First Guaranty Bancshares, Inc. announced its unaudited financial results for the second quarter and six months ending June 30, 2025.
The company continued with its business strategy to reduce risk in the loan portfolio, resulting in a decrease in non-performing assets.
Expense reduction plans were implemented leading to a decline in noninterest expense and annual run rate savings in line with strategic plans.
Risk Reduction Strategy
Successfully reduced non-performing assets by $6.8 million through workout structures.
Credit Provision
Recorded a provision to the credit allowance of $16.6 million, driven by specific reserves on individual loans and portfolio trends.
Expense Reduction
Noninterest expenses declined by $0.8 million in the second quarter of 2025, aligning with strategic cost-saving objectives.
Loan Balances Decline
Loan balances decreased to $2.41 billion at June 30, 2025, part of the strategy to reduce loan concentration risk.
- The reduction in non-performing assets and noninterest expenses showcases First Guaranty's commitment to managing risk and improving operational efficiency.
- The decline in loan balances reflects the company's strategic move to reduce loan concentration risk, particularly in commercial real estate loans.
First Guaranty Bancshares, Inc. demonstrated proactive measures to mitigate risk, reduce expenses, and strategically manage its loan portfolio, reflecting a focus on long-term sustainability and financial resilience.