First Guaranty Bancshares, Inc.

What they do

First Guaranty Bancshares operates through its wholly-owned subsidiary, First Guaranty Bank, a Louisiana state-chartered commercial bank with 30 banking facilities. The bank attracts deposits from consumers, small businesses, and municipalities and invests in loans, primarily commercial real estate, commercial and industrial, residential, and construction loans. It also invests in securities, including U.S. government and agency obligations and mortgage-backed securities. The company offers a range of deposit accounts and digital banking services including mobile banking, bill pay, and business solutions like remote deposit capture and ACH origination.

Revenue drivers

• Net interest income — The primary revenue source, driven by the spread between interest earned on loans and securities and interest paid on deposits and borrowings. For the six months ended June 30, 2026, net interest income was $42.97 million.
• Noninterest income — Includes service charges, commissions and fees, ATM and debit card fees, and other fees. For the six months ended June 30, 2026, total noninterest income was $4.11 million.
• Loan portfolio income — Interest on loans, including fees, is the largest component of interest income. For the six months ended June 30, 2026, loan interest income was $66.37 million, down from $83.98 million in the prior year period.

Recent performance

For the second quarter of 2026, the company reported net income of $3.4 million, its third consecutive quarter of positive earnings, compared to a net loss of $7.3 million in the same quarter of 2025. For the six months ended June 30, 2026, net income was $6.2 million versus a net loss of $13.5 million in the prior year period. Total assets at March 31, 2026 were $3.96 billion, with total loans of $1.9 billion and deposits of $3.5 billion. The allowance for credit losses was 2.00% of total loans at March 31, 2026, up from 1.97% at year-end 2025. The company reported a net loss of $56.0 million for the full year 2025, with diluted EPS of -$4.17.

Strategy

The company announced a purchase and assumption agreement to exit the Dallas-Fort Worth-Arlington and Waco, Texas markets, as disclosed in an 8-K filed March 9, 2026. Management emphasizes strengthening the balance sheet, improving asset quality, and enhancing capital position. The company continues to invest in digital banking services, including mobile banking and business tools. It also maintains a quarterly dividend on common stock, which has been paid for 130 consecutive quarters as of December 31, 2025.

Risks

• Nonperforming assets — At December 31, 2025, non-performing assets were $95.5 million, or 2.34% of total assets, which remains significantly above historical levels and may continue to adversely affect net income.
• Geographic concentration — The business is concentrated in Louisiana, Texas, Kentucky, and West Virginia, and adverse economic or weather events in these regions could materially harm results.
• Interest rate risk — Changes in interest rates could reduce net interest margins and the fair value of financial instruments, impacting earnings.
• Loan portfolio credit risk — The loan portfolio includes commercial real estate and syndicated loans, which could experience higher defaults and require increased provision for credit losses.

Outlook

Management anticipates continued positive earnings momentum, with the company reporting its third consecutive quarter of positive net income in Q2 2026. The planned exit from the Texas markets is expected to streamline operations and reduce risk. The company will continue to focus on asset quality and capital improvement. No forward-looking guidance was provided.