First Guaranty Bancshares, Inc.FGBI
First Guaranty Bancshares, Inc. Income Taxes Disclosure
Income Taxes
The following is a summary of the provision for income taxes included in the Consolidated Statements of Income:
| December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| Current: | |||||||||||
| Federal | $ | (73) | $ | 3,178 | |||||||
State(1) | (417) | 340 | |||||||||
| Total Current | (490) | 3,518 | |||||||||
| Deferred: | |||||||||||
| Federal | (11,817) | 40 | |||||||||
| State | (231) | — | |||||||||
| Total Deferred | (12,048) | 40 | |||||||||
| Total | $ | (12,538) | $ | 3,558 | |||||||
(1) For the years presented , Texas, West Virginia and Kentucky make up the taxes in this category.
The following table presents income taxes paid, net of refunds for the periods below:
| December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| Federal | $ | 4,100 | $ | — | |||||||
| State | 50 | — | |||||||||
| Total | $ | 4,150 | $ | — | |||||||
The difference between income taxes computed by applying the statutory federal income tax rate and the provision for income taxes in the financial statements is reconciled as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| (in thousands except for %) | Amount | Rate | Amount | Rate | |||||||||||||||||||
| $ | (14,398) | (21.0) | % | $ | 3,361 | 21.0 | % | ||||||||||||||||
State tax, net of federal income tax effect (1) | (512) | (0.8) | % | 268 | 1.7 | % | |||||||||||||||||
| Tax exempt municipal income | (152) | (0.2) | % | (146) | (0.9) | % | |||||||||||||||||
| Goodwill impairment not deductible | 2,709 | 4.0 | % | — | — | % | |||||||||||||||||
| Other | (185) | (0.3) | % | 75 | 0.4 | % | |||||||||||||||||
| Total | $ | (12,538) | (18.3) | % | $ | 3,558 | 22.2 | % | |||||||||||||||
(1) For the years presented , Texas, West Virginia and Kentucky make up the taxes in this category.
Deferred taxes are recorded based upon differences between the financial statement and tax basis of assets and liabilities, and available tax credit carry forwards. Temporary differences between the financial statement and tax values of assets and liabilities give rise to deferred taxes. The significant components of deferred taxes classified in First Guaranty's Consolidated Balance Sheets at December 31, 2025 and 2024 are as follows:
| December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| Deferred tax assets: | |||||||||||
| Allowance for credit losses | $ | 8,907 | $ | 7,596 | |||||||
| Unrealized losses on available for sale securities | — | 677 | |||||||||
| Unrealized losses on available for sale securities transferred to held to maturity | 2,458 | 2,743 | |||||||||
| Net operating loss | 10,638 | 822 | |||||||||
| Other | 705 | 277 | |||||||||
| Gross deferred tax assets | 22,708 | 12,115 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Depreciation and amortization | (1,668) | (2,058) | |||||||||
| Core deposit intangibles | (485) | (622) | |||||||||
| Discount on purchased loans | (99) | (118) | |||||||||
| Other real estate owned | (75) | — | |||||||||
| Unrealized gains on available for sale securities | (515) | — | |||||||||
| Other | (1,196) | (1,367) | |||||||||
| Gross deferred tax liabilities | (4,038) | (4,165) | |||||||||
| Net deferred tax assets (liabilities) | $ | 18,670 | $ | 7,950 | |||||||
First Guaranty determined that the net deferred tax asset at December 31, 2025 and 2024 was more likely than not to be realized based on an assessment of all available positive and negative evidence, and therefore no valuation allowance was recorded.
Net operating loss carryforwards for income tax purposes were $49.7 million and $3.9 million as of December 31, 2025 and 2024, respectively. The carryforwards were the result of the net operating loss generated in 2025 of $46.2 million and amounts acquired in 2017 in the Premier acquisition. The acquisition related losses expire from 2027 to 2034, and will be utilized subject to annual Internal Revenue Code Section 382 limitations. The net operating loss generated in 2025 can offset up to 80% of future taxable income and can be carried forward indefinitely.
ASC 740-10, Income Taxes, clarifies the accounting for uncertainty in income taxes and prescribes a recognition threshold and measurement attribute for the consolidated financial statements recognition and measurement of a tax position taken or expected to be taken in a tax return. First Guaranty does not believe it has any unrecognized tax benefits included in its consolidated financial statements. First Guaranty has not had any settlements in the current period with taxing authorities, nor has it recognized tax benefits as a result of a lapse of the applicable statute of limitations. First Guaranty recognizes interest and penalties accrued related to unrecognized tax benefits, if applicable, in noninterest expense. During the years ended December 31, 2025 and 2024, First Guaranty did not recognize any interest or penalties in its consolidated financial statements, nor has it recorded an accrued liability for interest or penalty payments.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 16, 2020 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 30, 2017 | |
| 2015 | Mar 28, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.