First Guaranty Bancshares Reports Third Quarter 2026 Results and Provides Strategic Update
The Texas operations sale contributed an estimated $17.6 million pre-tax gain, while the Bank reduced wholesale funding.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
First Guaranty Bancshares (NASDAQ: FGBI) reported third-quarter 2026 net income of $12.0 million, including a gain from selling its Texas operations. Income available to common shareholders was $11.4 million, or $0.69 per common share. The July 31 sale to Armstrong Bank contributed an estimated $17.6 million pre-tax gain.
The Bank prepaid $135.0 million in FHLB advances and redeemed $130.6 million of brokered deposits. Its Tier 1 leverage ratio rose to 8.29% from 7.10% at June 30; total risk-based capital increased to 18.79%. Substandard assets fell $31.2 million during the quarter. An $11.4 million non-performing asset is under a letter of intent, and the largest other real estate owned property is under a sale agreement; both closings are expected in fourth-quarter 2026. Total assets fell to $3.2 billion from $4.1 billion at December 31, 2025.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major pointTexas operations sale to Armstrong Bank closed July 31, 2026, contributing an estimated $17.6 million pre-tax gain.
- Moderate pointThird-quarter 2026 net income was $12.0 million; common shareholders' income was $11.4 million, or $0.69 per share.
- Moderate pointBank's Tier 1 leverage ratio rose to 8.29% at September 30, 2026, from 7.10% at June 30, 2026.
- Moderate pointFHLB advances prepaid totaled $135.0 million, reducing wholesale funding. 94% of market cap
- Moderate pointBrokered deposit redemptions totaled $130.6 million, reducing wholesale funding. 91% of market cap
- Moderate pointSubstandard assets declined $31.2 million during the quarter.
- Moderate pointSpecial mention loans declined $191.4 million since December 31, 2025.
- Moderate pointCommercial real estate concentration improved to approximately 199% of Tier 1 capital plus allowance for credit losses.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Second-largest non-performing asset sale targets $11.4 million, with closing expected during fourth-quarter 2026.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Largest other real estate owned property sale agreement covers approximately 80% of total balances; closing expected fourth-quarter 2026.
2 minor points
- Minor pointBank's total risk-based capital ratio increased to 18.79% at September 30, 2026.
- Minor pointSubstandard loans declined $102.2 million since December 31, 2025.
Negative
- Moderate pointSecond-largest non-performing asset sale remains at the letter-of-intent stage.
- Moderate pointTotal assets fell to $3.2 billion at September 30, 2026, from $4.1 billion at December 31, 2025.
- Moderate pointDeposits declined $291.4 million through reciprocal deposit program activity.
- Minor point. Forward-looking: it has not happened yet and may not happen.Largest other real estate owned property sale has not closed; closing is expected during fourth-quarter 2026.
News Explained
During the third quarter, the Bank reduced its deposit funding by
Key Figures
- Net income
- $12.0 million
- Third quarter 2026
- Earnings per common share
- $0.69
- Third quarter 2026
- Estimated pre-tax gain
- $17.6 million
- Sale of the Bank's Texas operations
- FHLB advances prepaid
- $135.0 million
- Balance sheet reduction during the quarter
- Tier 1 leverage ratio
- 8.29%, from 7.10%
- September 30, 2026, compared with June 30, 2026
- Total risk-based capital ratio
- 18.79%
- At September 30, 2026
- Substandard assets reduction
- $31.2 million
- During the quarter
- Deposits reduced
- $291.4 million
- Through reciprocal deposit program activity
Previous Earnings Reports
-
Reported Q2 2026 net income of $3.4 million and EPS of $0.17.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
fhlb advances financial
tier 1 leverage ratio regulatory
brokered deposits financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
HAMMOND, La., Oct. 27, 2026 (GLOBE NEWSWIRE) -- First Guaranty Bancshares, Inc. ("First Guaranty") (NASDAQ: FGBI), the holding company for First Guaranty Bank, reported net income of
"Our third-quarter results demonstrate meaningful progress in executing our strategic priorities," said Michael R. Mineer, President and Chief Executive Officer. "The sale of our Texas operations, reduction of wholesale funding, improvement in capital ratios, and continued reduction in classified assets have positioned the Bank for a stronger future."
THIRD QUARTER 2026 HIGHLIGHTS
- Net income of
$12.0 million ; Net income available to common shareholders of$11.4 million . - Completed the sale of the Bank's Texas operations on July 31, 2026.
- Reduced balance sheet size through:
- Prepayment of
$135.0 million in FHLB advances; - Reduction of deposits by
$291.4 million through reciprocal deposit program activity; and - Redemption of
$130.6 million of brokered deposits.
- Prepayment of
- Improved the Bank's Tier 1 leverage ratio to
8.29% at September 30, 2026, from7.10% at June 30, 2026, while the total risk-based capital ratio increased to18.79% . - Reduced substandard assets by
$31.2 million during the quarter. Since December 31, 2025, special mention loans have declined$191.4 million and substandard loans have declined$102.2 million . - Signed a letter of intent to sell the Bank's second largest non-performing asset, totaling
$11.4 million , with closing expected during the fourth quarter of 2026. - Signed an agreement to sell the Bank's largest OREO property, representing approximately
80% of total OREO balances, with closing expected during the fourth quarter of 2026.
During the quarter, the Bank continued implementing corrective actions related to credit administration and risk management and remains focused on reducing non-performing and adversely classified assets. Management also continues to reposition the balance sheet by reducing wholesale funding and aligning assets with its core deposit base to improve capital levels and future net interest margin performance.
Total assets were
"We remain committed to strengthening the Company, improving asset quality, and serving our customers and communities while building long-term value for shareholders," Mineer said.
For full release click here.
About First Guaranty Bancshares, Inc.: First Guaranty Bancshares, Inc. is the holding company for First Guaranty Bank, a Louisiana state-chartered bank. Founded in 1934, First Guaranty Bank offers a wide range of financial services and focuses on building client relationships and providing exceptional customer service. First Guaranty Bank currently operates twenty-five locations throughout Louisiana, Kentucky and West Virginia. First Guaranty’s common stock trades on the NASDAQ under the symbol FGBI. For more information, visit www.fgb.net.
Forward Looking Statements: This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact which represent our current judgement about possible future events. We believe these judgements are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of factors, many of which are described in our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or otherwise revise any forward-looking statements.
CONTACT: ERIC DOSCH, CFO
985.375.0308
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What asset sales does FGBI expect to close in fourth-quarter 2026?
First Guaranty expects fourth-quarter 2026 closings for its $11.4 million second-largest non-performing asset and its largest other real estate owned property. The former is covered by a letter of intent; the latter is covered by a sale agreement and represents approximately 80% of total other real estate owned balances.
What credit and balance sheet actions is First Guaranty pursuing?
The Bank continues corrective actions related to credit administration and risk management, alongside efforts to reduce non-performing and adversely classified assets. Management also continues reducing wholesale funding and aligning assets with its core deposit base, aiming to improve capital levels and future net interest margin performance.