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Get filing alertsFirst Guaranty returns to profitability with $3.4M Q2 net income, exits Texas market
Filed July 27, 2026 · Period ending July 27, 2026 · ~1 min read
Key Changes
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high
Net income of $3.4M in Q2 2026 vs. $7.3M loss in Q2 2025; H1 2026 net income $6.2M vs. $13.5M loss prior year, driven by sharply lower credit provisions ($2.6M vs. $16.6M in Q2).
Exhibit 99.1 view on EDGAR → -
high
Selling five Texas branches to Armstrong Bank for ~$227M deposits and $93M loans, expected to close July 31, 2026, representing strategic exit from Texas market.
Exhibit 99.1 view on EDGAR → -
high
Nonaccrual loans fell $19.0M to $40.6M at June 30, 2026 from $59.6M at year-end 2025; paid off $14.0M non-accrual relationship in Q2.
Exhibit 99.2 view on EDGAR → -
medium
Bank Total Capital ratio improved to over 16% at June 30, 2026 from 11.28% a year earlier; balance sheet contracted with loans down 14.7% to $1.8B and deposits down 4.8% to $3.5B.
Exhibit 99.2 view on EDGAR → -
medium
Single independent living center property represents 80% of OREO at $23.3M book value with $1.2M annual carrying costs; CRE concentration at 254.4% of bank capital.
Exhibit 99.2 view on EDGAR →
Summary
First Guaranty Bancshares returned to profitability in the second quarter of 2026 with net income of $3.4 million, reversing a $7.3 million loss in the prior-year quarter. The turnaround was driven primarily by a sharp reduction in credit loss provisions, which fell from $16.6 million in Q2 2025 to $2.6 million in Q2 2026.
For the first half of 2026, the company earned $6.2 million compared to a $13.5 million loss in the prior-year period. Asset quality improved as nonaccrual loans declined $19.0 million to $40.6 million, aided by the payoff of a $14.0 million non-accrual relationship during the quarter.
The company is executing a strategic repositioning, including the sale of its five Texas branches to Armstrong Bank for approximately $227 million in deposits and $93 million in loans, expected to close July 31, 2026. The balance sheet contracted in the first half with loans down 14.7% to $1.8 billion and deposits down 4.8% to $3.5 billion, reflecting both the pending branch sale and portfolio management. The bank's Total Capital ratio strengthened to over 16% from 11.28% a year earlier, though management continues working toward a 9.0% Tier 1 leverage ratio target from the current 7.09%. A single independent living center property represents 80% of OREO at a $23.3 million book value with $1.2 million in annual carrying costs.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
First Guaranty Bancshares reported financial results for the six months ended June 30, 2026 via press release.
Added in current filing · verify on EDGAR →
On July 27, 2026, First Guaranty Bancshares, Inc. issued a press release reporting its financial results at and for the six months ended June 30, 2026.
The company disclosed its financial results for the first half of 2026 through a press release. The 8-K filing itself does not contain the actual financial figures — those are in the attached Exhibit 99.1 press release, which was not provided in the input text.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Net income (loss) for the three months ended June 30, 2026 and 2025 was $3.4 million and $(7.3) million, respectively. Net income (loss) for the six months ended June 30, 2026 and 2025 was $6.2 million and $(13.5) million, respectively, an increase of $19.6 million.
First Guaranty returned to profitability in Q2 2026 with net income of $3.4 million, reversing a $7.3 million loss in Q2 2025. For the first half of 2026, net income was $6.2 million compared to a $13.5 million loss in the prior-year period, an improvement of $19.6 million. The turnaround was driven primarily by a sharp reduction in credit loss provisions.
Added in current filing · view on EDGAR →
The provision for credit losses for the three months ended June 30, 2026 was $2.6 million compared to $16.6 million for the three months ended June 30, 2025. The provision for credit losses for the six months ended June 30, 2026 was $5.3 million compared to $31.2 million for the six months ended June 30, 2025.
The provision for credit losses fell sharply to $2.6 million in Q2 2026 from $16.6 million in Q2 2025, and to $5.3 million for the first half of 2026 from $31.2 million in the prior-year period.
Added in current filing · view on EDGAR →
Nonaccrual loans decreased $19.0 million to $40.6 million at June 30, 2026 compared to $59.6 million at December 31, 2025.
Nonaccrual loans declined by $19.0 million to $40.6 million at June 30, 2026 from $59.6 million at year-end 2025, indicating improving asset quality. The allowance for credit losses stood at 1.94% of total loans, down slightly from 1.97% at December 31, 2025.
Added in current filing · view on EDGAR →
Total assets decreased $183.3 million and were $3.9 billion at June 30, 2026 compared to $4.1 billion at December 31, 2025. Total loans at June 30, 2026 were $1.8 billion, a decrease of $304.6 million, or 14.7%, compared with December 31, 2025. Total deposits were $3.5 billion at June 30, 2026, a decrease of $175.8 million, or 4.8%, compared with December 31, 2025.
First Guaranty's balance sheet contracted in the first half of 2026, with total assets declining $183.3 million to $3.9 billion, loans falling $304.6 million (14.7%) to $1.8 billion, and deposits decreasing $175.8 million (4.8%) to $3.5 billion. The loan runoff reflects both strategic portfolio management and the pending Texas branch sale.
Event · Exhibit 99.2
CEO letter outlines strategy to reduce non-performing assets, improve capital ratios, and deploy AI across operations.
Added in current filing · view on EDGAR →
Since the top 10 loans in each category drive the overall portfolio balances, a change in just a few loans significantly improves our loan portfolio. This occurred in the second quarter as a $14.0 million non-accrual relationship paid off.
The company paid off a $14.0 million non-accrual relationship in Q2 2026, materially improving its non-performing loan portfolio. Management is focused on reducing adversely classified assets to less than 30% of total regulatory capital and has established plans for each adversely classified asset over $2.0 million.
Added in current filing · view on EDGAR →
By improving our bank Total Capital ratio to over 16% at June 30, 2026, we have come a long way in managing credit risk since the ratio was 11.28% at June 30, 2024.
The bank's Total Capital ratio improved from 11.28% at June 30, 2024 to over 16% at June 30, 2026. Management has set internal guidance for a risk weighted capital ratio of 14% or higher and a Tier 1 leverage ratio target of 9.0% or greater (currently 7.09%).
Added in current filing · view on EDGAR →
We are now well below the regulatory guidance for commercial real estate at approximately 254.4% of total bank capital at June 30, 2026.
The company's commercial real estate concentration stands at approximately 254.4% of total bank capital at June 30, 2026, which management states is well below regulatory guidance thresholds.
Added in current filing · view on EDGAR →
Our Board of Directors has approved a strategy to expand the use of artificial intelligence across our operations, governed by a formal risk management framework consistent with our regulatory obligations. An internal leadership team is focused on implementing practical AI solutions that lower operating costs and improve products and services for our customers. As part of this strategy, we are deploying AI capabilities within a private, secure cloud environment that keeps our data under our control and enhances client service.
The Board has approved a formal AI deployment strategy with risk management oversight to lower operating costs and improve customer service. The company is implementing AI within a private, secure cloud environment.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 28, 2026 · How we verify