10-Q · May 13, 2026
First Guaranty Bancshares reported a strong recovery in Q1 2026, with net income at $2.7 million compared to a loss of $6.2 million in the prior year. Revenue surged to $22.9 million, significantly exceeding estimates,…
Earnings analysis · 10-Q
FGBI earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
First Guaranty returned to profitability in Q2 2026, with $3.4 million of net income and $0.17 EPS versus a $7.3 million loss and $(0.61) EPS in Q2 2025, primarily because the credit-loss provision declined to $2.6…
Read full summary
First Guaranty returned to profitability in Q2 2026, with $3.4 million of net income and $0.17 EPS versus a $7.3 million loss and $(0.61) EPS in Q2 2025, primarily because the credit-loss provision declined to $2.6 million from $16.6 million. Net interest income was stable and quarterly margin improved, while nonperforming assets and classified assets declined. However, the newly effective Consent Order is the dominant investment signal: the Bank’s 7.09% Tier 1 leverage ratio is below the required 9%, and restrictions on dividends, brokered deposits, lending, and classified-asset remediation create material capital, liquidity, and execution risks.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.17
What stood out
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Returned to profitability
Second-quarter net income was $3.4 million versus a $7.3 million net loss in Q2 2025, while EPS improved to $0.17 from $(0.61), a $0.78 increase. The improvement was primarily driven by the provision for credit losses falling to $2.6 million from $16.6 million.
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Quarterly margin modestly improved
Q2 net interest income was broadly stable at $22.3 million versus $22.2 million in the prior-year quarter. Net interest margin improved 3 basis points to 2.37% from 2.34%, as the average cost of interest-bearing liabilities declined 40 basis points to 3.60%.
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Nonperforming assets declined
Credit quality metrics improved from year-end: nonperforming assets declined 26.3% to $70.3 million from $95.5 million, nonaccrual loans fell to $40.6 million from $59.6 million, and special mention loans declined $142.9 million to $186.6 million.
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Shifted assets toward securities
The bank increased its securities portfolio by $214.7 million to $1.2 billion, including a 31.7% increase in available-for-sale securities to $890.8 million. This partially offset a $298.1 million, or 14.7%, decline in net loans to $1.7 billion.
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First-half earnings recovered
Six-month net income was $6.2 million versus a $13.5 million loss in the prior-year period, and six-month EPS was $0.31 versus $(1.15). The six-month provision for credit losses fell to $5.3 million from $31.2 million.
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Expense base contracted
Operating costs remained controlled: Q2 noninterest expense was $17.2 million versus $17.3 million a year earlier, while salaries and employee benefits declined to $7.0 million from $7.8 million. Full-time equivalent employees decreased to 333 from 360.
What to watch
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Tier 1 leverage below order requirement
The Consent Order requires the Bank to maintain a Tier 1 leverage ratio of at least 9% and total risk-based capital of at least 14%, while actual June 30 ratios were 7.09% and 16.21%, respectively. The 7.09% Tier 1 leverage ratio is below the required level and management has submitted a capital plan to regulators.
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Funding and dividend restrictions
The Consent Order restricts dividends to First Guaranty without prior written FDIC and OFI consent and may limit the acceptance, renewal, or rollover of brokered deposits. Brokered deposits totaled $1.1 billion at June 30, 2026, creating potential funding and holding-company liquidity pressure.
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Classified-asset remediation burden
The Bank must eliminate, by charge-off or collection, all assets classified loss and 50% of assets classified doubtful within 120 days of the August 7, 2026 effective date, and must submit a plan within 60 days to reduce remaining doubtful and substandard assets. At June 30, substandard loan relationships totaled $276.6 million and special mention relationships totaled $186.6 million.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management stated it believes liquidity is sufficient for current operating needs; as of June 30, 2026, cash and cash equivalents were $781.6 million and net FHLB borrowing capacity was $73.8 million.
Earlier filings 4
10-K · March 31, 2026
First Guaranty describes a deliberate de-risking strategy that began in July 2024 emphasizing reduced loan originations, selective loan sales and portfolio charge-offs while focusing on localized, relationship-driven…
10-Q · August 18, 2025
First Guaranty reported a Q2 net loss of $7.303 million (EPS $(0.61)) versus net income $7.201 million (EPS $0.53) in Q2 2024. Reported revenue (net interest income plus noninterest income) fell to $24.396 million from…
10-Q · August 9, 2024
First Guaranty reported a strong quarter with EPS of $0.53 (Q2 2024) versus $0.19 in Q2 2023 and consolidated revenue (net interest income plus noninterest income) of $36,768,000. Results were driven by a large increase…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.