First Guaranty Bank Hit with FDIC Consent Order — Capital Below Required Minimum, Dividends Blocked
FGBI has more than doubled off its 52-week low of $4.31 on light trading volume (0.3× avg).
Summary
First Guaranty Bank entered into an FDIC consent order requiring higher capital ratios, blocking dividends to the parent, and forcing asset charge-offs. The bank's Tier 1 leverage ratio of 7.09% is well below the new 9% minimum.
Key Events · Legal and Risk Events · FGBI
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FDIC Consent Order Imposed
Effective August 7, 2026, First Guaranty Bank consented to an FDIC/OFI order without admitting or denying unsafe practices, stemming from the September 2025 exam.
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Capital Ratios Below Required Minimums
The order mandates a Tier 1 leverage ratio of ≥9% and total risk-based capital ratio of ≥14%. As of June 30, 2026, the bank's Tier 1 leverage ratio was 7.09%, below the requirement, though total risk-based capital was 16.21%.
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Dividend Payments Blocked
The bank cannot pay any dividend to the parent company without prior written consent from the FDIC and OFI, threatening the holding company's ability to pay preferred and common dividends.
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Asset Charge-Offs Required
Within 120 days, the bank must charge off all assets classified 'loss' and 50% of those classified 'doubtful' from the 2025 exam, and submit a plan to reduce remaining classified assets.
Analysis · FGBI · Finance
Effective today, August 7, 2026, the FDIC and Louisiana OFI issued a consent order requiring First Guaranty Bank to maintain a Tier 1 leverage ratio of at least 9% and a total risk-based capital ratio of at least 14%. As of June 30, 2026, the bank's Tier 1 leverage ratio stood at only 7.09% — well below the new minimum. The order also blocks the bank from paying dividends to the parent company without prior regulatory approval, mandates charge-offs of classified assets, and imposes strict credit administration and CRE concentration requirements. While management says it is otherwise in compliance and has submitted a capital plan, the capital shortfall and dividend freeze directly threaten the holding company's ability to service its preferred and common dividends and signal deeper asset-quality problems from the 2025 exam.
At the time of this filing, FGBI was trading at $9.60 on NASDAQ in the Finance sector, with a market capitalization of approximately $158.8M. The 52-week trading range was $4.31 to $11.02. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.