FGBI earnings analysis
What we found in FGBI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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%.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.17
What they said about what is next.
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.
The filing reads worse than the one before it.
What came before.
- 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,…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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