Recent developments include the completion of the sale of Texas operations to Armstrong Bank, reported net income improvements in Q2 2026, and ongoing management of credit losses and capital resources.

• First Guaranty Bancshares completed the sale of its Texas operations, including five branches and related deposits and loans, to Armstrong Bank on July 31, 2026. The transaction included approximately $234 million in deposits and $80 million in loans [N1].
• The company reported net income of $3.4 million for the three months ended June 30, 2026, and $6.2 million for the six months ended June 30, 2026, reflecting improvements from prior year losses [N1][S2].
• Total assets decreased to $3.9 billion at June 30, 2026 from $4.1 billion at December 31, 2025, with total loans decreasing to $1.8 billion and total deposits to $3.5 billion over the same period [S2].
• The allowance for credit losses was 1.94% of total loans at June 30, 2026, slightly down from 1.97% at December 31, 2025, with provisions for credit losses decreasing in 2026 [S2].
• Nonaccrual loans decreased to $40.6 million at June 30, 2026 from $59.6 million at December 31, 2025, indicating some improvement in asset quality [S2].
• The company maintained capital ratios above regulatory minimums and declared a cash dividend of $0.01 per common share in Q2 2026, continuing a record of 132 consecutive quarterly dividends [S2].

The company’s focus on personalized service and localized decision making in regional markets supports customer retention and competitive positioning. The completion of the Texas operations sale may allow management to concentrate resources on core markets. Recent improvements in net income and reductions in credit loss provisions indicate progress in financial performance. Maintaining capital ratios above regulatory minimums and continuing dividend payments reflect financial discipline and shareholder return focus.

The company faces risks from credit losses and nonperforming assets, particularly in commercial real estate and healthcare-related loans. The reduction in loan portfolio and deposits may impact net interest income and overall revenue. Regulatory consent orders and capital requirements impose operational constraints. Market interest rate fluctuations and economic conditions in regional markets could affect margins and asset quality. The sale of Texas operations reduces geographic diversification and may concentrate risk exposure.

First Guaranty Bancshares' moat is based on its regional focus and personalized service model, emphasizing close customer relationships and localized decision making. This approach aims to differentiate the bank from larger competitors by offering tailored commercial banking services and competitive pricing in its core markets. The company's established presence in multiple metropolitan areas within Louisiana, Texas, Kentucky, and West Virginia supports customer access and loyalty. Additionally, regulatory capital compliance and risk management practices contribute to operational stability, supporting the bank's ability to serve its markets effectively.

• Credit Risk and Asset Quality: The company has experienced elevated provisions for credit losses and charge-offs, particularly related to commercial real estate and healthcare-related loans. Nonperforming loans and other real estate owned remain material, requiring ongoing monitoring and management.
• Regulatory and Capital Constraints: The company is subject to regulatory capital requirements and a consent order that may limit operational flexibility, including dividend payments and funding sources. Maintaining capital ratios above minimums is critical to avoid regulatory penalties.
• Market and Economic Conditions: Fluctuations in interest rates and economic conditions in the company’s regional markets can impact net interest income, loan demand, and asset quality. Changes in consumer and business borrowing and spending habits may affect financial performance.
• Operational Risks from Strategic Changes: The sale of Texas operations reduces geographic diversification and may concentrate risk. Integration and execution risks exist in managing the remaining portfolio and customer relationships.

• First Guaranty Bancshares, Inc. is a Louisiana corporation and financial holding company headquartered in Hammond, Louisiana, with a wholly-owned subsidiary, First Guaranty Bank, a Louisiana-chartered commercial bank.
• The bank provides personalized commercial banking services primarily to customers in Louisiana and Texas through 30 banking facilities located in metropolitan statistical areas including Hammond, Baton Rouge, Lafayette, Shreveport-Bossier City, Alexandria in Louisiana, Dallas-Fort Worth-Arlington, Waco in Texas, and markets in Kentucky and West Virginia.
• The company emphasizes personal relationships, localized decision making, and competes principally on personal service, customer access to officers and directors, and competitive interest rates and fees.
• Total assets were approximately $4.1 billion at December 31, 2025, decreasing to $3.9 billion at June 30, 2026.
• Total loans decreased from $2.1 billion at December 31, 2025 to $1.8 billion at June 30, 2026, reflecting a reduction in loan portfolio.
• Total deposits were $3.6 billion at December 31, 2025 and decreased to $3.5 billion at June 30, 2026.
• Shareholders' equity was $226.2 million at December 31, 2025 and increased slightly to $227.4 million at June 30, 2026.
• Net income was $3.4 million for the three months ended June 30, 2026, and $6.2 million for the six months ended June 30, 2026, compared to losses in prior periods.
• Earnings per common share were $0.17 for the three months ended June 30, 2026 and $0.31 for the six months ended June 30, 2026.
• The allowance for credit losses was approximately 1.94% of total loans at June 30, 2026, slightly down from 1.97% at December 31, 2025.
• Net interest income was $22.3 million for the three months ended June 30, 2026 and $43.0 million for the six months ended June 30, 2026.
• Provision for credit losses decreased to $2.6 million for the three months ended June 30, 2026 and $5.3 million for the six months ended June 30, 2026, down from higher provisions in prior periods.
• Charge-offs were $7.7 million during the three months ended June 30, 2026 and $13.2 million for the six months ended June 30, 2026, with recoveries of $0.9 million and $1.5 million respectively.
• Nonaccrual loans decreased to $40.6 million at June 30, 2026 from $59.6 million at December 31, 2025.
• Investment securities totaled $1.2 billion at June 30, 2026, with available for sale securities at $890.8 million and held to maturity securities at $323.2 million.
• The company completed the sale of its Texas operations, consisting of five branches and related deposits and loans, to Armstrong Bank on July 31, 2026.
• The sale included approximately $234 million in deposits and $80 million in loans.
• First Guaranty Bancshares has paid 132 consecutive quarterly dividends as of June 30, 2026, with a cash dividend of $0.01 per common share declared in Q2 2026.
• The company has a capital conservation buffer exceeding regulatory minimums as of June 30, 2026, with Tier 1 leverage and risk-based capital ratios above required thresholds.
• The company’s loan portfolio is diversified with a significant portion in commercial real estate, non-farm non-residential loans secured by real estate, and floating rate loans tied to prime, SOFR, or Treasury rates.
• The company has implemented enhanced risk management practices for commercial real estate concentration, including stress testing and loan-to-value limits.
• The company’s largest nonperforming loan relationships are concentrated in commercial real estate and healthcare-related properties.
• The company’s liquidity position includes cash and cash equivalents of approximately $781.6 million at June 30, 2026, and borrowing capacity with the Federal Home Loan Bank.
• The company has long-term borrowings of $135 million from the Federal Home Loan Bank and senior and subordinated debt with provisions allowing interest payments in cash or common stock.
• The company’s noninterest income primarily comes from customer service fees, ATM and debit card fees, loan fees, and gains on sales of loans and securities.
• Noninterest expense includes salaries, employee benefits, occupancy, equipment, and regulatory expenses.
• The company’s business model focuses on personalized commercial banking services in regional markets with emphasis on customer relationships and competitive pricing.