First Guaranty Bancshares, Inc. (FGBI): Business Model Canvas [Dec-2025 Updated]

You're digging into the nuts and bolts of First Guaranty Bancshares, Inc. (FGBI)'s business, trying to see past the stock ticker to the actual engine running the operation. Honestly, for a community bank with $3.8 billion in assets and $3.4 billion in deposits as of late 2025, their model is a classic relationship play, focused on local lending and personalized service across Louisiana, Texas, and Florida. Still, you need to see how they manage the risks-like that $47.9 million provision for credit losses in Q3 2025-against their $24.1 million revenue for the same period. I've mapped out all nine essential building blocks below so you can see exactly where their value comes from and what their cost structure looks like; it's all here for your review.

First Guaranty Bancshares, Inc. (FGBI) - Canvas Business Model: Key Partnerships

You're looking at how First Guaranty Bancshares, Inc. (FGBI) manages its external relationships to support its balance sheet and operations as of late 2025. The bank has been actively managing risk, which impacts how it uses these partnerships.

Correspondent banks for liquidity and wholesale funding

First Guaranty Bancshares, Inc. maintains relationships with correspondent banks, which is evident in the balances held above standard insurance limits. At the close of 2024, the amount held at correspondent banks, excluding the Federal Reserve Bank, that exceeded the FDIC insurable limit of $250,000 was $10.7 million. This indicates a reliance on these institutions for managing operational cash flows beyond insured limits.

FinTech vendors for mobile and online banking platforms

First Guaranty Bancshares, Inc. is working toward utilizing automation and technological advances as part of its strategy to achieve cost savings, with anticipated pre-tax savings of about $3.0 million per quarter for 2025. While specific vendor names aren't public in the latest filings, the technology segment generally involves partners for:

• Digital Banking platforms.
• Loan Origination Systems (LOS/POS).
• Core Banking Platform support.

Loan participation partners for commercial lending risk distribution

Risk distribution through loan participations is a component of First Guaranty Bancshares, Inc.'s strategy to reduce loan concentration risk, particularly in commercial real estate. The reduction in total loan balances, which fell to $2.3 billion as of September 30, 2025, from $2.7 billion at December 31, 2024, occurred due to participations, payoffs, write offs, and loan sales. The loan portfolio was $2.3 billion as of September 30, 2025.

Federal Home Loan Bank (FHLB) for secured borrowing capacity

The Federal Home Loan Bank (FHLB) remains a source of secured borrowing capacity, though the bank's loan-to-deposit ratio fell to 68% in Q2 2025, suggesting less immediate need for wholesale funding compared to a ratio of 92% a year prior. The bank held FHLB stock, at cost, amounting to $9,956 as of June 30, 2025. Older data points to specific FHLB advances:

This older data was as of December 31, 2023.

Local community organizations for market presence

First Guaranty Bancshares, Inc.'s physical market presence is established through its branch network across four states. The bank operates 31 locations throughout Louisiana, Texas, Kentucky, and West Virginia. The bank's total deposits stood at $3.4 billion as of September 30, 2025.

Here is a quick look at the scale of some of these relationships as of mid-to-late 2025 reporting periods:

Finance: draft 13-week cash view by Friday.

First Guaranty Bancshares, Inc. (FGBI) - Canvas Business Model: Key Activities

You're looking at the core actions First Guaranty Bancshares, Inc. is taking to run its business as of late 2025, based on their latest filings. It's a period defined by significant risk mitigation efforts, so the activities reflect that focus.

Origination and servicing of diverse loan portfolio

First Guaranty Bancshares, Inc. actively manages a portfolio that includes commercial real estate loans, construction and development loans, commercial and industrial loans, agribusiness loans, and residential mortgage loans. The bank has been intentionally shrinking this portfolio to manage credit risk.

Here's the quick math on the portfolio reduction through the third quarter of 2025:

The servicing activity included strategic sales to reduce concentration risk. For example, in the first quarter of 2025, First Guaranty Bancshares, Inc. sold two commercial real estate loans totaling $70 million, which resulted in a loss of $5.8 million on the sale.

Active management of asset quality and credit risk reduction

This is a major focus area, evidenced by the sharp increase in reserves set aside to cover potential loan losses. The bank is building its allowance for credit losses (ACL) aggressively.

• Provision for Credit Losses (Q3 2025): $47.9 million.
• Provision for Credit Losses (Q2 2025): $16.6 million.
• Provision for Credit Losses (Q1 2025): $14.5 million.

The resulting allowance and asset quality metrics show the scale of the issue and the response:

Nonperforming assets have surged to over 5% of gross loans in 2024 and 2025, up from less than 1% previously. The bank is actively working to bring that down.

Deposit gathering across retail and commercial accounts

Despite the loan contraction, deposit gathering has been successful. First Guaranty Bancshares, Inc. offers checking accounts, savings accounts, money market accounts, and certificates of deposit for both personal and business needs.

The deposit base is strong, which positions the bank well for future lending:

• Total Deposits (September 30, 2025): $3.4 billion.
• Total Deposits (December 31, 2024): $3.5 billion.
• Deposit Growth in Q2 2025: 4.3%.
• Year over Year Deposit Growth (as of latest report): More than 14%.

This dynamic has dramatically shifted the bank's funding profile. The loan to deposit ratio has fallen from 92% to 68% in just over a year.

Maintaining regulatory compliance and capital adequacy

The focus on risk reduction and expense management is intended to support capital levels. The company's total assets as of September 30, 2025, stood at $3.8 billion, down from $4.0 billion at the end of 2024.

The risk-weighted capital ratio improved to 12.34% as of September 30, 2025.

Enhancing digital banking and cash management services

First Guaranty Bancshares, Inc. provides ancillary services to support its customer relationships. These activities include maintaining and enhancing:

• Cash management services.
• Online and mobile banking platforms.
• Treasury services.
• Merchant card processing.

The company also reduced its full-time equivalent employees to 360 at June 30, 2025, down from 495 at June 30, 2024, as part of operational efficiency efforts.

First Guaranty Bancshares, Inc. (FGBI) - Canvas Business Model: Key Resources

The Key Resources for First Guaranty Bancshares, Inc. are centered on its financial base, physical footprint, and human capital, all critical for executing its community banking strategy.

The core financial resources supporting operations as of the end of the third quarter of 2025 are substantial, though reflecting recent balance sheet adjustments.

The physical infrastructure is built around a network of community branch offices, which is a direct link to the customer base and local market knowledge.

• Network of community branch offices in core markets: Louisiana, northeast Texas, Kentucky, and West Virginia.
• The bank operates across its established footprint, which historically included around 30 to 36 locations.

The human capital, particularly the leadership and the general workforce, represents a vital, non-physical asset for First Guaranty Bancshares, Inc.

• Experienced management team with deep community roots, including leadership like the Chairman and CEO/President.
• The team is committed to local decision-making power.
• Total workforce size: 339 full-time equivalent employees (FTEs).

The FTE count is a measure of the operational capacity supporting the delivery of services across the network.

This combination of tangible assets, like the balance sheet figures, and intangible assets, like the management expertise and branch presence, forms the foundation of First Guaranty Bancshares, Inc.'s ability to serve its communities.

First Guaranty Bancshares, Inc. (FGBI) - Canvas Business Model: Value Propositions

The core value First Guaranty Bancshares, Inc. offers centers on its deep-rooted, localized approach to banking, contrasting with larger, more distant financial institutions.

Stability from a bank founded in 1932

You benefit from a long operational history, which provides a sense of permanence in an industry where other banks may come and go. First Guaranty Bank was established in 1934, meaning it has weathered over 91 years of economic cycles. This longevity suggests a commitment to its customer base across multiple generations of banking trust.

Relationship-driven, personalized community banking service

First Guaranty Bancshares, Inc. maintains a physical presence to foster these relationships. As of late 2025, the bank operates 31 locations across Louisiana, Texas, Kentucky, and West Virginia. This local footprint supports a commitment to personalized service, backed by operational efficiency efforts that saw noninterest expense reduced to $17.3 million in the second quarter of 2025. Furthermore, the bank actively engages in community education, having developed (6) financial wellness seminars designed to help people understand important financial topics.

Diversified lending: commercial real estate to residential mortgages

The lending portfolio shows a focus on real estate secured assets, while management actively works to reduce concentration risk, especially in commercial real estate (CRE). As of September 30, 2025, total loans stood at $2.3 billion, against total assets of $3.8 billion. The bank is clearly executing a strategy to reduce its CRE exposure, which is a key value proposition for risk-aware clients.

The allowance for credit losses (ACL) was proactively strengthened to 3.76% of total loans as of September 30, 2025, signaling a defensive posture against potential credit events.

Local decision-making for faster, tailored financial solutions

You get the advantage of having loan decisions made locally, which is a direct benefit of the community bank structure. This local power is positioned to help meet customer needs and expectations faster than centralized models. The bank has streamlined operations, with full-time equivalent employees (FTE) at 360 as of June 30, 2025, suggesting a leaner structure supporting quicker local responses.

Essential cash management and treasury services for businesses

For your business operations, First Guaranty Bancshares, Inc. provides necessary tools to manage working capital and payment processing efficiently. These services help businesses manage cash flow and streamline receivables.

• Cash Management, including automated fund movement.
• Lockbox Service to increase collection speed of accounts receivables.
• Merchant Services to securely accept payments via swipe, tap, or online methods.
• Payroll Services, offered in partnership with Paychex, Inc., covering tax preparation and reporting.
• Tax Services and Overdraft Services.

Finance: draft 13-week cash view by Friday.

First Guaranty Bancshares, Inc. (FGBI) - Canvas Business Model: Customer Relationships

You're looking at how First Guaranty Bancshares, Inc. keeps its clients close, which is definitely a core part of their community bank DNA. They focus on a high-touch approach, especially for their commercial base, even while managing a significant risk reduction in their loan book as of late 2025.

Dedicated relationship managers for commercial clients

First Guaranty Bancshares, Inc. emphasizes its regional presence across Louisiana, Texas, Kentucky, and West Virginia, operating through 31 locations to support local businesses. This physical footprint supports the dedicated relationship manager model for commercial clients, which is key to their lending strategy, even as they actively reduced their total loan balances to $2.3 billion as of September 30, 2025. This relationship focus is contrasted by the need to manage credit quality, evidenced by the $47.9 million provision for credit losses recorded in the third quarter of 2025.

High-touch, personalized service model at branch level

The bank stresses personalized service and local decision-making, a hallmark of their community banking roots. This is supported by their network of physical branches, which was 31 locations as of late 2025. To gauge the service capacity, the full-time equivalent employee count was 399 at December 31, 2024. The commitment to personalized outreach is also visible in their marketing automation, where they launched 26 targeted campaigns, including multi-channel email and direct mail for Automated Onboarding triggered within 24 hours of new customer acquisition. This high-touch service is designed to foster long-term relationships.

Automated self-service via mobile and online banking

Alongside the in-person service, First Guaranty Bancshares, Inc. provides modern digital tools. Ancillary services include online and mobile banking platforms for checking, savings, and certificate of deposit management. This digital layer helps manage the large customer base that supports their $3.4 billion in total deposits as of September 30, 2025.

Long-term client relationship focus, a defintely high priority

Building client relationships is explicitly mentioned as a focus for First Guaranty Bank since its founding. This focus is critical for maintaining the deposit base while the bank executes its strategy to reduce loan concentration risk, particularly in commercial real estate. The bank has a history of paying consecutive dividends, marking 128 consecutive payments as of Q2 2025. The strategy is to foster economic development in core markets while delivering value, which requires sustained client commitment.

Proactive communication regarding asset quality management

The management team has been proactive in communicating and managing credit risk, which directly impacts client trust. Nonaccrual loans stood at $119.2 million at June 30, 2025. The bank recorded a $47.9 million provision for credit losses in Q3 2025, with a significant portion, $39.8 million, tied to a single commercial lease relationship. The allowance for credit losses totaled $57.0 million at June 30, 2025. This active management, though costly in the short term, is part of the communication strategy to assure stakeholders of a fortress balance sheet focus.

Here's a look at the scale of the balance sheet supporting these customer relationships as of the third quarter of 2025:

The bank's operational focus includes efficiency measures, such as reducing noninterest expense by $3.3 million in Q2 2025 compared to Q2 2024, aiming for an annual run rate saving of approximately $13.4 million. This efficiency helps support the relationship model despite the challenging credit environment.

First Guaranty Bancshares, Inc. (FGBI) - Canvas Business Model: Channels

You're looking at how First Guaranty Bancshares, Inc. gets its services to customers as of late 2025. The channel mix shows a clear pivot toward efficiency, balancing a physical footprint with digital access, especially as the firm actively manages its physical presence.

Physical branch network in Louisiana, Texas, and Florida

First Guaranty Bank maintains a physical presence across several states, though the most recent data indicates a network spanning Louisiana, Texas, Kentucky, and West Virginia, rather than Florida. The total number of locations has been actively managed as part of the bank's risk reduction strategy. As of the third quarter of 2025, First Guaranty has 31 locations across these states. This is down from 35 locations at the end of 2024, and the reduction was partially driven by specific actions in the first quarter of 2025, where the company closed three branches and consolidated two existing branches into one location in Louisiana. This streamlining effort is part of a broader strategy that also saw a reduction in full-time equivalent employees to 360 as of June 30, 2025, down from 491 at December 31, 2023.

The physical channel remains critical for relationship banking, particularly for the commercial and industrial (C&I) loan business, which is a focus area alongside commercial real estate, construction/development, agribusiness, and residential mortgage loans.

Here's a look at the physical footprint evolution:

Online banking portal for retail and business customers

First Guaranty Bancshares, Inc. supports its customer base through a dedicated online banking portal serving both retail and business segments. This digital channel is essential for routine transactions and account management, supporting services like checking, savings, money market accounts, and certificates of deposit.

Mobile banking application for 24/7 access

The mobile banking application provides customers with around-the-clock access to their accounts. This channel is listed alongside ancillary services such as cash management and treasury services, indicating its role in modernizing customer interaction.

Direct sales force for commercial and industrial (C&I) loans

The origination of loans, including commercial and industrial (C&I) loans, is facilitated through a direct sales force approach, which complements the branch network for more complex commercial relationships. The total net loan balance as of September 30, 2025, stood at $2.3 billion, reflecting the ongoing strategic reduction from $2.7 billion at year-end 2024.

ATMs and merchant card processing terminals

The physical access network is augmented by ATMs and merchant card processing capabilities. As of the Fourth Quarter 2024 report, First Guaranty Bancshares, Inc. reported operating 54 ATMs. The revenue generated through this channel is reflected in the Noninterest Income figures; for the fourth quarter of 2024, ATM and debit card fees totaled $780 thousand.

The overall Noninterest Income for the fourth quarter of 2024 was $2,500 thousand.

The key digital and transaction channels include:

• Online banking portal for retail and business use.
• Mobile banking application for on-the-go access.
• Merchant card processing services.

First Guaranty Bancshares, Inc. (FGBI) - Canvas Business Model: Customer Segments

First Guaranty Bancshares, Inc. primarily serves markets in southeastern Louisiana and parts of eastern Texas, with selective expansion into central Florida. You'll find their community branch offices supporting local needs across Louisiana, Texas, Kentucky, and West Virginia, totaling 31 locations as of late 2025.

The lending side targets specific client needs, which directly maps to several key customer segments. As of September 30, 2025, the total loan portfolio stood at $2.3 billion. The bank's strategy has been actively reducing this balance, down from $2.51 billion at the end of Q1 2025.

The customer segments are served through distinct lending and deposit product offerings. The bank offers checking accounts, savings accounts, money market accounts, and certificates of deposit for both personal and business needs. Total deposits were reported at $3.4 billion as of September 30, 2025.

Here is a look at the composition of the loan portfolio, using the latest available percentage breakdown from March 31, 2024, to illustrate the focus areas for these segments, applied against the September 30, 2025, total loan balance of $2.3 billion:

You'll see that the bank is actively managing risk, having reduced total loans by $414.0 million, or 15.4%, compared to December 31, 2024. This reduction strategy impacts the current mix serving these segments. The allowance for credit losses increased to 3.76% of total loans as of September 30, 2025, up from 1.29% at year-end 2024.

The core customer base is concentrated geographically, focusing on relationship-driven banking within its established regions.

• Most personal, commercial, and residential loans are granted to customers in northern and southern Louisiana.
• The bank provides ancillary services like cash management and treasury services, which support the business segments.
• The bank declared a reduced cash dividend of $0.01 per common share for Q3 2025, down from $0.08 in Q3 2024, to preserve capital.

Finance: draft 13-week cash view by Friday.

First Guaranty Bancshares, Inc. (FGBI) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive First Guaranty Bancshares, Inc.'s expenses as of late 2025. This is the cost side of the ledger, and right now, it's dominated by credit quality issues and necessary operational overhead.

The cost structure is heavily influenced by provisions for potential loan losses and significant one-time charges. For the third quarter ending September 30, 2025, the Provision for Credit Losses hit $47.9 million. To give you a sense of scale, this provision was a primary driver behind the net loss of $45.0 million reported for that quarter.

Noninterest expense also saw a major hit in Q3 2025. The total noninterest expense was reported at $30.2 million. A significant portion of this was a one-time, non-cash charge. Specifically, First Guaranty Bancshares, Inc. recorded a $12.9 million goodwill impairment in Q3 2025. Excluding that impairment, the core noninterest expense was a much more stable $17.3 million for the quarter. That $17.3 million figure reflects the ongoing operational costs you'd expect.

Here is a breakdown of the key cost drivers for the third quarter of 2025:

Personnel costs are a fixed component of the noninterest expense base. As of September 30, 2025, First Guaranty Bancshares, Inc. maintained a workforce of 339 full-time equivalent employees. To put that in perspective, salaries and employee benefits expense was $7.9 million in the fourth quarter of 2024, which was lower than the preceding quarters that year. This suggests that the current operating cost base, even excluding the goodwill charge, includes substantial fixed labor costs.

The operating costs for the physical footprint and technology infrastructure fall within that core noninterest expense. These costs cover the branch network and the systems supporting the bank's operations. For example, Occupancy and equipment expense was $2.831 million in the fourth quarter of 2024. Management has been focused on efficiency, as evidenced by the FTE reduction from 404 year-over-year.

The interest expense component, while not isolated here, is reflected in the Net Interest Income. For Q3 2025, Net Interest Income was reported at $22.2 million, and the revenue net of interest expense was $24.1 million for the period. This shows the ongoing cost of funding, which is a primary driver for any bank's cost structure.

Key personnel and operational metrics impacting costs include:

• Full Time Equivalent Employees as of September 30, 2025: 339.
• Goodwill Impairment Charge: $12.9 million in Q3 2025.
• Provision for Credit Losses: $47.9 million in Q3 2025.
• Noninterest Expense (Excluding Impairment): $17.3 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

First Guaranty Bancshares, Inc. (FGBI) - Canvas Business Model: Revenue Streams

You're looking at the core ways First Guaranty Bancshares, Inc. brings in money as of late 2025. For a bank holding company like First Guaranty Bancshares, Inc., the primary engine is almost always the difference between what it earns on its assets and what it pays out on its liabilities-that's the net interest income.

As of September 30, 2025, First Guaranty Bancshares, Inc. held total loans net of unearned income amounting to $2.3 billion. The income generated from this portfolio, along with other interest-earning assets, is critical. For the third quarter of 2025, the company reported net interest income of $22.2 million or $22.24 million. This figure represents the core earnings before considering non-interest sources.

To give you a fuller picture of the interest side, the total interest income for the three months ended September 30, 2025, was $53.5 million. This total interest income encompasses the yield from the loan portfolio and interest/dividends earned on investment securities. The revenue reported for Q3 2025, which is often presented net of interest expense in some contexts, was $24.1 million. This figure is distinct from the total revenue of $55.4 million also reported for that period.

First Guaranty Bancshares, Inc. also relies on non-interest income, which comes from various service activities. While specific dollar amounts for these fee components aren't always broken out in the headline figures, the streams themselves are key parts of the business model. Here's a look at the major components contributing to the overall revenue picture for the third quarter of 2025:

The non-interest income is generated through several fee-based services that First Guaranty Bancshares, Inc. offers its commercial and retail clients. These fees provide a diversification benefit away from pure lending margins. The specific revenue streams from these activities include:

• Non-interest income from service charges and fees.
• Fees derived from cash management services.
• Revenue from merchant card processing operations.

It's important to note that the revenue for the last twelve months ending September 30, 2025, was reported as $13.04 million, showing a significant year-over-year decline of 86.35%. This sharp drop is heavily influenced by the large provision for credit losses recorded in Q3 2025, which impacts the overall reported revenue figures when provisions are factored in, as seen in the $(23.84)M 'Total Business Revenue (Loss), net of provision for credit losses' for Q3 2025.

Finance: draft Q4 2025 revenue projection by next Tuesday.