial leases	46,495		64,680		100,751		52,720		4,782		—		—		269,428
Current period gross charge-offs	—		—		—		—		—		—		—		—
Consumer and other loans
Pass	5,552		18,015		6,264		4,562		5,198		7,056		—		46,647
Special Mention	—		30		79		124		44		25		—		302
Substandard	25		123		356		242		70		64		—		880
Doubtful	—		—		—		—		—		7		—		7
Total Consumer and other loans	5,577		18,168		6,699		4,928		5,312		7,152		—		47,836
Current period gross charge-offs	143		524		748		536		234		74		—		2,259
Total Non-Real Estate	76,450		117,186		139,795		104,747		55,567		49,650		122,318		665,713
Total Loans
Pass	207,277		557,629		685,223		349,680		198,606		436,383		192,960		2,627,758
Special Mention	7,192		5,419		11,604		25,406		3,654		22,094		7,164		82,533
Substandard	7,786		12,229		47,394		28,195		4,999		16,480		13,095		130,178
Doubtful	—		—		72		90		66		288		73		589
Total Loans Before Unearned Income	$	222,255	$	575,277	$	744,293	$	403,371	$	207,325	$	475,245	$	213,292	$	2,841,058
Unearned income															(7,708)
Total Loans Net of Unearned Income															$	2,833,350
Total Current Period Gross Charge-offs	$	143	$	4,615	$	1,788	$	866	$	2,698	$	942	$	—	$	11,052

	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 six months ended June 30, 2024 and 2023 are as follows: 

	For the Six Months Ended June 30,
	2024
(in thousands)	Beginning Allowance (12/31/2023)		Charge-offs		Recoveries		Provision		Ending Allowance (6/30/2024)
Real Estate:
Construction & land development	$	5,845	$	(39)	$	1	$	(919)	$	4,888
Farmland	36		(258)		—		247		25
1- 4 family	6,653		(773)		7		763		6,650
Multifamily	1,614		—		—		101		1,715
Non-farm non-residential	10,596		(4,120)		21		2,440		8,937
Total Real Estate	24,744		(5,190)		29		2,632		22,215
Non-Real Estate:
Agricultural	97		(33)		18		20		102
Commercial and industrial	2,711		(3,570)		126		2,515		1,782
Commercial leases	1,948		—		—		(50)		1,898
Consumer and other	1,426		(2,259)		331		3,154		2,652
Unallocated	—		—		—		1,638		1,638
Total Non-Real Estate	6,182		(5,862)		475		7,277		8,072
Total	$	30,926	$	(11,052)	$	504	$	9,909	$	30,287

	For the Six Months Ended June 30,
	2023
(in thousands)	Beginning Allowance (12/31/2022)		ASC 326 Adoption Day 1 Adjustment		Charge-offs		Recoveries		Provision		Ending Allowance (6/30/2023)
Real Estate:
Construction & land development	$	1,232	$	1,891	$	—	$	—	$	737	$	3,860
Farmland	83		(39)		—		—		3		47
1- 4 family	1,761		3,465		(100)		6		937		6,069
Multifamily	746		1,418		—		—		73		2,237
Non-farm non-residential	9,280		307		(138)		211		278		9,938
Total Real Estate	13,102		7,042		(238)		217		2,028		22,151
Non-Real Estate:
Agricultural	240		(98)		—		407		(407)		142
Commercial and industrial	2,194		2,971		(45)		159		(1,476)		3,803
Commercial leases	4,879		(162)		—		—		(2,525)		2,192
Consumer and other	2,506		(1,042)		(1,265)		216		1,147		1,562
Unallocated	597		(591)		—		—		2,005		2,011
Total Non-Real Estate	10,416		1,078		(1,310)		782		(1,256)		9,710
Total	$	23,518	$	8,120	$	(1,548)	$	999	$	772	$	31,861

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.

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

	As of June 30, 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	$	—	$	4,888	$	4,888	$	1,907	$	353,309	$	355,216
Farmland	—		25		25		5,620		32,873		38,493
1- 4 family	—		6,650		6,650		3,759		453,504		457,263
Multifamily	—		1,715		1,715		537		159,719		160,256
Non-farm non-residential	182		8,755		8,937		40,571		1,123,546		1,164,117
Total Real Estate	182		22,033		22,215		52,394		2,122,951		2,175,345
Non-Real Estate:
Agricultural	11		91		102		1,472		46,380		47,852
Commercial and industrial	152		1,630		1,782		1,487		299,110		300,597
Commercial leases	—		1,898		1,898		3,552		265,876		269,428
Consumer and other	—		2,652		2,652		—		47,836		47,836
Unallocated	—		1,638		1,638		—		—		—
Total Non-Real Estate	163		7,909		8,072		6,511		659,202		665,713
Total	$	345	$	29,942	$	30,287	$	58,905	$	2,782,153	2,841,058
Unearned Income											(7,708)
Total Loans Net of Unearned Income											$	2,833,350

All loans individually evaluated for impairment as of June 30, 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 June 30, 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 June 30, 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 4.8 years at June 30, 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)	June 30, 2024		December 31, 2023
Real Estate Owned Acquired by Foreclosure:
Residential	$	141	$	309
Construction & land development	201		251
Non-farm non-residential	690		690
Total Other Real Estate Owned and Foreclosed Property	1,032		1,250
Allowance for Other Real Estate Owned losses	—		—
Net Other Real Estate Owned and Foreclosed Property	$	1,032	$	1,250

Loans secured by one-to-four family residential properties in the process of foreclosure totaled $1.5 million as of June 30, 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 June 30, 2024 and December 31, 2023:

Contract Amount

(in thousands)	June 30, 2024		December 31, 2023
Commitments to Extend Credit	$	225,503	$	304,218
Unfunded Commitments under lines of credit	$	180,500	$	214,546
Commercial and Standby letters of credit	$	14,683	$	13,971

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

The provision for credit losses on unfunded commitments was a reversal of $0.8 million for the six months ended June 30, 2024. The ACL on off-balance-sheet credit exposures total $2.0 million at June 30, 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 was recorded for recovery by a claim against First Guaranty's insurer. During the second quarter of 2024, First Guaranty received $0.5 million of the $0.9 million receivable. The remaining $0.4 million was written off. 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.

-24-

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 June 30, 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 June 30, 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)	June 30, 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	27,375		23,172
Level 3: Significant Unobservable Inputs	10,028		10,483
Securities available for sale measured at fair value	$	37,403	$	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 June 30, 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 June 30, 2024. There were no transfers between Level 1 and 2 securities available for sale from December 31, 2023 to June 30, 2024.

-25-

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

	Level 3 Changes
(in thousands)	June 30, 2024
Balance, beginning of year	$	10,483
Total gains or losses (realized/unrealized):
Included in earnings	—
Included in other comprehensive income	14
Purchases, sales, issuances and settlements, net	(469)
Transfers in and/or out of Level 3	—
Balance as of end of period	$	10,028

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 June 30, 2024.

The following table measures financial assets and financial liabilities measured at fair value on a non-recurring basis as of June 30, 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 June 30, 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	4,663		8,083
Loans individually evaluated for impairment measured at fair value	$	4,663	$	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	303		1,250
Level 3: Significant Unobservable Inputs	729		—
Other real estate owned measured at fair value	$	1,032	$	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.

-27-

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 June 30, 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 June 30, 2024 were as follows:

	Fair Value Measurements at June 30, 2024 Using
(in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Assets
Cash and due from banks	$	298,574	$	298,574	$	—	$	—	$	298,574
Federal funds sold	392		392		—		—		392
Securities, available for sale	37,403		—		27,375		10,028		37,403
Securities, held for maturity	321,164		—		251,247		—		251,247
Loans held for sale	—		—		—		—		—
Loans, net	2,803,063		—		—		2,650,629		2,650,629
Cash surrender value of BOLI	5,935		—		—		5,935		5,935
Accrued interest receivable	18,137		—		—		18,137		18,137
Liabilities
Deposits	$	3,043,451	$	—	$	—	$	3,041,490	3,041,490
Short-term advances from Federal Home Loan Bank	60,000						60,000		60,000
Short-term borrowings	—		—		—		—		—
Repurchase agreements	6,971		—		—		6,956		6,956
Accrued interest payable	12,991		—		—		12,991		12,991
Long-term advances from Federal Home Loan Bank	155,000		—		—		153,791		153,791
Senior long-term debt	17,156		—		—		17,289		17,289
Junior subordinated debentures	44,715		—		—		44,715		44,715

-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 June 30, 2024 and for the three and six months ended June 30, 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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Second Quarter and Six Months Ended June 30, 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.

Key developments and financial highlights for the second quarter and six months ended June 30, 2024 are as follows:

Key Developments

•On July 23, 2024, First Guaranty announced changes to its business strategy. The changes include slowing the trajectory of the Bank’s asset growth, further increasing the capital position, and working with leaner staff while utilizing automation and technological advances. First Guaranty has reduced staff by 71 positions. This reduction represents approximately 15% of the Bank’s workforce. Each of the affected employees will receive 60 days of pay, payment for their unused vacation time, their elected healthcare coverage through September 30, 2024, and will have the opportunity to apply for open positions within the bank. First Guaranty will continue its other noninterest expense reductions previously undertaken earlier in the year.

•First Guaranty anticipates that the change to the business strategy will generate a reduction in noninterest expense of approximately $12.0 million pre-tax on an annual basis which includes the reduction in staff. The cost savings are anticipated to impact the fourth quarter of 2024 by about $2.0 million pre-tax. It is anticipated that about $3.0 million in pre-tax savings will be realized per quarter for 2025.

•First Guaranty’s Board of Directors anticipates paying a quarterly cash dividend of $0.08 per share for the third and fourth quarters of 2024.

•As previously announced, on June 28, 2024, the Bank consummated a sale-leaseback transaction relating to two stand-alone branches and a portion of the headquarters building which also contains a branch (collectively, the “Properties”). The aggregate cash purchase price was $14.7 million. The sale-leaseback transaction resulted in a pre-tax gain of approximately $13.3 million, or $10.5 million after tax. Aggregate first full year of rent expense under the Lease Agreements will be approximately $1.3 million pre-tax, or $1.0 million after tax.

Financial Highlights

•Total assets increased $62.8 million and were $3.6 billion at June 30, 2024 and December 31, 2023. Total loans at June 30, 2024 were $2.8 billion, an increase of $84.6 million, or 3.1%, compared with December 31, 2023. Total deposits were $3.0 billion at June 30, 2024, an increase of $34.4 million, or 1.1%, compared with December 31, 2023. Retained earnings were $72.3 million at June 30, 2024, an increase of $4.3 million compared to $68.0 million at December 31, 2023. Shareholders' equity was $255.1 million and $249.6 million at June 30, 2024 and December 31, 2023, respectively.

•Net income for the second quarter of 2024 and 2023 was $7.2 million and $2.7 million, respectively, an increase of $4.5 million or 169.1%. Net income for the six months ended June 30, 2024 and 2023 was $9.5 million and $6.1 million, respectively, an increase of $3.4 million or 54.8%.

•Earnings per common share were $0.53 and $0.19 for the second quarter of 2024 and 2023, respectively, and $0.67 and $0.46 for the six months ended June 30, 2024 and 2023, respectively. Total weighted average shares outstanding were 12,504,717 and 10,913,029 for the second quarter of 2024 and 2023, respectively, and 12,497,313 and 10,815,454 for the six months ended June 30, 2024 and 2023, respectively. The change in shares was due to the issuance of 44,341 and 29,293 shares of common stock under the Equity Bonus Plan during the fourth quarter of 2023 and the first quarter of 2024, respectively, and the issuance of 1,714,287 shares of common stock under private placement in 2023.

•The allowance for credit losses was 1.07% of total loans at June 30, 2024 compared to 1.13% at December 31, 2023.

•Net interest income for the second quarter of 2024 was $21.2 million compared to $20.9 million for the same period in 2023. Net interest income was $43.2 million for the six months ended June 30, 2024 and for the same period in 2023.

•Noninterest income for the second quarter of 2024 was $15.5 million compared to $2.8 million for the same period in 2023. Noninterest income for the six months ended June 30, 2024 was $17.8 million compared to $5.5 million for the six months ended June 30, 2023.

•The provision for credit losses for the second quarter of 2024 was $6.8 million compared to $0.5 million for the same period in 2023. The provision for credit losses for the six months ended June 30, 2024 was $9.1 million compared to $0.9 million for the six months ended June 30, 2023.

•First Guaranty had $1.0 million of other real estate owned as of June 30, 2024 compared to $1.3 million at December 31, 2023, respectively.

•The net interest margin for the three months ended June 30, 2024 was 2.48% which was a decrease of 26 basis points from the net interest margin of 2.74% for the same period in 2023. The net interest margin for the six months ended June 30, 2024 was 2.53% which was a decrease of 33 basis points from the net interest margin of 2.86% 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 81.1% at June 30, 2024 compared to 83.6% at June 30, 2023.

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•Investment securities totaled $358.6 million at June 30, 2024, a decrease of $45.6 million when compared to $404.1 million at December 31, 2023. At June 30, 2024, available for sale securities, at fair value, totaled $37.4 million, a decrease of $46.1 million when compared to $83.5 million at December 31, 2023. The decrease in available for sale securities was primarily due to the maturity of low yielding Treasury securities of which the proceeds were subsequently reinvested in higher yielding loans and or cash equivalents. At June 30, 2024, held to maturity securities, at amortized cost and net of the allowance for credit losses totaled $321.2 million, an increase of $0.5 million when compared to $320.6 million at December 31, 2023. The allowance for credit losses for HTM securities was $0.1 million at June 30, 2024 and December 31, 2023.

•Total loans net of unearned income were $2.8 billion at June 30, 2024, a net increase of $84.6 million from December 31, 2023. Total loans net of unearned income are reduced by the allowance for credit losses which totaled $30.3 million at June 30, 2024 and $30.9 million at December 31, 2023, respectively.

•Nonaccrual loans increased $37.1 million to $62.3 million at June 30, 2024 compared to $25.2 million at December 31, 2023. The increase in total nonaccrual loans was concentrated primarily in one commercial real estate relationship that totaled $36.9 million. This relationship is comprised of five loans secured by real estate located in the Midwest. $13.9 million of this relationship was previously reported in 90 day plus but still accruing at December 31, 2023.

•Return on average assets for the three months ended June 30, 2024 and 2023 was 0.81% and 0.34%, respectively. Return on average assets for the six months ended June 30, 2024 and 2023 was 0.54% and 0.39%, respectively. Return on average common equity for the three months ended June 30, 2024 and 2023 was 12.16% and 4.19%, respectively. Return on average common equity for the six months ended June 30, 2024 and 2023 was 7.66% and 4.99%, 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 $17.76 as of June 30, 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 second quarter of 2024 and 2023. First Guaranty has paid 124 consecutive quarterly dividends as of June 30, 2024.

•First Guaranty paid preferred stock dividends of $1.2 million during the first six months of 2024 and 2023.

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Financial Condition

Changes in Financial Condition from December 31, 2023 to June 30, 2024

Assets

Total assets at June 30, 2024 were $3.6 billion, an increase of $62.8 million, or 1.8%, from December 31, 2023. Assets increased primarily due to increases in net loans of $85.3 million and cash and cash equivalents of $12.5 million, partially offset by a decrease in investment securities of $45.6 million at June 30, 2024 compared to December 31, 2023.

Loans

Net loans increased $85.3 million, or 3.1%, to $2.8 billion at June 30, 2024 from December 31, 2023. Non-farm non-residential loan balances increased $118.3 million due to new originations. Multifamily loans increased $41.3 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 $12.4 million primarily due to new originations. Agricultural loans increased $6.8 million due to seasonal activity. Farmland loans increased $6.0 million primarily due to seasonal activity. Consumer and other loans decreased $6.6 million primarily due to paydowns. Commercial lease loan balances decreased $16.0 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 $34.4 million primarily due to paydowns. Construction and land development loans decreased $44.2 million principally due to the conversion of loans to permanent financing. First Guaranty had approximately 3.0% of funded and 1.7% 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 $181.3 million at June 30, 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 $385.1 million in loans related to our Texas markets at June 30, 2024 which was an increase of $9.5 million or 2.5% from $375.7 million at December 31, 2023. First Guaranty anticipates additional growth opportunities in Texas. First Guaranty had $310.2 million in loans related to our new Mideast markets in Kentucky and West Virginia at June 30, 2024 compared to $278.1 million at December 31, 2023. Syndicated loans at June 30, 2024 were $58.9 million, of which $25.1 million were shared national credits. Syndicated loans decreased $17.8 million from $76.7 million at December 31, 2023.

As of June 30, 2024, 76.5% of our loan portfolio was secured by real estate. The largest portion of our loan portfolio, at 41.0% as of June 30, 2024, was non-farm non-residential loans secured by real estate. Approximately 49.7% 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 June 30, 2024. 50.4% of the loan portfolio is scheduled to mature within five years from June 30, 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 June 30, 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 $21.5 million and is located in West Virginia. The largest CRE loan secured by an apartment complex totaled $41.6 million secured by a property located in Louisiana. First Guaranty also holds a $25.9 million loan secured by an apartment complex that is located in Texas. The largest healthcare related loan is a $30.9 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 June 30, 2024 as compared to December 31, 2023 was due to a $41.9 million increase in substandard loans offset by a $1.0 million decrease in doubtful loans. The increase in substandard loans was primarily the result of downgrades during the second quarter of 2024 of two commercial loan relationships, with balances of $24.0 million and $18.2 million, from pass to substandard 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 increased by $23.8 million in 2024. The increase in special mention loans was primarily the result of the downgrade of one commercial and industrial loan relationship from pass to special mention totaling $24.6 million.

Net loans are reduced by the allowance for credit losses which totaled $30.3 million at June 30, 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 $11.1 million during the first six months of 2024 and $1.5 million during the same period in 2023. Recoveries totaled $0.5 million during the first six months of 2024 and $1.0 million during the same period in 2023. The provision for credit losses totaled $9.1 million for the first six months of 2024 and $0.9 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 June 30, 2024 totaled $358.6 million, a decrease of $45.6 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 $37.4 million at June 30, 2024, a decrease of $46.1 million, or 55.2%, 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 $321.2 million at June 30, 2024, an increase of $0.5 million, or 0.2%, compared to $320.6 million at December 31, 2023.

At June 30, 2024, $0.6 million, or 0.2%, of the securities portfolio was scheduled to mature in less than one year. $7.8 million, or 2.2%, 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. $159.3 million, or 44.4%, 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 $186.0 million, or 51.9%, of the total securities portfolio at June 30, 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 June 30, 2024, management believes that the securities portfolio has a forecasted weighted average life of approximately 11.07 years based on the current interest rate environment. The portfolio had an estimated effective duration of 8.77 years at June 30, 2024.

There were no credit related impairment of available for sale securities during the six months ended June 30, 2024. The allowance for credit losses for held to maturity securities was $0.1 million at June 30, 2024 and December 31, 2023.

Nonperforming Assets

Nonperforming assets consist of nonperforming loans and other real estate owned. Nonperforming 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)	June 30, 2024			December 31, 2023
Nonaccrual loans:
Real Estate:
Construction and land development	$	2,314		$	530
Farmland	666			836
1- 4 family	7,900			6,985
Multifamily	537			537
Non-farm non-residential	41,626			9,740
Total Real Estate	53,043			18,628
Non-Real Estate:
Agricultural	1,379			1,369
Commercial and industrial	4,084			1,581
Commercial leases	3,552			1,799
Consumer and other	267			1,810
Total Non-Real Estate	9,282			6,559
Total nonaccrual loans	62,325			25,187
Loans 90 days and greater delinquent & accruing:
Real Estate:
Construction and land development	—			—
Farmland	—			—
1- 4 family	77			124
Multifamily	—			—
Non-farm non-residential	122			14,711
Total Real Estate	199			14,835
Non-Real Estate:
Agricultural	—			57
Commercial and industrial	—			395
Commercial leases	—			—
Consumer and other	—			—
Total Non-Real Estate	—			452
Total loans 90 days and greater delinquent & accruing	199			15,287
Total nonperforming loans	62,524			40,474
Real Estate Owned:
Construction and land development	201			251
Farmland	—			—
1- 4 family	141			309
Multifamily	—			—
Non-farm non-residential	690			690
Total Real Estate Owned	1,032			1,250
Total nonperforming assets	$	63,556		$	41,724
Nonperforming assets to total loans	2.24		%	1.52		%
Nonperforming assets to total assets	1.76		%	1.17		%
Nonperforming loans to total loans	2.21		%	1.47		%
Nonaccrual loans to total loans	2.20		%	0.92		%
Allowance for credit losses to nonaccrual loans	48.60		%	122.79		%
Net loan charge-offs to average loans	0.76		%	0.17		%

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At June 30, 2024, nonperforming assets totaled $63.6 million, or 1.76% of total assets, compared to $41.7 million, or 1.17%, of total assets at December 31, 2023, which represented an increase of $21.8 million, or 52.3%. The increase in nonperforming assets occurred primarily due to an increase in nonaccrual loans, partially offset by a decrease in loans 90 days greater delinquent and still accruing and other real estate owned. 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 $62.3 million at June 30, 2024. The increase in nonaccrual loans was concentrated primarily in non-farm non-residential, commercial and industrial, construction and land development, commercial leases, one-to-four family, and agricultural loans. Nonaccrual loans included $2.1 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 June 30, 2024, loans 90 days or greater delinquent and still accruing totaled $0.2 million, a decrease of $15.1 million compared to $15.3 million at December 31, 2023. The decrease in loans 90 days or greater delinquent and still accruing was attributed to moving those loans to nonaccrual, and was concentrated primarily in non-farm non-residential, commercial and industrial, agricultural, and one-to-four family loans.

Other real estate owned totaled $1.0 million at June 30, 2024, a decrease of $0.2 million compared to $1.3 million at December 31, 2023.

At June 30, 2024, our largest nonperforming assets were comprised of the following nonaccrual loans and 90 days or greater delinquent and still accruing loans: (1) $36.9 million non-farm non-residential loan relationship comprised of five loans secured by real estate in the Midwest; (2) a $2.0 million loan relationship that is classified as purchased credit deteriorated; (3) a commercial lease loan that totaled $1.8 million; (4) a construction and land development loan that totaled $1.7 million; (5) a commercial lease loan that totaled $1.7 million; and (6) a $1.3 million one-to-four family loan relationship.

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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.

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 nonperforming 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 $30.3 million, or 1.07% of total loans, and 48.4% of nonperforming loans at June 30, 2024.

Comparing June 30, 2024 to December 31, 2023, there were changes within the specific components of the allowance balance.

A provision for credit losses of $9.1 million was made during the six months ended June 30, 2024 and $0.9 million for the same period in 2023. The $9.1 million provision made in 2024 included a $0.8 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 six months of 2024 that primarily affected the allocation of the allowance included the following:

•Construction and land development loans decreased during the first six 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 $12.4 million during the first six months of 2024. The allowance decrease related to this portfolio was due to charge-offs and changes in the qualitative analysis of the portfolio.

•Multifamily loans increased during the first six months of 2024. The allowance related to this portfolio was increased due to the growth in the portfolio which increased by $41.3 million during the first three months of 2024.

•Non-farm non-residential loans increased by $118.3 million during the first six months of 2024. The allowance decrease related to this portfolio was due to charge-offs and changes in the qualitative analysis of the portfolio.

•Commercial and industrial loans decreased during the first six months of 2024. The allowance decrease related to this portfolio was due to charge-offs and changes in the qualitative analysis of the portfolio.

•Commercial leases decreased during the first six months of 2024 from $285.4 million at December 31, 2023 to $269.4 million at June 30, 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 six months of 2024. The increase in the related loan loss allowance balance was due primarily to charge-off and qualitative analysis of the portfolio.

First Guaranty charged off $11.1 million in loan balances during the first six months of 2024. The details of the $11.1 million in charged-off loans were as follows:

1.First Guaranty charged off $2.3 million in consumer loans during the first six months of 2024. The consumer loan charge offs included $1.1 million of loans secured by automobiles or equipment and $1.2 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 June 30, 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 June 30, 2024.

4.First Guaranty charged off $3.8 million on a loan relationship associated with a restaurant supply business located in Louisiana during the second quarter of 2024. This loan was secured by real estate, equipment, and inventory. This loan had a previous specific reserve of $2.5 million as of March 31, 2024. This loan had no remaining principal balance at June 30, 2024.

5.First Guaranty charged off a $1.8 million commercial and industrial loan that was originated under the Main Street Lending Program during the second quarter of 2024. The $1.8 million was the unguaranteed retained portion of the loan. This loan had a previous allocation in the reserve of $1.8 million at March 31, 2024. This loan had no remaining principal balance at June 30, 2024.

6.First Guaranty charged off $0.6 million on a real estate secured loan located in Louisiana during the second quarter of 2024. This was an acquired loan from the Union Bank acquisition and was secured by rental properties. This loan had a remaining principal balance of $0.4 million at June 30, 2024.

7.First Guaranty charged off $0.4 million on a commercial and industrial SBA loan relationship during the second quarter of 2024. This relationship had a remaining principal balance of $0.6 million at June 30, 2024.

8.First Guaranty charged off $0.3 million on a real estate secured SBA loan during the second quarter of 2024. This loan had a remaining principal balance of $0.9 million at June 30, 2024.

9.Smaller loans and overdrawn deposit accounts comprised the remaining $1.6 million of charge-offs for the first six months of 2024.

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

(in thousands)	Six Months Ended June 30, 2024		Six Months Ended June 30, 2023
Loans:
Average outstanding balance	$	2,784,384	$	2,548,446
Balance at end of period	$	2,833,350	$	2,590,666
Allowance for Credit Losses:
Balance at beginning of year	$	30,926	$	23,518
Adoption of ASC 326	—		8,120
Charge-offs	(11,052)		(1,548)
Recoveries	504		999
Provision	9,909		772
Balance at end of period	$	30,287	$	31,861

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 June 30, 2024, total deposits increased $34.4 million, or 1.1%, to $3.0 billion. Noninterest-bearing demand deposits decreased $35.1 million, or 7.9%, to $407.6 million at June 30, 2024. The decrease in noninterest-bearing demand deposits was primarily concentrated in individual and business noninterest-bearing demand deposits. Interest-bearing demand deposits decreased $23.9 million, or 1.6%, to $1.5 billion at June 30, 2024. The decrease in interest-bearing demand deposits was primarily concentrated in public funds interest-bearing demand deposits. Savings deposits increased $15.3 million, or 7.0%, to $234.3 million at June 30, 2024, primarily related to increases in business and individual savings deposits. Time deposits increased $78.1 million, or 9.5%, to $898.8 million at June 30, 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, select time deposits and other lower cost deposits.

As of June 30, 2024, the aggregate amount of outstanding certificates of deposit in amounts greater than $250,000 was approximately $184.6 million. At June 30, 2024, approximately $46.7 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 $277.4 million at June 30, 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 $849.0 million at June 30, 2024.

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

(in thousands)	June 30, 2024
Time deposits of less than $100,000	$	399,587
Time deposits of $100,000 through $250,000	314,657
Time deposits of more than $250,000	184,591
Total Time Deposits	$	898,835

The following table sets forth the maturity of the time deposits greater than $250,000 at June 30, 2024.

 

(in thousands)	June 30, 2024
Three months or less	$	26,752
Three to six months	50,682
Six months to one year	60,496
One to three years	33,396
More than three years	13,265
Total Time Deposits greater than $250,000	$	184,591

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Public funds deposits totaled $1.2 billion at June 30, 2024 and December 31, 2023. Public funds time deposits totaled $51.7 million at June 30, 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 invest these deposits more efficiently in higher yielding loans to improve the net interest margin and earnings. Total public funds collateralized by reciprocal deposit insurance programs decreased to $565.0 million at June 30, 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 %)	June 30, 2024			December 31, 2023
Public Funds:
Noninterest-bearing Demand	$	6,525		$	6,471
Interest-bearing Demand	1,081,474			1,090,527
Savings	47,880			46,606
Time	51,705			50,934
Total Public Funds	$	1,187,584		$	1,194,538
Total Deposits	$	3,043,451		$	3,009,094
Total Public Funds as a percent of Total Deposits	39.0		%	39.7		%

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 $67.0 million in short-term borrowings outstanding at June 30, 2024 compared to $66.3 million at December 31, 2023. The short-term borrowings at June 30, 2024 were comprised of short-term Federal Home Loan Bank advances of $60.0 million and repurchase agreements of $7.0 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. At June 30, 2024 First Guaranty had available lines of credit of $20.0 million, with $0 outstanding.

First Guaranty had long-term borrowings from the FHLB that totaled $155.0 million at June 30, 2024 and December 31, 2023. During 2023, 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 a $35.0 million FHLB advance that matures in the third quarter of 2027.

First Guaranty had senior long-term debt totaling $17.2 million as of June 30, 2024 and $39.1 million at December 31, 2023.

First Guaranty had subordinated debt totaling $44.7 million at June 30, 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 $545.3 million in Federal Home Loan Bank letters of credit as of June 30, 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 $255.1 million at June 30, 2024 from $249.6 million at December 31, 2023. The increase in shareholders' equity was principally the result of an increase of $4.3 million in retained earnings, $0.3 million in surplus and a decrease of $0.8 million in accumulated other comprehensive loss. The $4.3 million increase in retained earnings was primarily due to net income of $9.5 million during the six months ended June 30, 2024, partially offset by $4.0 million in cash dividends paid on shares of our common stock and $1.2 million in cash dividends paid on shares of our preferred stock. 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 six months ended June 30, 2024.

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Results of Operations for the Second Quarter Ended June 30, 2024 and 2023

Performance Summary

Three months ended June 30, 2024 compared to the three months ended June 30, 2023. Net income for the three months ended June 30, 2024 was $7.2 million, an increase of $4.5 million, or 169.1%, from $2.7 million for the three months ended June 30, 2023. The increase in net income for the three months ended June 30, 2024 as compared to the prior year period was the result of several factors. First Guaranty experienced an increase in interest income and an increase in noninterest income. This increased income was partially offset by an increase in interest expense, an increase in the provision for loan losses, and an increase in noninterest expense. 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 income increased primarily due to the net gain on sale of assets related to the sale-leaseback transaction. Factors that offset the increase in net income included an increase in interest expense was due to increases in volume of interest-bearing liabilities and market interest rates. The increase in the provision was related to changes within the portfolio and charge-offs experienced in the second quarter. Noninterest expense increased primarily due to increased personnel expenses and occupancy expenses. Earnings per common share for the three months ended June 30, 2024 was $0.53 per common share, an increase of 178.9% or $0.34 per common share from $0.19 per common share for the three months ended June 30, 2023.

Six months ended June 30, 2024 compared to the six months ended June 30, 2023. Net income for the six months ended June 30, 2024 was $9.5 million, an increase of $3.4 million, or 54.8%, from $6.1 million for the six months ended June 30, 2023. The increase in net income for the six months ended June 30, 2024 as compared to the prior year period was the result of several factors. First Guaranty experienced an increase in interest income, an increase in noninterest income, and a decrease in noninterest expense. This increased income was partially offset by an increase in interest expense and an increase in the provision for loan losses. Loan interest income increased due to the growth in First Guaranty's loan portfolio and 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 income increased primarily due to the net gain on sale of assets related to the sale-leaseback transaction. Noninterest expense decreased primarily due to decreased personnel expenses, legal and professional fees, marketing, travel and lodging, and data processing. Factors that partially offset the increase in net income included an increase in interest expense was due to increases in volume of interest-bearing liabilities and market interest rates. The increase in the provision was related to changes within the portfolio and charge-offs experienced in 2024. Earnings per common share for the six months ended June 30, 2024 was $0.67 per common share, an increase of 45.7% or $0.21 per common share from $0.46 per common share for the six months ended June 30, 2023.

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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 June 30, 2024 compared to the three months ended June 30, 2023. Net interest income for the three months ended June 30, 2024 and 2023 was $21.2 million and $20.9 million, respectively. The increase in net interest income for the three months ended June 30, 2024 as compared to the prior year period was primarily due to 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, partially offset by 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. For the three months ended June 30, 2024, the average balance of our total interest-earning assets increased by $383.4 million to $3.4 billion due to strong growth in our loan portfolio. The average yield of our interest-earning assets increased by 52 basis points to 6.25% for the three months ended June 30, 2024 from 5.73% for the three months ended June 30, 2023 due to an improved mix of higher yielding assets. For the three months ended June 30, 2024, the average balance of our total interest-bearing liabilities increased by $448.5 million to $2.9 billion primarily due to growth in interest-bearing deposits and borrowings. The average rate of our total interest-bearing liabilities increased by 75 basis points to 4.53% for the three months ended June 30, 2024 from 3.78% for the three months ended June 30, 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 along with the repricing of maturing time deposits to higher market rates. As a result, our net interest rate spread decreased 23 basis points to 1.72% for the three months ended June 30, 2024 from 1.95% for the three months ended June 30, 2023. Our net interest margin decreased 26 basis points to 2.48% for the three months ended June 30, 2024 from 2.74% for the three months ended June 30, 2023.

Six months ended June 30, 2024 compared to the six months ended June 30, 2023. Net interest income for the six months ended June 30, 2024 and 2023 was $43.2 million and $43.2 million, respectively. The decrease in net interest income for the three months ended June 30, 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 six months ended June 30, 2024, the average balance of our total interest-bearing liabilities increased by $458.7 million to $2.9 billion primarily due to growth in interest-bearing deposits and borrowings. The average rate of our total interest-bearing liabilities increased by 94 basis points to 4.46% for the six months ended June 30, 2024 from 3.52% for the six months ended June 30, 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 along with the repricing of maturing time deposits to higher market rates. For the six months ended June 30, 2024, the average balance of our total interest-earning assets increased by $385.5 million to $3.4 billion due to strong growth in our loan portfolio. The average yield of our interest-earning assets increased by 61 basis points to 6.24% for the six months ended June 30, 2024 from 5.63% for the six months ended June 30, 2023 due to an improved mix of higher yielding assets. As a result, our net interest rate spread decreased 33 basis points to 1.78% for the six months ended June 30, 2024 from 2.11% for the six months ended June 30, 2023. Our net interest margin decreased 33 basis points to 2.53% for the six months ended June 30, 2024 from 2.86% for the six months ended June 30, 2023.

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Interest Income

Three months ended June 30, 2024 compared to the three months ended June 30, 2023. Interest income increased $9.9 million, or 22.5%, to $53.7 million for the three months ended June 30, 2024 as compared to the prior year period. First Guaranty's loan portfolio expanded during the second 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 $383.4 million to $3.4 billion for the three months ended June 30, 2024 as compared to the same period in the prior year. The average yield of interest-earning assets increased by 52 basis points to 6.25% for the three months ended June 30, 2024 compared to 5.73% for the three months ended June 30, 2023.

Interest income on securities increased $0.1 million to $2.5 million for the three months ended June 30, 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 30 basis points to 2.68% for the three months ended June 30, 2024 compared to 2.38% for the three months ended June 30, 2023 due to the decrease in lower yielding Treasury securities that matured in 2023. The average balance of securities decreased $36.8 million to $370.9 million for the three months ended June 30, 2024 from $407.7 million for the three months ended June 30, 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 $7.3 million or 18.0%, to $47.6 million for the three months ended June 30, 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 $239.2 million to $2.8 billion for the three months ended June 30, 2024 from $2.6 billion for the three months ended June 30, 2023 largely as a result of new loan originations. The average yield on loans (excluding loans held for sale) increased by 52 basis points to 6.81% for the three months ended June 30, 2024 from 6.29% for the three months ended June 30, 2023 due to the improved mix of loans along with an increase in market interest rates.

Six months ended June 30, 2024 compared to the six months ended June 30, 2023. Interest income increased $21.5 million, or 25.3%, to $106.6 million for the six months ended June 30, 2024 as compared to the prior year period. First Guaranty's loan portfolio expanded during the first six months 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 $385.5 million to $3.4 billion for the six months ended June 30, 2024 as compared to the prior year. The average yield of interest-earning assets increased by 61 basis points to 6.24% for the six months ended June 30, 2024 compared to 5.63% for the six months ended June 30, 2023.

Interest income on securities increased $0.2 million to $5.0 million for the six months ended June 30, 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 2.63% for the six months ended June 30, 2024 compared to 2.32% for the six months ended June 30, 2023 due to the decrease in lower yielding Treasury securities that matured in 2023. The average balance of securities decreased $35.5 million to $381.6 million for the six months ended June 30, 2024 from $417.1 million for the six months ended June 30, 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 $16.0 million or 20.4%, to $94.5 million for the six months ended June 30, 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 $235.9 million to $2.8 billion for the six months ended June 30, 2024 from $2.5 billion for the six months ended June 30, 2023 largely as a result of new loan originations. The average yield on loans (excluding loans held for sale) increased by 61 basis points to 6.82% for the six months ended June 30, 2024 from 6.21% for the six months ended June 30, 2023 due to the improved mix of loans along with an increase in market interest rates.

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Interest Expense

Three months ended June 30, 2024 compared to the three months ended June 30, 2023. Interest expense increased $9.5 million, or 41.7%, to $32.4 million for the three months ended June 30, 2024 from $22.9 million for the three months ended June 30, 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 4.52% for the three months ended June 30, 2024 and 4.14% for the three months ended June 30, 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 142 basis points during the three months ended June 30, 2024 to 4.74% as compared to the prior year period. The increase in the average rate of time deposits was due to changes in market rates as existing time deposits repriced to higher market rates. The average balance of interest-bearing liabilities increased by $448.5 million during the three months ended June 30, 2024 to $2.9 billion as compared to the prior year period. This increase was a result of a $61.0 million increase in the average balance of interest-bearing demand deposits, a $17.1 million increase in the average balance of savings deposits, a $254.3 million increase in the average balance of time deposits, and a $116.1 million increase in the average balance of borrowings.

Six months ended June 30, 2024 compared to the six months ended June 30, 2023. Interest expense increased $21.5 million, or 51.5%, to $63.4 million for the six months ended June 30, 2024 from $41.9 million for the six months ended June 30, 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 4.47% for the six months ended June 30, 2024 and 3.84% for the six months ended June 30, 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 167 basis points during the six months ended June 30, 2024 to 4.64% as compared to the prior year period. The increase in the average rate of time deposits was due to changes in market rates as existing time deposits repriced to higher market rates. The average balance of interest-bearing liabilities increased by $458.7 million during the six months ended June 30, 2024 to $2.9 billion as compared to the prior year period. This increase was a result of a $56.9 million increase in the average balance of interest-bearing demand deposits, a $18.4 million increase in the average balance of savings deposits, a $271.7 million increase in the average balance of time deposits, and a $111.7 million increase in the average balance of borrowings.

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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 June 30, 2024						Three Months Ended June 30, 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	$	271,113	$	3,626	5.38	%	$	90,388	$	1,071	4.75	%
Securities (including FHLB stock)	370,926		2,473		2.68	%	407,689		2,420		2.38	%
Federal funds sold	627		—		—	%	410		—		—	%
Loans held for sale	—		—		—	%	—		—		—	%
Loans, net of unearned income(6)	2,807,234		47,552		6.81	%	2,568,051		40,290		6.29	%
Total interest-earning assets	3,449,900		$	53,651	6.25	%	3,066,538		$	43,781	5.73	%
Noninterest-earning assets:
Cash and due from banks	20,264						18,443
Premises and equipment, net	70,790						59,924
Other assets	30,854						28,958
Total Assets	$	3,571,808					$	3,173,863
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits	$	1,519,363	$	17,059	4.52	%	$	1,458,353	$	15,036	4.14	%
Savings deposits	231,166		1,327		2.31	%	214,055		838		1.57	%
Time deposits	885,871		10,446		4.74	%	631,605		5,224		3.32	%
Borrowings	239,114		3,577		6.02	%	122,969		1,770		5.77	%
Total interest-bearing liabilities	2,875,514		$	32,409	4.53	%	2,426,982		$	22,868	3.78	%
Noninterest-bearing liabilities:
Demand deposits	420,957						496,209
Other	23,342						17,366
Total Liabilities	3,319,813						2,940,557
Shareholders' equity	251,995						233,306
Total Liabilities and Shareholders' Equity	$	3,571,808					$	3,173,863
Net interest income			$	21,242					$	20,913
Net interest rate spread (1)					1.72	%					1.95	%
Net interest-earning assets (2)	$	574,386					$	639,556
Net interest margin (3), (4)					2.48	%					2.74	%
Average interest-earning assets to interest-bearing liabilities					119.98	%					126.35	%

(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 2.47% and 2.74% for the above periods ended June 30, 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 June 30, 2024 and 2023, respectively.

(5)Annualized.

(6)Includes loan fees of $2.0 million and $1.4 million or the above periods ended June 30, 2024 and 2023, respectively.

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	Six Months Ended June 30, 2024						Six Months Ended June 30, 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	$	266,547	$	7,102	5.36	%	$	81,497	$	1,822	4.51	%
Securities (including FHLB stock)	381,570		4,987		2.63	%	417,104		4,807		2.32	%
Federal funds sold	478		—		—	%	421		—		—	%
Loans held for sale	—		—		—	%	—		—		—	%
Loans, net of unearned income(6)	2,784,384		94,470		6.82	%	2,548,446		78,439		6.21	%
Total interest-earning assets	3,432,979		$	106,559	6.24	%	3,047,468		$	85,068	5.63	%
Noninterest-earning assets:
Cash and due from banks	19,650						18,853
Premises and equipment, net	70,445						59,043
Other assets	29,345						27,854
Total Assets	$	3,552,419					$	3,153,218
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits	$	1,530,063	$	34,035	4.47	%	$	1,473,147	$	28,085	3.84	%
Savings deposits	227,562		2,554		2.26	%	209,190		1,417		1.37	%
Time deposits	868,292		20,018		4.64	%	596,575		8,800		2.97	%
Borrowings	233,635		6,789		5.84	%	121,892		3,552		5.88	%
Total interest-bearing liabilities	2,859,552		$	63,396	4.46	%	2,400,804		$	41,854	3.52	%
Noninterest-bearing liabilities:
Demand deposits	420,437						503,216
Other	20,258						15,071
Total Liabilities	3,300,247						2,919,091
Shareholders' equity	252,172						234,127
Total Liabilities and Shareholders' Equity	$	3,552,419					$	3,153,218
Net interest income			$	43,163					$	43,214
Net interest rate spread (1)					1.78	%					2.11	%
Net interest-earning assets (2)	$	573,427					$	646,664
Net interest margin (3), (4)					2.53	%					2.86	%
Average interest-earning assets to interest-bearing liabilities					120.05	%					126.94	%

(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 2.53% and 2.86% for the above periods ended June 30, 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 June 30, 2024 and 2023, respectively.

(5)Annualized.

(6)Includes loan fees of $4.0 million and $2.8 million or the above periods ended June 30, 2024 and 2023, respectively.

-46-

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 June 30, 2024, the provision for credit losses was $6.8 million compared to $0.5 million for the same period in 2023. The $6.8 million included a $0.6 million negative provision for credit losses related to unfunded commitments. Total charge-offs were $8.8 million for the three months ended June 30, 2024 and $0.5 million for the same period in 2023. Charge-offs for the three months ended June 30, 2024 were concentrated in consumer auto and equipment secured loans, unsecured consumer loans, a loan relationship associated with a restaurant supply business located in Louisiana secured by real estate, equipment and inventory, a commercial and industrial loan associated with the Main Street Lending Program, and a real estate secured loan acquired from the Union Bank acquisition. Partially offsetting these charge-offs were recoveries that totaled $0.2 million for the three months ended June 30, 2024 and $0.5 million for the same period in 2023.

For the six months ended June 30, 2024, the provision for credit losses was $9.1 million compared to $0.9 million for the same period in 2023. The $9.1 million provision included a $0.8 million negative provision for credit losses related to unfunded commitments. Total charge-offs were $11.1 million for the six months ended June 30, 2024 and $1.5 million for the same period in 2023. Charge-offs for the six months ended June 30, 2024 were concentrated in consumer auto and equipment secured loans, unsecured consumer loans, a loan relationship associated with a restaurant supply business located in Louisiana secured by real estate, equipment and inventory, and a commercial and industrial loan associated with the Main Street Lending Program. Partially offsetting these charge-offs were recoveries that totaled $0.5 million for the six months ended June 30, 2024 and $1.0 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 nonperforming 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 $15.5 million for the three months ended June 30, 2024, an increase of $12.7 million from $2.8 million for the three months ended June 30, 2023. The increase was primarily due to increased gains on sale of assets associated with the sale-leaseback transaction during the second quarter of 2024. Service charges, commissions and fees totaled $0.8 million for the three months ended June 30, 2024 and 2023. ATM and debit card fees totaled $0.8 million for the three months ended June 30, 2024 and 2023. Net securities losses were $0 for the three months ended June 30, 2024 and 2023. Net gains on the sale of loans were $10,000 for the three months ended June 30, 2024 compared to $0 for the same period in 2023. Net gains on the sale of assets were $13.2 million for the three months ended June 30, 2024 compared to $7,000 for the same period in 2023. Other noninterest income totaled $0.7 million for the three months ended June 30, 2024 compared to $1.2 million for the same period in 2023.

Noninterest income totaled $17.8 million for the six months ended June 30, 2024, an increase of $12.3 million from $5.5 million for the six months ended June 30, 2023. The increase was primarily due to increased gains on sale of assets associated with the sale-leaseback transaction during the second quarter of 2024. Service charges, commissions and fees totaled $1.5 million for the six months ended June 30, 2024 compared to $1.6 million for the same period in 2023. ATM and debit card fees totaled $1.6 million for the six months ended June 30, 2024 compared to $1.7 million for the same period in 2023. Net securities losses were $0 for the six months ended June 30, 2024 and 2023. Net gains on the sale of loans were $10,000 for the six months ended June 30, 2024 compared to $12,000 for the same period in 2023. Net gains on the sale of assets were $13.2 million for the six months ended June 30, 2024 compared to $18,000 for the same period in 2023. Other noninterest income totaled $1.5 million for the six months ended June 30, 2024 compared to $2.2 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 $20.6 million for the three months ended June 30, 2024 and $19.7 million for the three months ended June 30, 2023. Salaries and benefits expense totaled $10.4 million for the three months ended June 30, 2024 and $9.9 million for the three months ended June 30, 2023. Occupancy and equipment expense totaled $2.5 million for the three months ended June 30, 2024 and $2.2 million for the same period in 2023. Other noninterest expense totaled $7.6 million for the three months ended June 30, 2024 and $7.6 million for the same period in 2023.

Noninterest expense totaled $39.5 million for the six months ended June 30, 2024 and $39.9 million for the six months ended June 30, 2023. Salaries and benefits expense totaled $20.3 million for the six months ended June 30, 2024 and $19.9 million for the six months ended June 30, 2023. Occupancy and equipment expense totaled $4.8 million for the six months ended June 30, 2024 and $4.4 million for the same period in 2023. Other noninterest expense totaled $14.4 million for the six months ended June 30, 2024 and $15.5 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 June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Other noninterest expense:
Legal and professional fees	$	1,504	$	1,358	$	2,477	$	3,534
Data processing	406		531		783		1,062
ATM fees	394		426		813		823
Marketing and public relations	370		481		703		1,009
Taxes - sales, capital, and franchise	607		545		1,211		1,105
Operating supplies	105		202		206		440
Software expense and amortization	1,367		1,164		2,620		2,404
Travel and lodging	260		387		487		788
Telephone	137		84		242		169
Amortization of core deposit intangibles	174		174		348		348
Donations	108		256		183		426
Net costs from other real estate and repossessions	179		92		383		119
Regulatory assessment	989		946		1,922		1,436
Other	1,022		938		2,007		1,881
Total other noninterest expense	$	7,622	$	7,584	$	14,385	$	15,544

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 June 30, 2024 and 2023 was $2.2 million and $0.8 million, respectively. The provision for income taxes increased due to an increase in income before income taxes. First Guaranty's statutory tax rate was 21.0% for the three months ended June 30, 2024 and 2023.

The provision for income taxes for the six months ended June 30, 2024 and 2023 was $2.8 million and $1.8 million, respectively. The provision for income taxes increased due to an increase in income before income taxes. First Guaranty's statutory tax rate was 21.0% for the six months ended June 30, 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 $299.0 million at June 30, 2024 compared to $286.5 million at December 31, 2023. Loans maturing within one year or less at June 30, 2024 totaled $341.8 million compared to $357.7 million at December 31, 2023. At June 30, 2024, time deposits maturing within one year or less totaled $533.4 million compared to $503.7 million at December 31, 2023. Time deposits maturing after one year through three years totaled $235.1 million at June 30, 2024 compared to $214.0 million at December 31, 2023. Time deposits maturing after three years totaled $130.4 million at June 30, 2024 compared to $103.0 million at December 31, 2023. First Guaranty's held to maturity ("HTM") securities portfolio at June 30, 2024 was $321.2 million, or 89.6% 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 $37.4 million, or 10.4% of the investment portfolio as of June 30, 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 $310.7 million and $259.6 million at June 30, 2024 and December 31, 2023, respectively with $215.0 million in FHLB advances outstanding at June 30, 2024 compared to $205.0 million at December 31, 2023, respectively. The advances outstanding at June 30, 2024 were comprised of long-term advances that totaled $155.0 million and two short-term advances that totaled $60.0 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 June 30, 2024. We also have a discount window line with the Federal Reserve Bank that totaled $277.8 million at June 30, 2024 which was an increase of $58.7 million compared to availability of $219.1 million at December 31, 2023. First Guaranty did not have any advances under this facility at June 30, 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 $255.1 million at June 30, 2024 from $249.6 million at December 31, 2023. The increase in shareholders' equity was principally the result of an increase of $4.3 million in retained earnings, $0.3 million in surplus and a decrease of $0.8 million in accumulated other comprehensive loss. The $4.3 million increase in retained earnings was primarily due to net income of $9.5 million, partially offset by $4.0 million in cash dividends paid on shares of our common stock and $1.2 million in cash dividends paid on shares of our preferred stock during the six months ended June 30, 2024. 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 six months ended June 30, 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 June 30, 2024, the Bank's capital conservation buffer was 3.28% exceeding the minimum of 2.50%. As of June 30, 2024, First Guaranty's capital conservation buffer was 2.60% 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. On January 1, 2024, First Guaranty ceased being considered a "small bank holding company". Accordingly, both the Bank and First Guaranty are required to maintain specified ratios of capital to risk-weighted assets.

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 June 30, 2024, the Bank did not elect to follow the Community Bank Leverage Ratio.

At June 30, 2024, we satisfied the minimum regulatory capital requirements and were well capitalized within the meaning of federal regulatory requirements. 

	"Well Capitalized Minimums"		As of June 30, 2024		As of December 31, 2023
Tier 1 Leverage Ratio
Bank	5.00	%	8.61	%	8.94	%
Consolidated	5.00	%	7.16	%	N/A
Tier 1 Risk-based Capital Ratio
Bank	8.00	%	10.35	%	10.31	%
Consolidated	8.00	%	8.60	%	N/A
Total Risk-based Capital Ratio
Bank	10.00	%	11.28	%	11.20	%
Consolidated	10.00	%	11.05	%	N/A
Common Equity Tier One Capital Ratio
Bank	6.50	%	10.35	%	10.31	%
Consolidated	6.50	%	7.49	%	N/A

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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 June 30, 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.

 

	June 30, 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)	$	780,663		$	356,354		$	1,137,017		$	1,696,333	$	2,833,350
Securities (including FHLB stock)	12,427			341			12,768			358,003		370,771
Federal Funds Sold	392			—			392			—		392
Other earning assets	284,858			—			284,858			—		284,858
Total earning assets	$	1,078,340		$	356,695		$	1,435,035		$	2,054,336	$	3,489,371
Source of Funds:
Interest-bearing accounts:
Demand deposits	$	1,502,703		$	—		$	1,502,703		$	—	$	1,502,703
Savings deposits	234,306			—			234,306			—		234,306
Time deposits	111,403			421,953			533,356			365,479		898,835
Short-term borrowings	60,000			—			60,000			6,934		66,934
Long-term borrowings	17,156			—			17,156			155,000		172,156
Junior subordinated debt	44,715			—			44,715			—		44,715
Noninterest-bearing, net	—			—			—			569,722		569,722
Total source of funds	$	1,970,283		$	421,953		$	2,392,236		$	1,097,135	$	3,489,371
Period gap	$	(891,943)		$	(65,258)		$	(957,201)		$	957,201
Cumulative gap	$	(891,943)		$	(957,201)		$	(957,201)		$	—
Cumulative gap as a percent of earning assets	(25.6)		%	(27.4)		%	(27.4)		%

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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.

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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. During the second quarter of 2024, First Guaranty received $0.5 million of the $0.9 million receivable. The remaining $0.4 million was written off. 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)None.

(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)During the three months ended June 30, 2024, no First Guaranty officer or director adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading agreement", as each term is defined in Item 408(a) of Regulation S-K.

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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)
10.2	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)
10.3	Loan Agreement, dated as of October 5, 2023, by and between First Guaranty Bancshares, Inc. and Summit Community Bank, Inc. (13)
10.4	Promissory Note (Term Loan) issued to Summit Community Bank, Inc. on October 5, 2023. (14)
10.5	Promissory Note (Line of Credit) issued to Summit Community Bank, Inc. on October 5, 2023. (15)
10.6*	Stock Pledge and Security Agreement, dated as of October 5, 2023, by First Guaranty Bancshares, Inc. in favor of Summit Community Bank, Inc. (16)
10.7	Lease Agreements, dated June 28, 2024, by and between First Guaranty Bank and FGB Partners, L.L.C. (18)
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.

-55-

(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.

(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.

(18)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 1, 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.

-56-

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: August 9, 2024	By: /s/ Michael R. Mineer
	Michael R. Mineer
	President and Chief Executive Officer
	Principal Executive Officer
Date: August 9, 2024	By: /s/ Eric J. Dosch
	Eric J. Dosch
	Chief Financial Officer, Secretary and Treasurer
	Principal Financial Officer

-57-

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, Michael R. Mineer, 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.

August 9, 2024

/s/ Michael R. Mineer

Michael R. Mineer

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.

August 9, 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 June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Michael R. Mineer, 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.

August 9, 2024

/s/ Michael R. Mineer

Michael R. Mineer

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 June 30, 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.

August 9, 2024

/s/ Eric J. Dosch

Eric J. Dosch

Chief Financial Officer

Secretary and Treasurer

(Principal Financial & Accounting Officer)

XML

Cover - shares	6 Months Ended
	Jun. 30, 2024	Aug. 08, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 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	Q2
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	Jun. 30, 2024	Dec. 31, 2023
Cash and cash equivalents:
Cash and due from banks	$ 298,574	$ 286,114
Federal funds sold	392	341
Cash and cash equivalents	298,966	286,455
Investment securities:
Available for sale, at fair value (amortized cost of $39,006 and $85,464, respectively)	37,403	83,485
Held to maturity, at cost and net of allowance for credit losses of $80 (estimated fair value of $251,247 and $253,584, respectively)	321,164	320,638
Investment securities	358,567	404,123
Federal Home Loan Bank stock, at cost	12,204	13,390
Loans held for sale	0	0
Loans, net of unearned income	2,833,350	2,748,708
Less: allowance for credit losses	30,287	30,926
Net loans	2,803,063	2,717,782
Premises and equipment, net	69,439	69,792
Goodwill	12,900	12,900
Intangible assets, net	3,881	4,298
Other real estate, net	1,032	1,250
Accrued interest receivable	18,137	15,713
Other assets	37,382	27,069
Total Assets	3,615,571	3,552,772
Deposits:
Noninterest-bearing demand	407,607	442,755
Interest-bearing demand	1,502,703	1,526,628
Savings	234,306	218,986
Time	898,835	820,725
Total deposits	3,043,451	3,009,094
Short-term advances from Federal Home Loan Bank	60,000	50,000
Short-term borrowings	0	10,000
Repurchase agreements	6,971	6,297
Accrued interest payable	12,991	11,807
Long-term advances from Federal Home Loan Bank	155,000	155,000
Senior long-term debt	17,156	39,099
Junior subordinated debentures	44,715	15,000
Other liabilities	20,143	6,844
Total Liabilities	3,360,427	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	72,317	67,972
Accumulated other comprehensive (loss) income	(12,125)	(12,959)
Total Shareholders' Equity	255,144	249,631
Total Liabilities and Shareholders' Equity	$ 3,615,571	$ 3,552,772

XML

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Available for sale, amortized cost	$ 39,006	$ 85,464
Held to maturity, allowance for credit losses	80	80
Securities, held for maturity	$ 251,247	$ 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		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Interest Income:
Loans (including fees)	$ 47,552	$ 40,290	$ 94,470	$ 78,439
Deposits with other banks	3,626	1,071	7,102	1,822
Securities (including FHLB stock)	2,473	2,420	4,987	4,807
Total Interest Income	53,651	43,781	106,559	85,068
Interest Expense:
Demand deposits	17,059	15,036	34,035	28,085
Savings deposits	1,327	838	2,554	1,417
Time deposits	10,446	5,224	20,018	8,800
Borrowings	3,577	1,770	6,789	3,552
Total Interest Expense	32,409	22,868	63,396	41,854
Net Interest Income	21,242	20,913	43,163	43,214
Less: Provision for credit losses	6,805	548	9,109	862
Net Interest Income after Provision for Credit Losses	14,437	20,365	34,054	42,352
Noninterest Income:
Service charges, commissions and fees	795	818	1,528	1,603
ATM and debit card fees	804	828	1,568	1,653
Net gains on securities	0	0	0	0
Net gains on sale of loans	10	0	10	12
Net gains on sale of assets	13,207	7	13,213	18
Other	710	1,159	1,515	2,230
Total Noninterest Income	15,526	2,812	17,834	5,516
Noninterest Expense:
Salaries and employee benefits	10,440	9,932	20,340	19,936
Occupancy and equipment expense	2,547	2,219	4,818	4,421
Other	7,622	7,584	14,385	15,544
Total Noninterest Expense	20,609	19,735	39,543	39,901
Income Before Income Taxes	9,354	3,442	12,345	7,967
Less: Provision for income taxes	2,153	766	2,834	1,823
Net Income	7,201	2,676	9,511	6,144
Less: Preferred stock dividends	582	582	1,164	1,164
Net Income Available to Common Shareholders	$ 6,619	$ 2,094	$ 8,347	$ 4,980
Per Common Share:
Earnings (in dollars per share)	$ 0.53	$ 0.19	$ 0.67	$ 0.46
Cash dividends paid (in dollars per share)	$ 0.16	$ 0.16	$ 0.32	$ 0.32
Weighted Average Common Shares Outstanding (in shares)	12,504,717	10,913,029	12,497,313	10,815,454

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net Income	$ 7,201	$ 2,676	$ 9,511	$ 6,144
Unrealized (losses) gains on securities:
Unrealized holding gains arising during the period	261	(106)	1,056	418
Reclassification adjustments for (gains) losses included in net income	0	0	0	0
Change in unrealized gains on securities	261	(106)	1,056	418
Tax impact	(55)	22	(222)	(88)
Other comprehensive income	206	(84)	834	330
Comprehensive Income	$ 7,407	$ 2,592	$ 10,345	$ 6,474

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)
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, 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	6,144
Other comprehensive income (loss)	330
Preferred stock dividends	(1,164)
Ending balance at Jun. 30, 2023	238,857		33,058	11,431	139,379	69,887		(14,898)
Beginning balance at Mar. 31, 2023	228,676		33,058	10,717	130,093	69,622		(14,814)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,676					2,676
Common stock issued in private placement	10,000			714	9,286
Other comprehensive income (loss)	(84)							(84)
Preferred stock dividends	(582)					(582)
Cash dividends on common stock	(1,829)					(1,829)
Ending balance at Jun. 30, 2023	238,857		33,058	11,431	139,379	69,887		(14,898)
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 in private placement	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)
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	9,511
Other comprehensive income (loss)	834
Preferred stock dividends	(1,164)
Ending balance at Jun. 30, 2024	255,144		33,058	12,505	149,389	72,317		(12,125)
Beginning balance at Mar. 31, 2024	250,320		33,058	12,505	149,389	67,699		(12,331)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,201					7,201
Other comprehensive income (loss)	206							206
Preferred stock dividends	(582)					(582)
Cash dividends on common stock	(2,001)					(2,001)
Ending balance at Jun. 30, 2024	$ 255,144		$ 33,058	$ 12,505	$ 149,389	$ 72,317		$ (12,125)

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) (Parenthetical)	3 Months Ended
	Mar. 31, 2024 $ / shares shares	Jun. 30, 2023 $ / shares shares
Statement of Stockholders' Equity [Abstract]
Common stock issued (in shares) | shares	29,293	714,287
Cash dividends paid (in dollars per share) | $ / shares	$ 0.16	$ 0.16

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash Flows From Operating Activities
Net income	$ 9,511	$ 6,144
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	9,109	862
Depreciation and amortization	2,181	2,020
Amortization/Accretion of investments	206	484
(Gain) loss on sale/call of securities	0	0
(Gain) loss on sale of assets	(13,203)	(30)
Repossessed asset write downs, gains and losses on dispositions	(9)	53
FHLB stock dividends	(397)	(142)
Change in other assets and liabilities, net	2,497	2,322
Net Cash Provided By Operating Activities	9,895	11,713
Cash Flows From Investing Activities
Proceeds from maturities and calls of HTM securities	0	0
Proceeds from maturities, calls and sales of AFS securities	50,606	50,684
Funds invested in AFS securities	(4,200)	0
Funds invested in Federal Home Loan Bank stock	(1,599)	(3,656)
Proceeds from sale/redemption of Federal Home Loan Bank stock	3,182	2,425
Net increase in loans	(95,476)	(72,392)
Purchase of premises and equipment	(2,892)	(4,362)
Proceeds from sales of premises and equipment	14,816	276
Proceeds from sales of other real estate owned	295	60
Net Cash Used In Investing Activities	(35,268)	(26,965)
Cash Flows From Financing Activities
Net increase in deposits	34,357	43,627
Net (decrease) increase in federal funds purchased and short-term borrowings	674	(89,033)
Proceeds from long-term borrowings	0	120,000
Repayment of long-term borrowings	(22,015)	(1,625)
Proceeds from subordinated debentures	29,700	0
Proceeds from issuance of common stock	334	10,000
Dividends paid on preferred stock	(1,164)	(1,164)
Dividends paid on common stock	(4,002)	(3,544)
Net Cash Provided By Financing Activities	37,884	78,261
Net Increase (Decrease) In Cash and Cash Equivalents	12,511	63,009
Cash and Cash Equivalents at the Beginning of the Period	286,455	83,219
Cash and Cash Equivalents at the End of the Period	298,966	146,228
Noncash Activities:
Acquisition of real estate in settlement of loans	161	1,273
Cash Paid During The Period:
Interest on deposits and borrowed funds	62,212	39,147
Federal income taxes
Cash Paid During The Period:
Income taxes paid	0	2,500
State income taxes
Cash Paid During The Period:
Income taxes paid	$ 0	$ 330

XML

Basis of Presentation

6 Months Ended

Jun. 30, 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 June 30, 2024 and for the three and six month periods ended June 30, 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

6 Months Ended

Jun. 30, 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

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

A summary comparison of securities by type at June 30, 2024 and December 31, 2023 is shown below. 

	June 30, 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		—		(1,111)		15,639		16,750		3		(1,279)		15,474
Municipal bonds	17,167		155		(416)		16,906		13,522		31		(372)		13,181
Mortgage-backed securities	5,089		—		(231)		4,858		5,144		—		(144)		5,000
Total available for sale securities	$	39,006	$	155	$	(1,758)	$	37,403	$	85,464	$	34	$	(2,013)	$	83,485
Held to maturity:
U.S. Government Agencies	$	266,329	$	—	$	(63,618)	$	202,711	$	265,896	$	—	$	(61,532)	$	204,364
Corporate debt securities	54,915		—		(6,379)		48,536		54,822		—		(5,602)		49,220
Total held to maturity securities	$	321,244	$	—	$	(69,997)	$	251,247	$	320,718	$	—	$	(67,134)	$	253,584

The scheduled maturities of securities at June 30, 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 June 30, 2024
(in thousands)	Amortized Cost		Fair Value
Available for sale:
Due in one year or less	$	652	$	649
Due after one year through five years	4,399		4,383
Due after five years through 10 years	21,902		20,864
Over 10 years	6,964		6,649
Subtotal	33,917		32,545
Mortgage-backed securities	5,089		4,858
Total available for sale securities	$	39,006	$	37,403
Held to maturity:
Due in one year or less	$	—	$	—
Due after one year through five years	3,396		3,109
Due after five years through 10 years	138,485		117,982
Over 10 years	179,363		130,156
Total held to maturity securities	$	321,244	$	251,247

At June 30, 2024, $179.7 million of First Guaranty's securities were pledged to secure public funds deposits and borrowings. The pledged securities had a market value of $138.5 million as of June 30, 2024.

Accrued interest receivable on First Guaranty's investment securities was $1.4 million and $1.8 million at June 30, 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 June 30, 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 June 30, 2024.

						At June 30, 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	992		(8)		15	14,647		(1,103)		16	15,639		(1,111)
Municipal bonds	14	4,714		(15)		39	6,308		(401)		53	11,022		(416)
Mortgage-backed securities	2	2,569		(41)		5	2,289		(190)		7	4,858		(231)
Total available for sale securities	17	$	8,275	$	(64)	59	$	23,244	$	(1,694)	76	$	31,519	$	(1,758)
Held to maturity:
U.S. Government Agencies	—	$	—	$	—	29	$	202,711	$	(63,618)	29	$	202,711	$	(63,618)
Corporate debt securities	—	—		—		57	48,536		(6,379)		57	48,536		(6,379)
Total held to maturity securities	—	$	—	$	—	86	$	251,247	$	(69,997)	86	$	251,247	$	(69,997)

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 June 30, 2024, 162 of First Guaranty's debt securities had unrealized losses totaling 20.2% of the individual securities' amortized cost basis and 19.9% of First Guaranty's total amortized cost basis of the investment securities portfolio. 145 of the 162 securities had been in a continuous loss position for over 12 months at such date. The 145 securities had an aggregate amortized cost basis of $346.2 million and an unrealized loss of $71.7 million at June 30, 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 June 30, 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 on securities during the six months ended June 30, 2024 and 2023. There were no provisions for credit losses recognized on securities during the six months ended June 30, 2024 and 2023.

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 June 30, 2024, First Guaranty's exposure to bond issuers that exceeded 10% of shareholders' equity is below: 

	At June 30, 2024
(in thousands)	Amortized Cost		Fair Value
U.S. Government Treasuries (U.S.)	$	—	$	—
Federal Home Loan Bank (FHLB)	32,249		25,729
Federal Home Loan Mortgage Corporation (Freddie Mac-FHLMC)	97,585		69,720
Federal Farm Credit Bank (FFCB)	138,976		109,554
Total	$	268,810	$	205,003

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Loans

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Loans

Loans

The following table summarizes the components of First Guaranty's loan portfolio as of June 30, 2024 and December 31, 2023: 

	June 30, 2024				December 31, 2023
(in thousands except for %)	Balance		As % of Category		Balance		As % of Category
Real Estate:
Construction & land development	$	355,216	12.5	%	$	399,435	14.5	%
Farmland	38,493		1.3	%	32,530		1.2	%
1- 4 Family	457,263		16.1	%	444,850		16.1	%
Multifamily	160,256		5.6	%	118,921		4.3	%
Non-farm non-residential	1,164,117		41.0	%	1,045,865		37.9	%
Total Real Estate	2,175,345		76.5	%	2,041,601		74.0	%
Non-Real Estate:
Agricultural	47,852		1.7	%	41,008		1.5	%
Commercial and industrial (1)	300,597		10.6	%	334,972		12.1	%
Commercial leases	269,428		9.5	%	285,415		10.4	%
Consumer and other	47,836		1.7	%	54,485		2.0	%
Total Non-Real Estate	665,713		23.5	%	715,880		26.0	%
Total Loans Before Unearned Income	2,841,058		100.0	%	2,757,481		100.0	%
Unearned income	(7,708)				(8,773)
Total Loans Net of Unearned Income	$	2,833,350			$	2,748,708

(1) Includes PPP loans fully guaranteed by the SBA of $2.3 million and $2.8 million at June 30, 2024 and December 31, 2023, respectively.

Accrued interest receivable on First Guaranty's loans totaled $16.7 million and $13.9 million at June 30, 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 June 30, 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. 

	June 30, 2024						December 31, 2023
(in thousands)	Fixed		Floating		Total		Fixed		Floating		Total
One year or less	$	210,374	$	131,394	$	341,768	$	268,864	$	88,884	$	357,748
More than one to five years	725,809		332,564		1,058,373		782,754		357,981		1,140,735
More than five to 15 years	79,759		306,513		386,272		88,490		269,918		358,408
Over 15 years	380,859		611,461		992,320		334,337		541,066		875,403
Subtotal	$	1,396,801	$	1,381,932	2,778,733		$	1,474,445	$	1,257,849	2,732,294
Nonaccrual loans					62,325						25,187
Total Loans Before Unearned Income					2,841,058						2,757,481
Unearned income					(7,708)						(8,773)
Total Loans Net of Unearned Income					$	2,833,350					$	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 June 30, 2024 and December 31, 2023: 

	As of June 30, 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	$	2,298	$	2,314	$	4,612	$	350,604	$	355,216	$	—
Farmland	425		666		1,091		37,402		38,493		—
1- 4 family	8,775		7,977		16,752		440,511		457,263		77
Multifamily	3,978		537		4,515		155,741		160,256		—
Non-farm non-residential	29,075		41,748		70,823		1,093,294		1,164,117		122
Total Real Estate	44,551		53,242		97,793		2,077,552		2,175,345		199
Non-Real Estate:
Agricultural	565		1,379		1,944		45,908		47,852		—
Commercial and industrial	1,402		4,084		5,486		295,111		300,597		—
Commercial leases	—		3,552		3,552		265,876		269,428		—
Consumer and other	1,024		267		1,291		46,545		47,836		—
Total Non-Real Estate	2,991		9,282		12,273		653,440		665,713		—
Total Loans Before Unearned Income	$	47,542	$	62,524	$	110,066	$	2,730,992	$	2,841,058	$	199
Unearned income									(7,708)
Total Loans Net of Unearned Income									$	2,833,350

 

	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 $62.3 million and $25.2 million of nonaccrual loans at June 30, 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 June 30, 2024
(in thousands)	With Related Allowance		Without Related Allowance		Total
Real Estate:
Construction & land development	$	1,945	$	369	$	2,314
Farmland	265		401		666
1- 4 family	6,444		1,456		7,900
Multifamily	—		537		537
Non-farm non-residential	3,573		38,053		41,626
Total Real Estate	12,227		40,816		53,043
Non-Real Estate:
Agricultural	754		625		1,379
Commercial and industrial	3,460		624		4,084
Commercial leases	—		3,552		3,552
Consumer and other	267		—		267
Total Non-Real Estate	4,481		4,801		9,282
Total Nonaccrual Loans	$	16,708	$	45,617	$	62,325

	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 June 30, 2024
	Term Loans by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior	Revolving Loans		Total
Real Estate:
Construction & land development:
Pass	$	32,123	$	136,823	$	124,746	$	18,402	$	1,826	7,571	$	17,079	$	338,570
Special Mention	—		180		408		164		83		296	—		1,131
Substandard	6,132		5,951		1,340		452		263		1,287	—		15,425
Doubtful	—		—		—		90		—		—	—		90
Total Construction & land development	38,255		142,954		126,494		19,108		2,172		9,154	17,079		355,216
Current period gross charge-offs	—		—		39		—		—		—	—		39
Farmland
Pass	1,022		12,489		3,959		3,316		1,682		3,556	3,634		29,658
Special Mention	—		—		214		—		1,780		178	807		2,979
Substandard	—		—		—		2,667		2,552		637	—		5,856
Doubtful	—		—		—		—		—		—	—		—
Total Farmland	1,022		12,489		4,173		5,983		6,014		4,371	4,441		38,493
Current period gross charge-offs	—		—		258		—		—		—	—		258
1- 4 family
Pass	36,519		105,531		102,692		67,515		39,471		61,994	17,768		431,490
Special Mention	337		1,516		1,552		368		1,096		1,971	472		7,312
Substandard	—		4,141		2,638		4,593		1,595		4,716	380		18,063
Doubtful	—		—		72		—		—		253	73		398
Total 1- 4 family	36,856		111,188		106,954		72,476		42,162		68,934	18,693		457,263
Current period gross charge-offs	—		—		50		59		—		664	—		773
Multifamily
Pass	450		7,578		75,013		47,967		14,856		1,000	1,066		147,930
Special Mention	—		—		7,063		—		—		2,595	22		9,680
Substandard	—		—		2,109		—		—		537	—		2,646
Doubtful	—		—		—		—		—		—	—		—
Total Multifamily	450		7,578		84,185		47,967		14,856		4,132	1,088		160,256
Current period gross charge-offs	—		—		—		—		—		—	—		—
Non-farm non-residential
Pass	65,262		179,120		245,127		109,042		86,100		317,168	44,387		1,046,206
Special Mention	2,508		3,107		409		24,681		388		16,858	2,127		50,078
Substandard	1,452		1,655		37,156		19,367		—		4,978	3,159		67,767
Doubtful	—		—		—		—		66		—	—		66
Total non-farm non-residential	69,222		183,882		282,692		153,090		86,554		339,004	49,673		1,164,117
Current period gross charge-offs	—		3,789		—		—		331		—	—		4,120
Total Real Estate	145,805		458,091		604,498		298,624		151,758		425,595	90,974		2,175,345
Non-Real Estate:
Agricultural
Pass	1,376		3,417		8,356		3,027		1,189		3,520	21,807		42,692
Special Mention	—		25		1,805		10		143		101	64		2,148
Substandard	147		27		—		692		158		1,958	2		2,984
Doubtful	—		—		—		—		—		28	—		28
Total Agricultural	1,523		3,469		10,161		3,729		1,490		5,607	21,873		47,852
Current period gross charge-offs	—		—		—		33		—		—	—		33
Commercial and industrial
Pass	18,478		29,976		21,867		43,129		43,502		34,518	87,219		278,689

Special Mention	4,347		561		74		59		120		70		3,672		8,903
Substandard	30		332		243		182		361		2,303		9,554		13,005
Doubtful	—		—		—		—		—		—		—		—
Total Commercial and industrial	22,855		30,869		22,184		43,370		43,983		36,891		100,445		300,597
Current period gross charge-offs	—		302		693		238		2,133		204		—		3,570
Commercial leases
Pass	46,495		64,680		97,199		52,720		4,782		—		—		265,876
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		3,552		—		—		—		—		3,552
Doubtful	—		—		—		—		—		—		—		—
Total Commercial leases	46,495		64,680		100,751		52,720		4,782		—		—		269,428
Current period gross charge-offs	—		—		—		—		—		—		—		—
Consumer and other loans
Pass	5,552		18,015		6,264		4,562		5,198		7,056		—		46,647
Special Mention	—		30		79		124		44		25		—		302
Substandard	25		123		356		242		70		64		—		880
Doubtful	—		—		—		—		—		7		—		7
Total Consumer and other loans	5,577		18,168		6,699		4,928		5,312		7,152		—		47,836
Current period gross charge-offs	143		524		748		536		234		74		—		2,259
Total Non-Real Estate	76,450		117,186		139,795		104,747		55,567		49,650		122,318		665,713
Total Loans
Pass	207,277		557,629		685,223		349,680		198,606		436,383		192,960		2,627,758
Special Mention	7,192		5,419		11,604		25,406		3,654		22,094		7,164		82,533
Substandard	7,786		12,229		47,394		28,195		4,999		16,480		13,095		130,178
Doubtful	—		—		72		90		66		288		73		589
Total Loans Before Unearned Income	$	222,255	$	575,277	$	744,293	$	403,371	$	207,325	$	475,245	$	213,292	$	2,841,058
Unearned income															(7,708)
Total Loans Net of Unearned Income															$	2,833,350
Total Current Period Gross Charge-offs	$	143	$	4,615	$	1,788	$	866	$	2,698	$	942	$	—	$	11,052

	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

6 Months Ended

Jun. 30, 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 six months ended June 30, 2024 and 2023 are as follows: 

	For the Six Months Ended June 30,
	2024
(in thousands)	Beginning Allowance (12/31/2023)		Charge-offs		Recoveries		Provision		Ending Allowance (6/30/2024)
Real Estate:
Construction & land development	$	5,845	$	(39)	$	1	$	(919)	$	4,888
Farmland	36		(258)		—		247		25
1- 4 family	6,653		(773)		7		763		6,650
Multifamily	1,614		—		—		101		1,715
Non-farm non-residential	10,596		(4,120)		21		2,440		8,937
Total Real Estate	24,744		(5,190)		29		2,632		22,215
Non-Real Estate:
Agricultural	97		(33)		18		20		102
Commercial and industrial	2,711		(3,570)		126		2,515		1,782
Commercial leases	1,948		—		—		(50)		1,898
Consumer and other	1,426		(2,259)		331		3,154		2,652
Unallocated	—		—		—		1,638		1,638
Total Non-Real Estate	6,182		(5,862)		475		7,277		8,072
Total	$	30,926	$	(11,052)	$	504	$	9,909	$	30,287

	For the Six Months Ended June 30,
	2023
(in thousands)	Beginning Allowance (12/31/2022)		ASC 326 Adoption Day 1 Adjustment		Charge-offs		Recoveries		Provision		Ending Allowance (6/30/2023)
Real Estate:
Construction & land development	$	1,232	$	1,891	$	—	$	—	$	737	$	3,860
Farmland	83		(39)		—		—		3		47
1- 4 family	1,761		3,465		(100)		6		937		6,069
Multifamily	746		1,418		—		—		73		2,237
Non-farm non-residential	9,280		307		(138)		211		278		9,938
Total Real Estate	13,102		7,042		(238)		217		2,028		22,151
Non-Real Estate:
Agricultural	240		(98)		—		407		(407)		142
Commercial and industrial	2,194		2,971		(45)		159		(1,476)		3,803
Commercial leases	4,879		(162)		—		—		(2,525)		2,192
Consumer and other	2,506		(1,042)		(1,265)		216		1,147		1,562
Unallocated	597		(591)		—		—		2,005		2,011
Total Non-Real Estate	10,416		1,078		(1,310)		782		(1,256)		9,710
Total	$	23,518	$	8,120	$	(1,548)	$	999	$	772	$	31,861

Negative provisions are caused by changes in the composition and credit quality of the loan portfolio and by recoveries. The result is an allocation of the credit loss reserve from one category to another.

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

	As of June 30, 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	$	—	$	4,888	$	4,888	$	1,907	$	353,309	$	355,216
Farmland	—		25		25		5,620		32,873		38,493
1- 4 family	—		6,650		6,650		3,759		453,504		457,263
Multifamily	—		1,715		1,715		537		159,719		160,256
Non-farm non-residential	182		8,755		8,937		40,571		1,123,546		1,164,117
Total Real Estate	182		22,033		22,215		52,394		2,122,951		2,175,345
Non-Real Estate:
Agricultural	11		91		102		1,472		46,380		47,852
Commercial and industrial	152		1,630		1,782		1,487		299,110		300,597
Commercial leases	—		1,898		1,898		3,552		265,876		269,428
Consumer and other	—		2,652		2,652		—		47,836		47,836
Unallocated	—		1,638		1,638		—		—		—
Total Non-Real Estate	163		7,909		8,072		6,511		659,202		665,713
Total	$	345	$	29,942	$	30,287	$	58,905	$	2,782,153	2,841,058
Unearned Income											(7,708)
Total Loans Net of Unearned Income											$	2,833,350

All loans individually evaluated for impairment as of June 30, 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

6 Months Ended

Jun. 30, 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 June 30, 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 June 30, 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 4.8 years at June 30, 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)

6 Months Ended

Jun. 30, 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)	June 30, 2024		December 31, 2023
Real Estate Owned Acquired by Foreclosure:
Residential	$	141	$	309
Construction & land development	201		251
Non-farm non-residential	690		690
Total Other Real Estate Owned and Foreclosed Property	1,032		1,250
Allowance for Other Real Estate Owned losses	—		—
Net Other Real Estate Owned and Foreclosed Property	$	1,032	$	1,250

Loans secured by one-to-four family residential properties in the process of foreclosure totaled $1.5 million as of June 30, 2024.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 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 June 30, 2024 and December 31, 2023:

Contract Amount

(in thousands)	June 30, 2024		December 31, 2023
Commitments to Extend Credit	$	225,503	$	304,218
Unfunded Commitments under lines of credit	$	180,500	$	214,546
Commercial and Standby letters of credit	$	14,683	$	13,971

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

The provision for credit losses on unfunded commitments was a reversal of $0.8 million for the six months ended June 30, 2024. The ACL on off-balance-sheet credit exposures total $2.0 million at June 30, 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 was recorded for recovery by a claim against First Guaranty's insurer. During the second quarter of 2024, First Guaranty received $0.5 million of the $0.9 million receivable. The remaining $0.4 million was written off. 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

6 Months Ended

Jun. 30, 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 June 30, 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 June 30, 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)	June 30, 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	27,375		23,172
Level 3: Significant Unobservable Inputs	10,028		10,483
Securities available for sale measured at fair value	$	37,403	$	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 June 30, 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 June 30, 2024. There were no transfers between Level 1 and 2 securities available for sale from December 31, 2023 to June 30, 2024.

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

	Level 3 Changes
(in thousands)	June 30, 2024
Balance, beginning of year	$	10,483
Total gains or losses (realized/unrealized):
Included in earnings	—
Included in other comprehensive income	14
Purchases, sales, issuances and settlements, net	(469)
Transfers in and/or out of Level 3	—
Balance as of end of period	$	10,028

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 June 30, 2024.

The following table measures financial assets and financial liabilities measured at fair value on a non-recurring basis as of June 30, 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 June 30, 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	4,663		8,083
Loans individually evaluated for impairment measured at fair value	$	4,663	$	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	303		1,250
Level 3: Significant Unobservable Inputs	729		—
Other real estate owned measured at fair value	$	1,032	$	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

6 Months Ended

Jun. 30, 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 June 30, 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 June 30, 2024 were as follows:

	Fair Value Measurements at June 30, 2024 Using
(in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Assets
Cash and due from banks	$	298,574	$	298,574	$	—	$	—	$	298,574
Federal funds sold	392		392		—		—		392
Securities, available for sale	37,403		—		27,375		10,028		37,403
Securities, held for maturity	321,164		—		251,247		—		251,247
Loans held for sale	—		—		—		—		—
Loans, net	2,803,063		—		—		2,650,629		2,650,629
Cash surrender value of BOLI	5,935		—		—		5,935		5,935
Accrued interest receivable	18,137		—		—		18,137		18,137
Liabilities
Deposits	$	3,043,451	$	—	$	—	$	3,041,490	3,041,490
Short-term advances from Federal Home Loan Bank	60,000						60,000		60,000
Short-term borrowings	—		—		—		—		—
Repurchase agreements	6,971		—		—		6,956		6,956
Accrued interest payable	12,991		—		—		12,991		12,991
Long-term advances from Federal Home Loan Bank	155,000		—		—		153,791		153,791
Senior long-term debt	17,156		—		—		17,289		17,289
Junior subordinated debentures	44,715		—		—		44,715		44,715

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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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income	$ 7,201	$ 2,310	$ 2,676	$ 3,468	$ 9,511	$ 6,144

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 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 June 30, 2024 and for the three and six month periods ended June 30, 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 June 30, 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)

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Comparison of Securities by Type

A summary comparison of securities by type at June 30, 2024 and December 31, 2023 is shown below. 

	June 30, 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		—		(1,111)		15,639		16,750		3		(1,279)		15,474
Municipal bonds	17,167		155		(416)		16,906		13,522		31		(372)		13,181
Mortgage-backed securities	5,089		—		(231)		4,858		5,144		—		(144)		5,000
Total available for sale securities	$	39,006	$	155	$	(1,758)	$	37,403	$	85,464	$	34	$	(2,013)	$	83,485
Held to maturity:
U.S. Government Agencies	$	266,329	$	—	$	(63,618)	$	202,711	$	265,896	$	—	$	(61,532)	$	204,364
Corporate debt securities	54,915		—		(6,379)		48,536		54,822		—		(5,602)		49,220
Total held to maturity securities	$	321,244	$	—	$	(69,997)	$	251,247	$	320,718	$	—	$	(67,134)	$	253,584

Schedule of Investments Classified by Contractual Maturity Date

The scheduled maturities of securities at June 30, 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 June 30, 2024
(in thousands)	Amortized Cost		Fair Value
Available for sale:
Due in one year or less	$	652	$	649
Due after one year through five years	4,399		4,383
Due after five years through 10 years	21,902		20,864
Over 10 years	6,964		6,649
Subtotal	33,917		32,545
Mortgage-backed securities	5,089		4,858
Total available for sale securities	$	39,006	$	37,403
Held to maturity:
Due in one year or less	$	—	$	—
Due after one year through five years	3,396		3,109
Due after five years through 10 years	138,485		117,982
Over 10 years	179,363		130,156
Total held to maturity securities	$	321,244	$	251,247

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 June 30, 2024.

						At June 30, 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	992		(8)		15	14,647		(1,103)		16	15,639		(1,111)
Municipal bonds	14	4,714		(15)		39	6,308		(401)		53	11,022		(416)
Mortgage-backed securities	2	2,569		(41)		5	2,289		(190)		7	4,858		(231)
Total available for sale securities	17	$	8,275	$	(64)	59	$	23,244	$	(1,694)	76	$	31,519	$	(1,758)
Held to maturity:
U.S. Government Agencies	—	$	—	$	—	29	$	202,711	$	(63,618)	29	$	202,711	$	(63,618)
Corporate debt securities	—	—		—		57	48,536		(6,379)		57	48,536		(6,379)
Total held to maturity securities	—	$	—	$	—	86	$	251,247	$	(69,997)	86	$	251,247	$	(69,997)

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 June 30, 2024, First Guaranty's exposure to bond issuers that exceeded 10% of shareholders' equity is below: 

	At June 30, 2024
(in thousands)	Amortized Cost		Fair Value
U.S. Government Treasuries (U.S.)	$	—	$	—
Federal Home Loan Bank (FHLB)	32,249		25,729
Federal Home Loan Mortgage Corporation (Freddie Mac-FHLMC)	97,585		69,720
Federal Farm Credit Bank (FFCB)	138,976		109,554
Total	$	268,810	$	205,003

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Loans (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Components of Loan Portfolio

The following table summarizes the components of First Guaranty's loan portfolio as of June 30, 2024 and December 31, 2023: 

	June 30, 2024				December 31, 2023
(in thousands except for %)	Balance		As % of Category		Balance		As % of Category
Real Estate:
Construction & land development	$	355,216	12.5	%	$	399,435	14.5	%
Farmland	38,493		1.3	%	32,530		1.2	%
1- 4 Family	457,263		16.1	%	444,850		16.1	%
Multifamily	160,256		5.6	%	118,921		4.3	%
Non-farm non-residential	1,164,117		41.0	%	1,045,865		37.9	%
Total Real Estate	2,175,345		76.5	%	2,041,601		74.0	%
Non-Real Estate:
Agricultural	47,852		1.7	%	41,008		1.5	%
Commercial and industrial (1)	300,597		10.6	%	334,972		12.1	%
Commercial leases	269,428		9.5	%	285,415		10.4	%
Consumer and other	47,836		1.7	%	54,485		2.0	%
Total Non-Real Estate	665,713		23.5	%	715,880		26.0	%
Total Loans Before Unearned Income	2,841,058		100.0	%	2,757,481		100.0	%
Unearned income	(7,708)				(8,773)
Total Loans Net of Unearned Income	$	2,833,350			$	2,748,708

(1) Includes PPP loans fully guaranteed by the SBA of $2.3 million and $2.8 million at June 30, 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 June 30, 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. 

	June 30, 2024						December 31, 2023
(in thousands)	Fixed		Floating		Total		Fixed		Floating		Total
One year or less	$	210,374	$	131,394	$	341,768	$	268,864	$	88,884	$	357,748
More than one to five years	725,809		332,564		1,058,373		782,754		357,981		1,140,735
More than five to 15 years	79,759		306,513		386,272		88,490		269,918		358,408
Over 15 years	380,859		611,461		992,320		334,337		541,066		875,403
Subtotal	$	1,396,801	$	1,381,932	2,778,733		$	1,474,445	$	1,257,849	2,732,294
Nonaccrual loans					62,325						25,187
Total Loans Before Unearned Income					2,841,058						2,757,481
Unearned income					(7,708)						(8,773)
Total Loans Net of Unearned Income					$	2,833,350					$	2,748,708

Schedule of Past due Financing Receivables

The following tables present the age analysis of past due loans at June 30, 2024 and December 31, 2023: 

	As of June 30, 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	$	2,298	$	2,314	$	4,612	$	350,604	$	355,216	$	—
Farmland	425		666		1,091		37,402		38,493		—
1- 4 family	8,775		7,977		16,752		440,511		457,263		77
Multifamily	3,978		537		4,515		155,741		160,256		—
Non-farm non-residential	29,075		41,748		70,823		1,093,294		1,164,117		122
Total Real Estate	44,551		53,242		97,793		2,077,552		2,175,345		199
Non-Real Estate:
Agricultural	565		1,379		1,944		45,908		47,852		—
Commercial and industrial	1,402		4,084		5,486		295,111		300,597		—
Commercial leases	—		3,552		3,552		265,876		269,428		—
Consumer and other	1,024		267		1,291		46,545		47,836		—
Total Non-Real Estate	2,991		9,282		12,273		653,440		665,713		—
Total Loans Before Unearned Income	$	47,542	$	62,524	$	110,066	$	2,730,992	$	2,841,058	$	199
Unearned income									(7,708)
Total Loans Net of Unearned Income									$	2,833,350

 

	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 June 30, 2024
(in thousands)	With Related Allowance		Without Related Allowance		Total
Real Estate:
Construction & land development	$	1,945	$	369	$	2,314
Farmland	265		401		666
1- 4 family	6,444		1,456		7,900
Multifamily	—		537		537
Non-farm non-residential	3,573		38,053		41,626
Total Real Estate	12,227		40,816		53,043
Non-Real Estate:
Agricultural	754		625		1,379
Commercial and industrial	3,460		624		4,084
Commercial leases	—		3,552		3,552
Consumer and other	267		—		267
Total Non-Real Estate	4,481		4,801		9,282
Total Nonaccrual Loans	$	16,708	$	45,617	$	62,325

	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 June 30, 2024
	Term Loans by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior	Revolving Loans		Total
Real Estate:
Construction & land development:
Pass	$	32,123	$	136,823	$	124,746	$	18,402	$	1,826	7,571	$	17,079	$	338,570
Special Mention	—		180		408		164		83		296	—		1,131
Substandard	6,132		5,951		1,340		452		263		1,287	—		15,425
Doubtful	—		—		—		90		—		—	—		90
Total Construction & land development	38,255		142,954		126,494		19,108		2,172		9,154	17,079		355,216
Current period gross charge-offs	—		—		39		—		—		—	—		39
Farmland
Pass	1,022		12,489		3,959		3,316		1,682		3,556	3,634		29,658
Special Mention	—		—		214		—		1,780		178	807		2,979
Substandard	—		—		—		2,667		2,552		637	—		5,856
Doubtful	—		—		—		—		—		—	—		—
Total Farmland	1,022		12,489		4,173		5,983		6,014		4,371	4,441		38,493
Current period gross charge-offs	—		—		258		—		—		—	—		258
1- 4 family
Pass	36,519		105,531		102,692		67,515		39,471		61,994	17,768		431,490
Special Mention	337		1,516		1,552		368		1,096		1,971	472		7,312
Substandard	—		4,141		2,638		4,593		1,595		4,716	380		18,063
Doubtful	—		—		72		—		—		253	73		398
Total 1- 4 family	36,856		111,188		106,954		72,476		42,162		68,934	18,693		457,263
Current period gross charge-offs	—		—		50		59		—		664	—		773
Multifamily
Pass	450		7,578		75,013		47,967		14,856		1,000	1,066		147,930
Special Mention	—		—		7,063		—		—		2,595	22		9,680
Substandard	—		—		2,109		—		—		537	—		2,646
Doubtful	—		—		—		—		—		—	—		—
Total Multifamily	450		7,578		84,185		47,967		14,856		4,132	1,088		160,256
Current period gross charge-offs	—		—		—		—		—		—	—		—
Non-farm non-residential
Pass	65,262		179,120		245,127		109,042		86,100		317,168	44,387		1,046,206
Special Mention	2,508		3,107		409		24,681		388		16,858	2,127		50,078
Substandard	1,452		1,655		37,156		19,367		—		4,978	3,159		67,767
Doubtful	—		—		—		—		66		—	—		66
Total non-farm non-residential	69,222		183,882		282,692		153,090		86,554		339,004	49,673		1,164,117
Current period gross charge-offs	—		3,789		—		—		331		—	—		4,120
Total Real Estate	145,805		458,091		604,498		298,624		151,758		425,595	90,974		2,175,345
Non-Real Estate:
Agricultural
Pass	1,376		3,417		8,356		3,027		1,189		3,520	21,807		42,692
Special Mention	—		25		1,805		10		143		101	64		2,148
Substandard	147		27		—		692		158		1,958	2		2,984
Doubtful	—		—		—		—		—		28	—		28
Total Agricultural	1,523		3,469		10,161		3,729		1,490		5,607	21,873		47,852
Current period gross charge-offs	—		—		—		33		—		—	—		33
Commercial and industrial
Pass	18,478		29,976		21,867		43,129		43,502		34,518	87,219		278,689

Special Mention	4,347		561		74		59		120		70		3,672		8,903
Substandard	30		332		243		182		361		2,303		9,554		13,005
Doubtful	—		—		—		—		—		—		—		—
Total Commercial and industrial	22,855		30,869		22,184		43,370		43,983		36,891		100,445		300,597
Current period gross charge-offs	—		302		693		238		2,133		204		—		3,570
Commercial leases
Pass	46,495		64,680		97,199		52,720		4,782		—		—		265,876
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		3,552		—		—		—		—		3,552
Doubtful	—		—		—		—		—		—		—		—
Total Commercial leases	46,495		64,680		100,751		52,720		4,782		—		—		269,428
Current period gross charge-offs	—		—		—		—		—		—		—		—
Consumer and other loans
Pass	5,552		18,015		6,264		4,562		5,198		7,056		—		46,647
Special Mention	—		30		79		124		44		25		—		302
Substandard	25		123		356		242		70		64		—		880
Doubtful	—		—		—		—		—		7		—		7
Total Consumer and other loans	5,577		18,168		6,699		4,928		5,312		7,152		—		47,836
Current period gross charge-offs	143		524		748		536		234		74		—		2,259
Total Non-Real Estate	76,450		117,186		139,795		104,747		55,567		49,650		122,318		665,713
Total Loans
Pass	207,277		557,629		685,223		349,680		198,606		436,383		192,960		2,627,758
Special Mention	7,192		5,419		11,604		25,406		3,654		22,094		7,164		82,533
Substandard	7,786		12,229		47,394		28,195		4,999		16,480		13,095		130,178
Doubtful	—		—		72		90		66		288		73		589
Total Loans Before Unearned Income	$	222,255	$	575,277	$	744,293	$	403,371	$	207,325	$	475,245	$	213,292	$	2,841,058
Unearned income															(7,708)
Total Loans Net of Unearned Income															$	2,833,350
Total Current Period Gross Charge-offs	$	143	$	4,615	$	1,788	$	866	$	2,698	$	942	$	—	$	11,052

	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)

6 Months Ended

Jun. 30, 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 six months ended June 30, 2024 and 2023 are as follows: 

	For the Six Months Ended June 30,
	2024
(in thousands)	Beginning Allowance (12/31/2023)		Charge-offs		Recoveries		Provision		Ending Allowance (6/30/2024)
Real Estate:
Construction & land development	$	5,845	$	(39)	$	1	$	(919)	$	4,888
Farmland	36		(258)		—		247		25
1- 4 family	6,653		(773)		7		763		6,650
Multifamily	1,614		—		—		101		1,715
Non-farm non-residential	10,596		(4,120)		21		2,440		8,937
Total Real Estate	24,744		(5,190)		29		2,632		22,215
Non-Real Estate:
Agricultural	97		(33)		18		20		102
Commercial and industrial	2,711		(3,570)		126		2,515		1,782
Commercial leases	1,948		—		—		(50)		1,898
Consumer and other	1,426		(2,259)		331		3,154		2,652
Unallocated	—		—		—		1,638		1,638
Total Non-Real Estate	6,182		(5,862)		475		7,277		8,072
Total	$	30,926	$	(11,052)	$	504	$	9,909	$	30,287

	For the Six Months Ended June 30,
	2023
(in thousands)	Beginning Allowance (12/31/2022)		ASC 326 Adoption Day 1 Adjustment		Charge-offs		Recoveries		Provision		Ending Allowance (6/30/2023)
Real Estate:
Construction & land development	$	1,232	$	1,891	$	—	$	—	$	737	$	3,860
Farmland	83		(39)		—		—		3		47
1- 4 family	1,761		3,465		(100)		6		937		6,069
Multifamily	746		1,418		—		—		73		2,237
Non-farm non-residential	9,280		307		(138)		211		278		9,938
Total Real Estate	13,102		7,042		(238)		217		2,028		22,151
Non-Real Estate:
Agricultural	240		(98)		—		407		(407)		142
Commercial and industrial	2,194		2,971		(45)		159		(1,476)		3,803
Commercial leases	4,879		(162)		—		—		(2,525)		2,192
Consumer and other	2,506		(1,042)		(1,265)		216		1,147		1,562
Unallocated	597		(591)		—		—		2,005		2,011
Total Non-Real Estate	10,416		1,078		(1,310)		782		(1,256)		9,710
Total	$	23,518	$	8,120	$	(1,548)	$	999	$	772	$	31,861

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

	As of June 30, 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	$	—	$	4,888	$	4,888	$	1,907	$	353,309	$	355,216
Farmland	—		25		25		5,620		32,873		38,493
1- 4 family	—		6,650		6,650		3,759		453,504		457,263
Multifamily	—		1,715		1,715		537		159,719		160,256
Non-farm non-residential	182		8,755		8,937		40,571		1,123,546		1,164,117
Total Real Estate	182		22,033		22,215		52,394		2,122,951		2,175,345
Non-Real Estate:
Agricultural	11		91		102		1,472		46,380		47,852
Commercial and industrial	152		1,630		1,782		1,487		299,110		300,597
Commercial leases	—		1,898		1,898		3,552		265,876		269,428
Consumer and other	—		2,652		2,652		—		47,836		47,836
Unallocated	—		1,638		1,638		—		—		—
Total Non-Real Estate	163		7,909		8,072		6,511		659,202		665,713
Total	$	345	$	29,942	$	30,287	$	58,905	$	2,782,153	2,841,058
Unearned Income											(7,708)
Total Loans Net of Unearned Income											$	2,833,350

All loans individually evaluated for impairment as of June 30, 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)

6 Months Ended

Jun. 30, 2024

Real Estate [Abstract]

Schedule of Other Real Estate Owned

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

(in thousands)	June 30, 2024		December 31, 2023
Real Estate Owned Acquired by Foreclosure:
Residential	$	141	$	309
Construction & land development	201		251
Non-farm non-residential	690		690
Total Other Real Estate Owned and Foreclosed Property	1,032		1,250
Allowance for Other Real Estate Owned losses	—		—
Net Other Real Estate Owned and Foreclosed Property	$	1,032	$	1,250

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2024 and December 31, 2023:

Contract Amount

(in thousands)	June 30, 2024		December 31, 2023
Commitments to Extend Credit	$	225,503	$	304,218
Unfunded Commitments under lines of credit	$	180,500	$	214,546
Commercial and Standby letters of credit	$	14,683	$	13,971

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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 June 30, 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)	June 30, 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	27,375		23,172
Level 3: Significant Unobservable Inputs	10,028		10,483
Securities available for sale measured at fair value	$	37,403	$	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)	June 30, 2024
Balance, beginning of year	$	10,483
Total gains or losses (realized/unrealized):
Included in earnings	—
Included in other comprehensive income	14
Purchases, sales, issuances and settlements, net	(469)
Transfers in and/or out of Level 3	—
Balance as of end of period	$	10,028

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 June 30, 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 June 30, 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	4,663		8,083
Loans individually evaluated for impairment measured at fair value	$	4,663	$	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	303		1,250
Level 3: Significant Unobservable Inputs	729		—
Other real estate owned measured at fair value	$	1,032	$	1,250

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Financial Instruments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2024 were as follows:

	Fair Value Measurements at June 30, 2024 Using
(in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Assets
Cash and due from banks	$	298,574	$	298,574	$	—	$	—	$	298,574
Federal funds sold	392		392		—		—		392
Securities, available for sale	37,403		—		27,375		10,028		37,403
Securities, held for maturity	321,164		—		251,247		—		251,247
Loans held for sale	—		—		—		—		—
Loans, net	2,803,063		—		—		2,650,629		2,650,629
Cash surrender value of BOLI	5,935		—		—		5,935		5,935
Accrued interest receivable	18,137		—		—		18,137		18,137
Liabilities
Deposits	$	3,043,451	$	—	$	—	$	3,041,490	3,041,490
Short-term advances from Federal Home Loan Bank	60,000						60,000		60,000
Short-term borrowings	—		—		—		—		—
Repurchase agreements	6,971		—		—		6,956		6,956
Accrued interest payable	12,991		—		—		12,991		12,991
Long-term advances from Federal Home Loan Bank	155,000		—		—		153,791		153,791
Senior long-term debt	17,156		—		—		17,289		17,289
Junior subordinated debentures	44,715		—		—		44,715		44,715

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

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Securities - Schedule of Comparison of Securities by Type (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Available for sale:
Amortized Cost	$ 39,006	$ 85,464
Gross Unrealized Gains	155	34
Gross Unrealized Losses	(1,758)	(2,013)
Fair Value	37,403	83,485
Held to maturity:
Amortized Cost	321,244	320,718
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(69,997)	(67,134)
Fair Value	251,247	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	266,329	265,896
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(63,618)	(61,532)
Fair Value	202,711	204,364
Corporate debt securities
Available for sale:
Amortized Cost	16,750	16,750
Gross Unrealized Gains	0	3
Gross Unrealized Losses	(1,111)	(1,279)
Fair Value	15,639	15,474
Held to maturity:
Amortized Cost	54,915	54,822
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(6,379)	(5,602)
Fair Value	48,536	49,220
Municipal bonds
Available for sale:
Amortized Cost	17,167	13,522
Gross Unrealized Gains	155	31
Gross Unrealized Losses	(416)	(372)
Fair Value	16,906	13,181
Mortgage-backed securities
Available for sale:
Amortized Cost	5,089	5,144
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(231)	(144)
Fair Value	$ 4,858	$ 5,000

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Securities - Scheduled Maturities of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Amortized Cost
Due in one year or less	$ 652
Due after one year through five years	4,399
Due after five years through 10 years	21,902
Over 10 years	6,964
Subtotal	33,917
Amortized Cost	39,006	$ 85,464
Fair Value
Due in one year or less	649
Due after one year through five years	4,383
Due after five years through 10 years	20,864
Over 10 years	6,649
Subtotal	32,545
Fair Value	37,403	83,485
Amortized Cost
Due in one year or less	0
Due after one year through five years	3,396
Due after five years through 10 years	138,485
Over 10 years	179,363
Amortized Cost	321,244	320,718
Fair Value
Due in one year or less	0
Due after one year through five years	3,109
Due after five years through 10 years	117,982
Over 10 years	130,156
Fair Value	251,247	253,584
Mortgage-backed securities
Amortized Cost
Mortgage-backed securities	5,089
Amortized Cost	5,089	5,144
Fair Value
Mortgage-backed securities	4,858
Fair Value	$ 4,858	$ 5,000

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Securities - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($) chargeoff security	Jun. 30, 2023 USD ($) chargeoff	Jun. 30, 2024 USD ($) chargeoff security	Jun. 30, 2023 USD ($) chargeoff	Dec. 31, 2023 USD ($)
Debt Securities, Available-for-sale [Line Items]
Marketable securities	$ 358,567,000		$ 358,567,000		$ 404,123,000
Debt securities, accrued interest	1,400,000		1,400,000		1,800,000
Held to maturity, allowance for credit losses	$ 80,000		$ 80,000		$ 80,000
Number of debt securities with unrealized losses | security	162		162
Unrealized losses on debt securities in continuous loss position as percentage of total individual securities' amortized cost basis (as a percent)	20.20%		20.20%
Unrealized losses on debt securities in continuous loss position as percentage of amortized cost basis of investment securities portfolio (as a percent)	19.90%		19.90%
Number of debt securities in continuous loss position for over 12 months | security	145		145
Debt securities in a continuous loss position for over 12 months, amortized cost basis	$ 346,200,000		$ 346,200,000
Debt securities in a continuous loss position for over 12 months, unrealized loss	$ 71,700,000		$ 71,700,000
Number of held to maturity corporate security with a credit related impairment loss | security	1		1
Provision for credit losses	$ 6,805,000	$ 548,000	$ 9,109,000	$ 862,000
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Number of charge-offs | chargeoff	0	0	0	0
Held-to-Maturity and Available-for-Sale Securities
Debt Securities, Available-for-sale [Line Items]
Provision for credit losses			$ 0	$ 0
Deposits
Debt Securities, Available-for-sale [Line Items]
Marketable securities	$ 179,700,000		179,700,000
Debt securities, available-for-sale and held-to-maturity, fair value	$ 138,500,000		$ 138,500,000

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Securities - Schedule of Securities in Continuous Unrealized Loss Position (Details) $ in Thousands	Jun. 30, 2024 USD ($) security	Dec. 31, 2023 USD ($) security
Available for sale:
Less Than 12 Months, Number of Securities | security	17	14
Less Than 12 Months, Fair Value	$ 8,275	$ 6,023
Less Than 12 Months, Gross Unrealized Losses	$ (64)	$ (27)
12 Months or More, Number of Securities | security	59	64
12 Months or More, Fair Value	$ 23,244	$ 72,590
12 Months or More, Gross Unrealized Losses	$ (1,694)	$ (1,986)
Total, Number of Securities | security	76	78
Total, Fair Value	$ 31,519	$ 78,613
Total, Gross Unrealized Losses	$ (1,758)	$ (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	$ 251,247	$ 253,584
12 Months or More, Gross Unrealized Losses	$ (69,997)	$ (67,134)
Total, Number of Securities | security	86	86
Total, Fair Value	$ 251,247	$ 253,584
Total, Gross Unrealized Losses	$ (69,997)	$ (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	$ 202,711	$ 204,364
12 Months or More, Gross Unrealized Losses	$ (63,618)	$ (61,532)
Total, Number of Securities | security	29	29
Total, Fair Value	$ 202,711	$ 204,364
Total, Gross Unrealized Losses	$ (63,618)	$ (61,532)
Corporate debt securities
Available for sale:
Less Than 12 Months, Number of Securities | security	1	0
Less Than 12 Months, Fair Value	$ 992	$ 0
Less Than 12 Months, Gross Unrealized Losses	$ (8)	$ 0
12 Months or More, Number of Securities | security	15	15
12 Months or More, Fair Value	$ 14,647	$ 14,471
12 Months or More, Gross Unrealized Losses	$ (1,103)	$ (1,279)
Total, Number of Securities | security	16	15
Total, Fair Value	$ 15,639	$ 14,471
Total, Gross Unrealized Losses	$ (1,111)	$ (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	$ 48,536	$ 49,220
12 Months or More, Gross Unrealized Losses	$ (6,379)	$ (5,602)
Total, Number of Securities | security	57	57
Total, Fair Value	$ 48,536	$ 49,220
Total, Gross Unrealized Losses	$ (6,379)	$ (5,602)
Municipal bonds
Available for sale:
Less Than 12 Months, Number of Securities | security	14	12
Less Than 12 Months, Fair Value	$ 4,714	$ 3,417
Less Than 12 Months, Gross Unrealized Losses	$ (15)	$ (6)
12 Months or More, Number of Securities | security	39	41
12 Months or More, Fair Value	$ 6,308	$ 5,895
12 Months or More, Gross Unrealized Losses	$ (401)	$ (366)
Total, Number of Securities | security	53	53
Total, Fair Value	$ 11,022	$ 9,312
Total, Gross Unrealized Losses	$ (416)	$ (372)
Mortgage-backed securities
Available for sale:
Less Than 12 Months, Number of Securities | security	2	2
Less Than 12 Months, Fair Value	$ 2,569	$ 2,606
Less Than 12 Months, Gross Unrealized Losses	$ (41)	$ (21)
12 Months or More, Number of Securities | security	5	5
12 Months or More, Fair Value	$ 2,289	$ 2,394
12 Months or More, Gross Unrealized Losses	$ (190)	$ (123)
Total, Number of Securities | security	7	7
Total, Fair Value	$ 4,858	$ 5,000
Total, Gross Unrealized Losses	$ (231)	$ (144)

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Securities - Schedule of Exposure to Bond Issuers that Exceeded 10% of Stockholders' Equity (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Concentration Risk [Line Items]
Amortized Cost	$ 358,567	$ 404,123
Stockholders' Equity, Total
Concentration Risk [Line Items]
Amortized Cost	268,810
Fair Value	205,003
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	32,249
Fair Value	25,729
Stockholders' Equity, Total | Federal Home Loan Mortgage Corporation (Freddie Mac-FHLMC)
Concentration Risk [Line Items]
Amortized Cost	97,585
Fair Value	69,720
Stockholders' Equity, Total | Federal Farm Credit Bank (FFCB)
Concentration Risk [Line Items]
Amortized Cost	138,976
Fair Value	$ 109,554

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Loans - Components of Loan Portfolio (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Balance
Total Loans before Unearned Income	$ 2,841,058	$ 2,757,481
Unearned Income	(7,708)	(8,773)
Total loans net of unearned income	$ 2,833,350	$ 2,748,708
As % of Category
As % of Category	100.00%	100.00%
Real Estate
Balance
Total Loans before Unearned Income	$ 2,175,345	$ 2,041,601
As % of Category
As % of Category	76.50%	74.00%
Real Estate | Construction & land development
Balance
Total Loans before Unearned Income	$ 355,216	$ 399,435
As % of Category
As % of Category	12.50%	14.50%
Real Estate | Farmland
Balance
Total Loans before Unearned Income	$ 38,493	$ 32,530
As % of Category
As % of Category	1.30%	1.20%
Real Estate | 1- 4 Family
Balance
Total Loans before Unearned Income	$ 457,263	$ 444,850
As % of Category
As % of Category	16.10%	16.10%
Real Estate | Multifamily
Balance
Total Loans before Unearned Income	$ 160,256	$ 118,921
As % of Category
As % of Category	5.60%	4.30%
Real Estate | Non-farm non-residential
Balance
Total Loans before Unearned Income	$ 1,164,117	$ 1,045,865
As % of Category
As % of Category	41.00%	37.90%
Non-Real Estate
Balance
Total Loans before Unearned Income	$ 665,713	$ 715,880
As % of Category
As % of Category	23.50%	26.00%
Non-Real Estate | Agricultural
Balance
Total Loans before Unearned Income	$ 47,852	$ 41,008
As % of Category
As % of Category	1.70%	1.50%
Non-Real Estate | Commercial and industrial
Balance
Total Loans before Unearned Income	$ 300,597	$ 334,972
As % of Category
As % of Category	10.60%	12.10%
PPP loans fully guaranteed by the SBA	$ 2,300	$ 2,800
Non-Real Estate | Commercial leases
Balance
Total Loans before Unearned Income	$ 269,428	$ 285,415
As % of Category
As % of Category	9.50%	10.40%
Non-Real Estate | Consumer and other
Balance
Total Loans before Unearned Income	$ 47,836	$ 54,485
As % of Category
As % of Category	1.70%	2.00%

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Loans - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Accrued interest receivable	$ 16,700	$ 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	$ 62,325	$ 25,187

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Loans - Fixed and Floating Rate Loans by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing receivables, fixed and floating rate loans by contractual maturity [Abstract]
One year or less	$ 341,768	$ 357,748
More than one to five years	1,058,373	1,140,735
More than five to 15 years	386,272	358,408
Over 15 years	992,320	875,403
Subtotal	2,778,733	2,732,294
Nonaccrual loans	62,325	25,187
Total Loans before Unearned Income	2,841,058	2,757,481
Unearned income	(7,708)	(8,773)
Total Loans Net of Unearned Income	2,833,350	2,748,708
Fixed
Financing receivables, fixed and floating rate loans by contractual maturity [Abstract]
One year or less	210,374	268,864
More than one to five years	725,809	782,754
More than five to 15 years	79,759	88,490
Over 15 years	380,859	334,337
Subtotal	1,396,801	1,474,445
Floating
Financing receivables, fixed and floating rate loans by contractual maturity [Abstract]
One year or less	131,394	88,884
More than one to five years	332,564	357,981
More than five to 15 years	306,513	269,918
Over 15 years	611,461	541,066
Subtotal	$ 1,381,932	$ 1,257,849

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Loans - Receivables Past Due (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	$ 2,841,058	$ 2,757,481
Unearned income	(7,708)	(8,773)
Total loans net of unearned income	2,833,350	2,748,708
Recorded Investment 90 Days Accruing	199	15,287
Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	110,066	51,385
30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	47,542	10,911
90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	62,524	40,474
Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	2,730,992	2,706,096
Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	2,175,345	2,041,601
Recorded Investment 90 Days Accruing	199	14,835
Real Estate | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	97,793	40,614
Real Estate | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	44,551	7,151
Real Estate | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	53,242	33,463
Real Estate | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	2,077,552	2,000,987
Real Estate | Construction & land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	355,216	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	4,612	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	2,298	1,281
Real Estate | Construction & land development | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	2,314	530
Real Estate | Construction & land development | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	350,604	397,624
Real Estate | Farmland
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	38,493	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	1,091	933
Real Estate | Farmland | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	425	97
Real Estate | Farmland | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	666	836
Real Estate | Farmland | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	37,402	31,597
Real Estate | 1- 4 family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	457,263	444,850
Recorded Investment 90 Days Accruing	77	124
Real Estate | 1- 4 family | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	16,752	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	8,775	3,929
Real Estate | 1- 4 family | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	7,977	7,109
Real Estate | 1- 4 family | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	440,511	433,812
Real Estate | Multifamily
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	160,256	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	4,515	1,361
Real Estate | Multifamily | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	3,978	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	155,741	117,560
Real Estate | Non-farm non-residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	1,164,117	1,045,865
Recorded Investment 90 Days Accruing	122	14,711
Real Estate | Non-farm non-residential | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	70,823	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	29,075	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	41,748	24,451
Real Estate | Non-farm non-residential | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	1,093,294	1,020,394
Non-Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	665,713	715,880
Recorded Investment 90 Days Accruing	0	452
Non-Real Estate | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	12,273	10,771
Non-Real Estate | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	2,991	3,760
Non-Real Estate | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	9,282	7,011
Non-Real Estate | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	653,440	705,109
Non-Real Estate | Agricultural
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	47,852	41,008
Recorded Investment 90 Days Accruing	0	57
Non-Real Estate | Agricultural | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	1,944	1,666
Non-Real Estate | Agricultural | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	565	240
Non-Real Estate | Agricultural | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	1,379	1,426
Non-Real Estate | Agricultural | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	45,908	39,342
Non-Real Estate | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	300,597	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	5,486	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	1,402	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	4,084	1,976
Non-Real Estate | Commercial and industrial | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	295,111	330,513
Non-Real Estate | Commercial leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	269,428	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	3,552	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	0	0
Non-Real Estate | Commercial leases | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	3,552	1,799
Non-Real Estate | Commercial leases | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	265,876	283,616
Non-Real Estate | Consumer and other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	47,836	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	1,291	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	1,024	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	267	1,810
Non-Real Estate | Consumer and other | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans before Unearned Income	$ 46,545	$ 51,638

XML

Loans - Nonaccrual Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	$ 16,708	$ 18,978
Without Related Allowance	45,617	6,209
Total	62,325	25,187
Real Estate
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	12,227	15,188
Without Related Allowance	40,816	3,440
Total	53,043	18,628
Real Estate | Construction & land development
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	1,945	530
Without Related Allowance	369	0
Total	2,314	530
Real Estate | Farmland
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	265	511
Without Related Allowance	401	325
Total	666	836
Real Estate | 1- 4 family
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	6,444	5,417
Without Related Allowance	1,456	1,568
Total	7,900	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	3,573	8,730
Without Related Allowance	38,053	1,010
Total	41,626	9,740
Non-Real Estate
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	4,481	3,790
Without Related Allowance	4,801	2,769
Total	9,282	6,559
Non-Real Estate | Agricultural
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	754	399
Without Related Allowance	625	970
Total	1,379	1,369
Non-Real Estate | Commercial and industrial
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	3,460	1,581
Without Related Allowance	624	0
Total	4,084	1,581
Non-Real Estate | Commercial leases
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	0	0
Without Related Allowance	3,552	1,799
Total	3,552	1,799
Non-Real Estate | Consumer and other
Summary of nonaccrual loans by class [Abstract]
With Related Allowance	267	1,810
Without Related Allowance	0	0
Total	$ 267	$ 1,810

XML

Loans - Credit Exposure of Portfolio (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	$ 222,255		$ 571,635
Year two	575,277		785,667
Year three	744,293		428,341
Year four	403,371		226,793
Year five	207,325		135,490
Prior	475,245		385,950
Revolving Loans	213,292		223,605
Total Loans before Unearned Income	2,841,058		2,757,481
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Year one	143		627
Year two	4,615		1,917
Year three	1,788		953
Year four	866		1,029
Year five	2,698		28
Prior	942		1,217
Revolving Loans	0		0
Total	11,052	$ 1,548	5,771
Unearned income	(7,708)		(8,773)
Total loans net of unearned income	2,833,350		2,748,708
Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	207,277		568,228
Year two	557,629		743,019
Year three	685,223		392,315
Year four	349,680		217,245
Year five	198,606		116,225
Prior	436,383		358,286
Revolving Loans	192,960		213,596
Total Loans before Unearned Income	2,627,758		2,608,914
Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	7,192		2,903
Year two	5,419		16,806
Year three	11,604		8,167
Year four	25,406		2,760
Year five	3,654		16,726
Prior	22,094		8,517
Revolving Loans	7,164		2,839
Total Loans before Unearned Income	82,533		58,718
Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	7,786		504
Year two	12,229		25,681
Year three	47,394		27,343
Year four	28,195		6,643
Year five	4,999		2,298
Prior	16,480		18,768
Revolving Loans	13,095		7,053
Total Loans before Unearned Income	130,178		88,290
Doubtful
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	0		161
Year three	72		516
Year four	90		145
Year five	66		241
Prior	288		379
Revolving Loans	73		117
Total Loans before Unearned Income	589		1,559
Real Estate
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	145,805		431,954
Year two	458,091		605,807
Year three	604,498		295,096
Year four	298,624		158,082
Year five	151,758		123,117
Prior	425,595		341,060
Revolving Loans	90,974		86,485
Total Loans before Unearned Income	2,175,345		2,041,601
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Total	5,190	238
Real Estate | Construction & land development
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	38,255		135,316
Year two	142,954		142,402
Year three	126,494		76,603
Year four	19,108		3,632
Year five	2,172		8,717
Prior	9,154		13,858
Revolving Loans	17,079		18,907
Total Loans before Unearned Income	355,216		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	39		0
Year four	0		0
Year five	0		0
Prior	0		0
Revolving Loans	0		0
Total	39	0	0
Real Estate | Construction & land development | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	32,123		134,527
Year two	136,823		140,068
Year three	124,746		75,884
Year four	18,402		3,369
Year five	1,826		8,533
Prior	7,571		11,940
Revolving Loans	17,079		18,907
Total Loans before Unearned Income	338,570		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	180		1,579
Year three	408		170
Year four	164		0
Year five	83		90
Prior	296		250
Revolving Loans	0		0
Total Loans before Unearned Income	1,131		2,878
Real Estate | Construction & land development | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	6,132		0
Year two	5,951		716
Year three	1,340		458
Year four	452		263
Year five	263		94
Prior	1,287		1,668
Revolving Loans	0		0
Total Loans before Unearned Income	15,425		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	0		91
Year four	90		0
Year five	0		0
Prior	0		0
Revolving Loans	0		0
Total Loans before Unearned Income	90		130
Real Estate | Farmland
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	1,022		9,513
Year two	12,489		4,477
Year three	4,173		4,709
Year four	5,983		6,159
Year five	6,014		368
Prior	4,371		3,742
Revolving Loans	4,441		3,562
Total Loans before Unearned Income	38,493		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	258		0
Year four	0		0
Year five	0		0
Prior	0		0
Revolving Loans	0		0
Total	258	0	0
Real Estate | Farmland | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	1,022		9,513
Year two	12,489		4,032
Year three	3,959		3,340
Year four	3,316		1,768
Year five	1,682		253
Prior	3,556		2,730
Revolving Loans	3,634		2,162
Total Loans before Unearned Income	29,658		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	214		0
Year four	0		514
Year five	1,780		0
Prior	178		359
Revolving Loans	807		0
Total Loans before Unearned Income	2,979		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	0		1,369
Year four	2,667		3,877
Year five	2,552		115
Prior	637		653
Revolving Loans	0		1,355
Total Loans before Unearned Income	5,856		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	0		45
Total Loans before Unearned Income	0		45
Real Estate | 1- 4 family
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	36,856		113,991
Year two	111,188		116,230
Year three	106,954		77,107
Year four	72,476		44,667
Year five	42,162		22,512
Prior	68,934		51,616
Revolving Loans	18,693		18,727
Total Loans before Unearned Income	457,263		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	50		0
Year four	59		0
Year five	0		0
Prior	664		964
Revolving Loans	0		0
Total	773	100	964
Real Estate | 1- 4 family | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	36,519		112,636
Year two	105,531		110,978
Year three	102,692		70,599
Year four	67,515		41,766
Year five	39,471		19,542
Prior	61,994		47,374
Revolving Loans	17,768		17,215
Total Loans before Unearned Income	431,490		420,110
Real Estate | 1- 4 family | Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	337		1,307
Year two	1,516		2,505
Year three	1,552		749
Year four	368		1,544
Year five	1,096		775
Prior	1,971		997
Revolving Loans	472		667
Total Loans before Unearned Income	7,312		8,544
Real Estate | 1- 4 family | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		48
Year two	4,141		2,625
Year three	2,638		5,368
Year four	4,593		1,357
Year five	1,595		1,956
Prior	4,716		3,086
Revolving Loans	380		773
Total Loans before Unearned Income	18,063		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	72		391
Year four	0		0
Year five	0		239
Prior	253		159
Revolving Loans	73		72
Total Loans before Unearned Income	398		983
Real Estate | Multifamily
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	450		9,945
Year two	7,578		76,217
Year three	84,185		6,121
Year four	47,967		15,131
Year five	14,856		1,877
Prior	4,132		4,496
Revolving Loans	1,088		5,134
Total Loans before Unearned Income	160,256		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	7,578		76,217
Year three	75,013		6,121
Year four	47,967		15,131
Year five	14,856		1,877
Prior	1,000		2,311
Revolving Loans	1,066		5,110
Total Loans before Unearned Income	147,930		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	7,063		0
Year four	0		0
Year five	0		0
Prior	2,595		1,648
Revolving Loans	22		24
Total Loans before Unearned Income	9,680		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	2,109		0
Year four	0		0
Year five	0		0
Prior	537		537
Revolving Loans	0		0
Total Loans before Unearned Income	2,646		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	69,222		163,189
Year two	183,882		266,481
Year three	282,692		130,556
Year four	153,090		88,493
Year five	86,554		89,643
Prior	339,004		267,348
Revolving Loans	49,673		40,155
Total Loans before Unearned Income	1,164,117		1,045,865
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Year one	0		0
Year two	3,789		0
Year three	0		0
Year four	0		138
Year five	331		0
Prior	0		0
Revolving Loans	0		0
Total	4,120	138	138
Real Estate | Non-farm non-residential | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	65,262		162,234
Year two	179,120		247,182
Year three	245,127		111,054
Year four	109,042		88,039
Year five	86,100		73,797
Prior	317,168		256,032
Revolving Loans	44,387		33,907
Total Loans before Unearned Income	1,046,206		972,245
Real Estate | Non-farm non-residential | Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	2,508		708
Year two	3,107		369
Year three	409		1,014
Year four	24,681		388
Year five	388		15,846
Prior	16,858		5,191
Revolving Loans	2,127		1,525
Total Loans before Unearned Income	50,078		25,041
Real Estate | Non-farm non-residential | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	1,452		247
Year two	1,655		18,930
Year three	37,156		18,488
Year four	19,367		0
Year five	0		0
Prior	4,978		6,125
Revolving Loans	3,159		4,723
Total Loans before Unearned Income	67,767		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	76,450		139,681
Year two	117,186		179,860
Year three	139,795		133,245
Year four	104,747		68,711
Year five	55,567		12,373
Prior	49,650		44,890
Revolving Loans	122,318		137,120
Total Loans before Unearned Income	665,713		715,880
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Total	5,862	1,310
Non-Real Estate | Agricultural
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	1,523		2,555
Year two	3,469		10,510
Year three	10,161		3,834
Year four	3,729		1,696
Year five	1,490		1,552
Prior	5,607		4,520
Revolving Loans	21,873		16,341
Total Loans before Unearned Income	47,852		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	1,376		2,555
Year two	3,417		10,406
Year three	8,356		3,142
Year four	3,027		1,336
Year five	1,189		1,532
Prior	3,520		2,378
Revolving Loans	21,807		16,259
Total Loans before Unearned Income	42,692		37,608
Non-Real Estate | Agricultural | Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	0		0
Year two	25		104
Year three	1,805		0
Year four	10		81
Year five	143		0
Prior	101		0
Revolving Loans	64		25
Total Loans before Unearned Income	2,148		210
Non-Real Estate | Agricultural | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	147		0
Year two	27		0
Year three	0		692
Year four	692		279
Year five	158		20
Prior	1,958		2,100
Revolving Loans	2		57
Total Loans before Unearned Income	2,984		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	28		42
Revolving Loans	0		0
Total Loans before Unearned Income	28		42
Non-Real Estate | Commercial and industrial
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	22,855		41,213
Year two	30,869		28,120
Year three	22,184		52,657
Year four	43,370		54,333
Year five	43,983		5,640
Prior	36,891		32,380
Revolving Loans	100,445		120,629
Total Loans before Unearned Income	300,597		334,972
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Year one	0		29
Year two	302		791
Year three	693		133
Year four	238		532
Year five	2,133		0
Prior	204		209
Revolving Loans	0		0
Total	3,570	45	1,694
Non-Real Estate | Commercial and industrial | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	18,478		41,105
Year two	29,976		27,800
Year three	21,867		48,097
Year four	43,129		53,585
Year five	43,502		5,613
Prior	34,518		27,634
Revolving Loans	87,219		119,886
Total Loans before Unearned Income	278,689		323,720
Non-Real Estate | Commercial and industrial | Special Mention
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	4,347		63
Year two	561		37
Year three	74		4,382
Year four	59		146
Year five	120		0
Prior	70		53
Revolving Loans	3,672		598
Total Loans before Unearned Income	8,903		5,279
Non-Real Estate | Commercial and industrial | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	30		45
Year two	332		283
Year three	243		178
Year four	182		602
Year five	361		27
Prior	2,303		4,531
Revolving Loans	9,554		145
Total Loans before Unearned Income	13,005		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	0		162
Revolving Loans	0		0
Total Loans before Unearned Income	0		162
Non-Real Estate | Commercial leases
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	46,495		74,456
Year two	64,680		131,232
Year three	100,751		69,212
Year four	52,720		6,087
Year five	4,782		4,428
Prior	0		0
Revolving Loans	0		0
Total Loans before Unearned Income	269,428		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	46,495		74,456
Year two	64,680		117,566
Year three	97,199		67,615
Year four	52,720		6,087
Year five	4,782		4,428
Prior	0		0
Revolving Loans	0		0
Total Loans before Unearned Income	265,876		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	3,552		0
Year four	0		0
Year five	0		0
Prior	0		0
Revolving Loans	0		0
Total Loans before Unearned Income	3,552		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	5,577		21,457
Year two	18,168		9,998
Year three	6,699		7,542
Year four	4,928		6,595
Year five	5,312		753
Prior	7,152		7,990
Revolving Loans	0		150
Total Loans before Unearned Income	47,836		54,485
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Year one	143		598
Year two	524		1,126
Year three	748		820
Year four	536		359
Year five	234		28
Prior	74		44
Revolving Loans	0		0
Total	2,259	$ 1,265	2,975
Non-Real Estate | Consumer and other | Pass
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	5,552		21,257
Year two	18,015		8,770
Year three	6,264		6,463
Year four	4,562		6,164
Year five	5,198		650
Prior	7,056		7,887
Revolving Loans	0		150
Total Loans before Unearned Income	46,647		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	30		151
Year three	79		255
Year four	124		87
Year five	44		15
Prior	25		19
Revolving Loans	0		0
Total Loans before Unearned Income	302		563
Non-Real Estate | Consumer and other | Substandard
Credit exposure of loan portfolio by specific credit ratings [Abstract]
Year one	25		164
Year two	123		1,077
Year three	356		790
Year four	242		265
Year five	70		86
Prior	64		68
Revolving Loans	0		0
Total Loans before Unearned Income	880		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	7		16
Revolving Loans	0		0
Total Loans before Unearned Income	$ 7		$ 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	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 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	(11,052)	(1,548)	(5,771)
Recoveries	504	999
Provision	9,909	772
Ending allowance	30,287	31,861	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	(5,190)	(238)
Recoveries	29	217
Provision	2,632	2,028
Ending allowance	22,215	22,151	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	(39)	0	0
Recoveries	1	0
Provision	(919)	737
Ending allowance	4,888	3,860	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	(258)	0	0
Recoveries	0	0
Provision	247	3
Ending allowance	25	47	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	(773)	(100)	(964)
Recoveries	7	6
Provision	763	937
Ending allowance	6,650	6,069	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	101	73
Ending allowance	1,715	2,237	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	(4,120)	(138)	(138)
Recoveries	21	211
Provision	2,440	278
Ending allowance	8,937	9,938	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	(5,862)	(1,310)
Recoveries	475	782
Provision	7,277	(1,256)
Ending allowance	8,072	9,710	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	18	407
Provision	20	(407)
Ending allowance	102	142	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	(3,570)	(45)	(1,694)
Recoveries	126	159
Provision	2,515	(1,476)
Ending allowance	1,782	3,803	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	(50)	(2,525)
Ending allowance	1,898	2,192	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	(2,259)	(1,265)	(2,975)
Recoveries	331	216
Provision	3,154	1,147
Ending allowance	2,652	1,562	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	1,638	2,005
Ending allowance	$ 1,638	$ 2,011	$ 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	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	$ 345	$ 4,122
Allowance Collectively Evaluated	29,942	26,804
Total Allowance for Credit Losses	30,287	30,926	$ 31,861	$ 23,518
Loans Individually Evaluated	58,905	66,962
Loans Collectively Evaluated	2,782,153	2,690,519
Total Loans before Unearned Income	2,841,058	2,757,481
Unearned Income	(7,708)	(8,773)
Total loans net of unearned income	2,833,350	2,748,708
Real Estate
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	182	3,363
Allowance Collectively Evaluated	22,033	21,381
Total Allowance for Credit Losses	22,215	24,744	22,151	13,102
Loans Individually Evaluated	52,394	59,233
Loans Collectively Evaluated	2,122,951	1,982,368
Total Loans before Unearned Income	2,175,345	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	4,888	5,845
Total Allowance for Credit Losses	4,888	5,845	3,860	1,232
Loans Individually Evaluated	1,907	1,389
Loans Collectively Evaluated	353,309	398,046
Total Loans before Unearned Income	355,216	399,435
Real Estate | Farmland
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	0	0
Allowance Collectively Evaluated	25	36
Total Allowance for Credit Losses	25	36	47	83
Loans Individually Evaluated	5,620	5,670
Loans Collectively Evaluated	32,873	26,860
Total Loans before Unearned Income	38,493	32,530
Real Estate | 1- 4 family
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	0	316
Allowance Collectively Evaluated	6,650	6,337
Total Allowance for Credit Losses	6,650	6,653	6,069	1,761
Loans Individually Evaluated	3,759	5,066
Loans Collectively Evaluated	453,504	439,784
Total Loans before Unearned Income	457,263	444,850
Real Estate | Multifamily
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	0	0
Allowance Collectively Evaluated	1,715	1,614
Total Allowance for Credit Losses	1,715	1,614	2,237	746
Loans Individually Evaluated	537	537
Loans Collectively Evaluated	159,719	118,384
Total Loans before Unearned Income	160,256	118,921
Real Estate | Non-farm non-residential
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	182	3,047
Allowance Collectively Evaluated	8,755	7,549
Total Allowance for Credit Losses	8,937	10,596	9,938	9,280
Loans Individually Evaluated	40,571	46,571
Loans Collectively Evaluated	1,123,546	999,294
Total Loans before Unearned Income	1,164,117	1,045,865
Non-Real Estate
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	163	759
Allowance Collectively Evaluated	7,909	5,423
Total Allowance for Credit Losses	8,072	6,182	9,710	10,416
Loans Individually Evaluated	6,511	7,729
Loans Collectively Evaluated	659,202	708,151
Total Loans before Unearned Income	665,713	715,880
Non-Real Estate | Agricultural
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	11	1
Allowance Collectively Evaluated	91	96
Total Allowance for Credit Losses	102	97	142	240
Loans Individually Evaluated	1,472	1,466
Loans Collectively Evaluated	46,380	39,542
Total Loans before Unearned Income	47,852	41,008
Non-Real Estate | Commercial and industrial
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	152	758
Allowance Collectively Evaluated	1,630	1,953
Total Allowance for Credit Losses	1,782	2,711	3,803	2,194
Loans Individually Evaluated	1,487	4,464
Loans Collectively Evaluated	299,110	330,508
Total Loans before Unearned Income	300,597	334,972
Non-Real Estate | Commercial leases
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	0	0
Allowance Collectively Evaluated	1,898	1,948
Total Allowance for Credit Losses	1,898	1,948	2,192	4,879
Loans Individually Evaluated	3,552	1,799
Loans Collectively Evaluated	265,876	283,616
Total Loans before Unearned Income	269,428	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	2,652	1,426
Total Allowance for Credit Losses	2,652	1,426	1,562	2,506
Loans Individually Evaluated	0	0
Loans Collectively Evaluated	47,836	54,485
Total Loans before Unearned Income	47,836	54,485
Non-Real Estate | Unallocated
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance Individually Evaluated	0	0
Allowance Collectively Evaluated	1,638	0
Total Allowance for Credit Losses	1,638	0	$ 2,011	$ 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 ($)	6 Months Ended
	Jun. 30, 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	4 years 9 months 18 days

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Other Real Estate (ORE) - Schedule of Other Real Estate Owned (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Real Estate Owned Acquired by Foreclosure
Total Other Real Estate Owned and Foreclosed Property	$ 1,032	$ 1,250
Allowance for Other Real Estate Owned losses	0	0
Net Other Real Estate Owned and Foreclosed Property	1,032	1,250
Residential
Real Estate Owned Acquired by Foreclosure
Total Other Real Estate Owned and Foreclosed Property	141	309
Construction & land development
Real Estate Owned Acquired by Foreclosure
Total Other Real Estate Owned and Foreclosed Property	201	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	Jun. 30, 2024 USD ($)
Real Estate | 1- 4 family
Real Estate [Line Items]
Loans in process of foreclosure	$ 1.5

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Commitments and Contingencies - Notional Amounts of Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Commitments to Extend Credit
Off-balance sheet commitments [Abstract]
Notional value	$ 225,503	$ 304,218
Unfunded Commitments under lines of credit
Off-balance sheet commitments [Abstract]
Notional value	180,500	214,546
Commercial and Standby letters of credit
Off-balance sheet commitments [Abstract]
Notional value	$ 14,683	$ 13,971

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Commitments and Contingencies - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Sep. 30, 2021	Jun. 30, 2024	Dec. 31, 2023
Loss Contingencies [Line Items]
Off-balance-sheet, credit loss, liability	$ 2,000,000.0		$ 2,000,000.0	$ 2,800,000
Case Settled in the Third Quarter of 2021
Loss Contingencies [Line Items]
Litigation settlement, amount		$ 1,100,000
Loss contingency, receivable		$ 900,000
Loss contingency, receivable, proceeds	500,000
Loss contingency, receivable, period decrease	400,000
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		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		1,500,000
Loss contingency, accrued	$ 0		0
Unfunded Commitments under lines of credit
Loss Contingencies [Line Items]
Financing receivable, credit loss, reversal			$ 800,000

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Fair Value Measurements - Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities, available for sale	$ 37,403	$ 83,485
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities, available for sale	37,403	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	27,375	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	$ 10,028	$ 10,483

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Fair Value Measurements - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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	14
Purchases, sales, issuances and settlements, net	(469)
Transfers in and/or out of Level 3	0
Balance as of end of period	$ 10,028

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Fair Value Measurements - Nonrecurring (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	Jun. 30, 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	$ 4,663	$ 8,083
Other real estate owned measured at fair value	1,032	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	303	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	4,663	8,083
Other real estate owned measured at fair value	$ 729	$ 0

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Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets
Securities, available for sale	$ 37,403	$ 83,485
Securities, held for maturity	251,247	253,584
Carrying Amount
Assets
Federal funds sold	392	341
Securities, available for sale	37,403	83,485
Securities, held for maturity	321,164	320,638
Loans held for sale	0
Loans, net	2,803,063	2,717,782
Cash surrender value of BOLI	5,935	5,861
Accrued interest receivable	18,137	15,713
Liabilities
Deposits	3,043,451	3,009,094
Short-term advances from Federal Home Loan Bank	60,000	50,000
Short-term borrowings	0	10,000
Repurchase agreements	6,971	6,297
Accrued interest payable	12,991	11,807
Long-term advances from Federal Home Loan Bank	155,000	155,000
Senior long-term debt	17,156	39,099
Junior subordinated debentures	44,715	15,000
Carrying Amount | Cash and due from banks
Assets
Cash and due from banks	298,574	286,114
Fair Value Measurements
Assets
Federal funds sold	392	341
Securities, available for sale	37,403	83,485
Securities, held for maturity	251,247	253,584
Loans held for sale	0
Loans, net	2,650,629	2,581,979
Cash surrender value of BOLI	5,935	5,861
Accrued interest receivable	18,137	15,713
Liabilities
Deposits	3,041,490	3,001,498
Short-term advances from Federal Home Loan Bank	60,000	50,000
Short-term borrowings	0	10,000
Repurchase agreements	6,956	6,285
Accrued interest payable	12,991	11,807
Long-term advances from Federal Home Loan Bank	153,791	152,299
Senior long-term debt	17,289	39,304
Junior subordinated debentures	44,715	15,000
Fair Value Measurements | Cash and due from banks
Assets
Cash and due from banks	298,574	286,114
Fair Value Measurements | Level 1
Assets
Federal funds sold	392	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	298,574	286,114
Fair Value Measurements | Level 2
Assets
Federal funds sold	0	0
Securities, available for sale	27,375	23,172
Securities, held for maturity	251,247	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	10,028	10,483
Securities, held for maturity	0	0
Loans held for sale	0
Loans, net	2,650,629	2,581,979
Cash surrender value of BOLI	5,935	5,861
Accrued interest receivable	18,137	15,713
Liabilities
Deposits	3,041,490	3,001,498
Short-term advances from Federal Home Loan Bank	60,000	50,000
Short-term borrowings	0	10,000
Repurchase agreements	6,956	6,285
Accrued interest payable	12,991	11,807
Long-term advances from Federal Home Loan Bank	153,791	152,299
Senior long-term debt	17,289	39,304
Junior subordinated debentures	44,715	15,000
Fair Value Measurements | Level 3 | Cash and due from banks
Assets
Cash and due from banks	$ 0	$ 0

XML

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]