First Guaranty Bancshares Reports $2.7 Million Net Income in Q1 2026

First Guaranty Bancshares, Inc. reported a net income of $2.7 million for the first quarter of 2026, a significant recovery from a net loss of $6.2 million in the same period last year. This turnaround is attributed primarily to a substantial reduction in the provision for credit losses, which fell to $2.6 million from $14.5 million year-over-year. Earnings per common share improved to $0.14, compared to a loss of $0.54 in the prior year. The company’s total assets decreased to $4.0 billion, down $119.8 million from the end of 2025, driven by a $145.2 million decline in net loans, which totaled $1.9 billion as of March 31, 2026.

In terms of operational metrics, First Guaranty experienced a decrease in total deposits, which fell by $125.3 million, or 3.4%, to $3.5 billion. The decline in deposits was primarily due to reductions in interest-bearing demand deposits and time deposits. The bank's allowance for credit losses represented 2.00% of total loans, slightly up from 1.97% at the end of 2025. Nonaccrual loans also decreased to $54.4 million from $59.6 million, indicating improved asset quality. The bank's nonperforming assets as a percentage of total assets decreased to 2.11% from 2.34%.

Strategically, First Guaranty has made significant changes to its business model, focusing on reducing risk in its loan portfolio. This includes a reduction in loan originations and the sale of certain loans, which has contributed to the overall decrease in loan balances. The bank has also entered into a purchase and assumption agreement to exit the Dallas-Fort Worth-Arlington and Waco, Texas markets, which is expected to streamline operations and enhance focus on core markets in Louisiana and Texas.

Looking ahead, First Guaranty plans to continue its strategy of managing interest rate risk and improving its asset-liability mix. The bank's investment securities portfolio increased to $1.2 billion, reflecting a $177.6 million rise from the previous quarter, primarily due to purchases of collateralized mortgage obligations and mortgage-backed securities. The management remains cautious about market conditions and is committed to maintaining adequate liquidity and capital levels, with total shareholders' equity at $224.0 million as of March 31, 2026. The bank's capital ratios indicate a well-capitalized status, exceeding regulatory requirements, which positions it favorably for future growth opportunities.