First Guaranty Swings to $12.0M Q3 Profit on Texas Sale; Leverage Ratio Still Below Consent Order
FGBI has more than doubled off its 52-week low of $4.31.
Summary
First Guaranty reported $12.0 million of Q3 2026 net income, driven largely by a $17.6 million pre-tax gain on the Texas branch sale, while its Tier 1 leverage ratio of 8.29% still trails the 9.0% required under its FDIC Consent Order.
Key Events · Earnings and Guidance · FGBI
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Q3 Profit of $12.0 Million
Net income came in at $12.0 million, or $0.69 per common share, against a $(45.0) million loss a year earlier; for the nine months, net income was $18.1 million versus $(58.5) million.
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Texas Sale Drives One-Time Gain
The July 31, 2026 sale of five Texas branches to Armstrong Bank carried a 7.65% deposit premium ($17.9 million) and an estimated $17.6 million pre-tax contribution, leaving the quarter's profit largely non-recurring.
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Leverage Ratio Still Below Consent Order
At September 30, the Bank's Tier 1 leverage ratio was 8.29% against the 9.0% requirement; management says it exceeded 9.0% on September-only average assets and expects to clear 9.0% by December 31, 2026. Total risk-based capital was 18.79% versus a 14.0% requirement.
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Margin Compression and Shrinking Balance Sheet
Net interest margin fell to 2.08% from 2.34% and net interest income to $17.7 million from $22.2 million, as total assets dropped to $3.2 billion from $4.1 billion and loans fell 23.6% to $1.6 billion.
Analysis · FGBI · Finance
First Guaranty earned $12.0 million in Q3 2026, reversing a $45.0 million loss a year ago, but roughly $17.6 million of the pre-tax gain came from selling its Texas operations to Armstrong Bank — a one-time boost rather than recurring earnings. Capital is the number that matters: the Bank's Tier 1 leverage ratio stood at 8.29% on September 30, still short of the 9.0% required under the FDIC/OFI Consent Order, and management is leaning on a smaller balance sheet (assets down to $3.2 billion from $4.1 billion) plus Q4 asset sales to close the gap. Core profitability is thinning, with net interest margin down to 2.08% from 2.34% and net interest income at $17.7 million versus $22.2 million, while non-performing assets ticked up to $71.9 million. Until the ratio clears 9.0%, the dividend block and the capital deadline remain the binding constraints.
How filings like this one have moved
In the 30 days to Oct 27, 2026, 36.2% of the 898 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.75%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, FGBI was trading at $8.89 on NASDAQ in the Finance sector, with a market capitalization of approximately $147M. The 52-week trading range was $4.31 to $11.02. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.