First Guaranty Q2 2026: $3.4M Profit, FDIC Consent Order Details, Texas Sale Completed
FGBI sits 92% above its 52-week low of $4.31.
Summary
First Guaranty Bancshares filed its Q2 2026 10-Q, confirming a $3.4 million profit and disclosing the full terms of its FDIC Consent Order, including higher capital requirements and a dividend block, along with the completed sale of its Texas operations.
Key Events · Earnings and Guidance · FGBI
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Q2 Net Income of $3.4M
Net income of $3.4 million for Q2 2026, a $10.7 million improvement from a $7.3 million loss in Q2 2025, driven by a $14.0 million decrease in the provision for credit losses.
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FDIC Consent Order Capital Requirements
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%. As of June 30, 2026, the bank's Tier 1 leverage ratio was 7.09%, below the required threshold.
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Dividend Restrictions
The bank cannot pay dividends to the parent company without prior written consent from the FDIC and OFI, which could affect the holding company's ability to pay dividends on its preferred and common stock.
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Texas Operations Sale Completed
On July 31, 2026, the bank completed the sale of its Texas operations, consisting of five branches and approximately $234 million in deposits and $88 million in loans, to Armstrong Bank.
Analysis · FGBI · Finance
First Guaranty Bancshares reported Q2 2026 net income of $3.4 million, a $10.7 million swing from last year's loss, driven by a sharp drop in credit loss provisions. The 10-Q also reveals the FDIC 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%, and blocks dividends to the parent without regulatory approval. The bank completed the sale of its Texas operations on July 31, 2026, removing approximately $234 million in deposits and $88 million in loans from its balance sheet. These details matter because the consent order restricts capital distributions and the Texas sale shrinks the balance sheet, both of which affect the bank's ability to support the holding company's preferred and common dividends.
At the time of this filing, FGBI was trading at $8.27 on NASDAQ in the Finance sector, with a market capitalization of approximately $136.8M. The 52-week trading range was $4.31 to $11.02. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.