First Guaranty Bank Reports Second Quarter 2026 Results in Hammond, LA – SEC Filing & Financial Highlights

First Guaranty Bancshares, Inc. Reports Strong Second Quarter 2026 Results: Earnings, Balance Sheet, and Strategic Highlights

HAMMOND, LA – July 31, 2026 – First Guaranty Bancshares, Inc. (NASDAQ: FGBI, FGBIP) has released its financial results for the second quarter ended June 30, 2026. The company delivered its third consecutive quarter of positive earnings, highlighted by improvements in capital ratios, asset quality, and operational efficiency. The report includes a detailed financial breakdown, balance sheet strength, and strategic initiatives that may be of significant interest to shareholders and could potentially impact share value.

Key Financial Highlights

Net Income: \$3.4 million for Q2 2026, with \$6.2 million in net income year-to-date.
Earnings Per Common Share: \$0.17 for Q2 2026, up from \$0.14 in Q1 2026 and \$0.12 in Q4 2025.
Return on Average Assets: 0.35% for Q2 2026.
Return on Average Common Equity: 5.95% for Q2 2026.
Book Value Per Common Share: \$11.75, compared to \$15.21 one year earlier.
Weighted Average Common Shares Outstanding: 16,060,000.

Balance Sheet and Capital Position

Total Assets: \$3.9 billion at June 30, 2026.
Total Loans: \$1.8 billion, reflecting a managed reduction from \$2.4 billion at June 30, 2025.
Total Deposits: \$3.5 billion, largely unchanged from the prior year.
Total Risk-Based Capital Ratio: Exceeded 16% at June 30, 2026, up sharply from 11.28% at June 30, 2024, indicating a significant improvement in the company’s capital strength.
Shareholders’ Equity: \$227.4 million at June 30, 2026.
Allowance for Credit Losses: 1.94% of total loans, considered robust given the risk profile.
Commercial Real Estate Concentration: Approximately 254.4% of total bank capital, below regulatory guidance thresholds.
Non-Accrual Loan Improvement: A \$14 million non-accrual relationship paid off during the quarter, significantly improving the loan portfolio’s quality.

Operational and Strategic Developments

Operational Efficiency: The bank continues to invest in artificial intelligence solutions aimed at lowering operational costs and improving customer service.
Dividend Record: 132 consecutive dividends paid, underscoring the bank’s commitment to returning value to shareholders.
Branch Network: 30 locations and 40 ATMs, demonstrating a strong community presence in Louisiana, Texas, Kentucky, and West Virginia.
Asset Quality Focus: The company has actively managed its loan and deposit portfolio to reduce balance sheet risk and improve credit quality.

Shareholder-Relevant, Price-Sensitive Information

Capital Ratio Surge: The jump in the Total Risk-Based Capital Ratio to over 16% is a major positive development. This not only signals greater financial strength and resilience but also provides room for future growth and regulatory compliance.
Non-Accrual Loan Payoff: The payoff of a \$14 million non-accrual loan relationship in Q2 2026 is a significant event, directly reducing risk and enhancing the overall credit profile of the bank’s portfolio.
Consistent Dividends: The ongoing payment of dividends, even during periods of sector uncertainty, may support share value and attract income-focused investors.
Earnings Growth Momentum: The sequential increase in earnings per share over the last three quarters indicates positive momentum and may influence forward-looking investor sentiment.
AI-Driven Cost Reduction: Strategic investments in artificial intelligence for cost management and customer experience signal forward-thinking management and potential for margin expansion.

Income Statement Highlights

Six Months Ended June 30:

Total Interest Income: \$103.6 million (down from \$108.8 million in 2025, primarily due to lower loan interest income offset by higher securities income).
Total Interest Expense: \$60.6 million (down from \$64.3 million).
Net Interest Income after Provision for Credit Losses: \$37.7 million (up from \$13.3 million in 2025, due to a significant reduction in provision for credit losses).
Noninterest Income: \$4.1 million.
Noninterest Expense: \$33.9 million (down from \$35.3 million).
Net Income (Loss): \$6.2 million (vs. a loss of \$13.5 million in 2025).

Three Months Ended June 30:

Total Interest Income: \$51.3 million.
Net Interest Income (after provision): \$19.7 million.
Net Income Available to Common Shareholders: \$2.85 million (up from a net loss of \$7.88 million in Q2 2025).
Cash Dividends Paid: \$0.01 per common share.

Other Noteworthy Items

Goodwill Write-off: Goodwill was reduced to zero, down from \$12.9 million in the prior year. This accounting change may have previously impacted earnings and may affect future period comparisons.
Reduction in Allowance for Credit Losses: The allowance has been significantly reduced from \$58.87 million to \$34.30 million, reflecting improved asset quality.
Deposit Mix Shift: Notable movement from interest-bearing demand and savings to time deposits over the year, likely reflecting market rate conditions and deposit competition.

Management Commentary

“I am pleased to report that First Guaranty achieved its third consecutive quarter of positive earnings while continuing to strengthen our balance sheet, improve asset quality, and enhance our capital position. Our Total Risk-Based Capital Ratio exceeded 16% at June 30, 2026, up from 11.28% at June 30, 2024. A \$14.0 million non-accrual relationship paid off during the quarter, meaningfully improving our loan portfolio. First Guaranty continues to invest in operational efficiency, including the use of artificial intelligence solutions designed to lower costs and improve customer service. We remain committed to providing essential banking services to our local communities and to returning value to our shareholders.”

— Alton Lewis, CEO/President

Potential Share Price Catalysts

Material improvement in capital ratios and asset quality could drive positive investor sentiment and upward price movement.
Three consecutive quarters of earnings growth and recovery from prior year losses may support a rerating by the market.
Ongoing dividend payments provide income stability and may attract new investor classes.
AI-driven operational improvements may result in future cost savings and higher profitability.
Resolution of significant non-performing assets (the \$14M payoff) removes a key risk overhang and is likely to be viewed favorably by analysts and investors.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors should perform their own research and consider their personal financial situation before making any investment decisions. The information is based on public filings and may be subject to change or correction.