FGBI

First Guaranty flipped from $12.4M of net income in FY2024 to a $56.0M net loss in FY2025 — a $68.5M swing that drove ROE to -22.3% and EPS to $(4.17). Management attributes the loss to three things: an $81.7M credit-loss provision (of which $43.4M stems from a *single* commercial lease relationship), a $12.9M goodwill impairment, and a drop in noninterest income as the prior-year sale-leaseback gain rolled off. The goodwill write-off is non-recurring, but the credit event is the more troubling signal: a concentration large enough to consume most of a year's earnings points to underwriting/monitoring weakness, not a one-off. Total loans fell 23.2% (-$624M) to $2.1B — the bank is shrinking its core earning-asset base, and net interest margin is already thin at 2.28% (down 19bps) against a 3.92% cost of funds, leaving little cushion to earn its way back.

The balance sheet is stressed but not broken. Shareholders' equity fell to $226.2M (10-K figure; $251M per XBRL) even as assets grew to $4.1B, pushing leverage to ~15x liabilities/equity. Retained earnings collapsed 80.7% to $14.1M, and the loss was partly plugged by issuing shares — count rose 26.3% to 15.8M, diluting existing holders. Cash ballooned 49.9% to $846M, which cushions liquidity but also reflects a defensive, low-yielding asset mix that further pressures NIM. The dividend was cut 89.1% to $560K, and the 10-K flags Louisiana-law solvency constraints on paying dividends at all — a clear tell that capital return is not a near-term story.