First Guaranty Bancshares, Inc. reported a net loss of $6.166 million for the first quarter ended March 31, 2025, a significant decline from the net income of $2.310 million in Q1 2024. The loss translated to an earnings per common share of $(0.54), compared to $0.14 in the prior year's quarter. This outcome was primarily driven by a substantial increase in the provision for credit losses, which totaled $14.548 million, up from $2.304 million in Q1 2024.
As part of its strategic de-risking, First Guaranty sold two commercial real estate loans totaling $70.0 million during the quarter, resulting in a $5.8 million loss recorded to the allowance for credit losses. Despite the net loss, the bank increased its total risk-based capital ratio to 12.74% at March 31, 2025, from 12.11% at December 31, 2024. Total assets decreased to $3.829 billion from $3.924 billion at the end of the previous quarter, reflecting a reduction in total loans to $2.469 billion.
The company continued its focus on efficiency, with non-interest expense totaling $18.0 million in Q1 2025, including $0.7 million in costs related to the loan sale. Total full-time equivalent employees declined to 382 as of March 31, 2025, from 495 at June 30, 2024, as the company works towards achieving $12.0 million in annualized cost savings. The common stock dividend remained at $0.01 per share for the quarter.
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