First Guaranty Bancshares swings to quarterly loss on exposure to auto parts bankruptcy

(Reuters) -First Guaranty Bancshares on Friday said it has swung to a third-quarter loss, as the lender booked an impairment charge and increased reserves for bad loans linked to an auto parts manufacturer bankruptcy.

Several U.S. banks, including Fifth Third and JPMorgan Chase, have recently been affected by the bankruptcies of auto parts maker First Brands and subprime lender Tricolor, raising market concerns.

While overall credit quality remains strong, isolated events have heightened investor concerns about risks in the U.S. banking sector, sparking a selloff in the sector earlier this month.

First Guaranty said it has a $52 million credit exposure to entities related to an unnamed auto parts manufacturer that declared Chapter 11 bankruptcy during the third quarter.

The lender did