First Guaranty Bancshares, Inc.
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 14, 2026
FGBI$11.74-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-13.
0001408534-26-000047
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001408534-26-000072
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 170 previous paragraphs and 205 current paragraphs.
73 unchanged; 83 reworded; 38 added; 13 removed; 1 previous and 11 current paragraphs rearranged.
Tables are not compared: 12 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (38)
Current report
•A $10.8 million loan relationship secured by an assisted living center located in Texas; the loan was placed on nonaccrual in the third quarter of 2025.
Current report
•A $7.7 million loan relationship secured by commercial land development located in Texas; the loan was placed on nonaccrual in the second quarter of 2026.
Current report
•A $1.5 million loan secured by a hotel in Louisiana; the loan was placed on nonaccrual during the second quarter of 2026. This loan relationship had a specific reserve of $0.6 million as of June 30, 2026.
Current report
•A $0.8 million loan secured by a retail strip center located in Louisiana; the loan was placed on nonaccrual during the fourth quarter of 2025.
Current report
•First Guaranty charged off $5.7 million on a commercial lease relationship during the second quarter of 2026. This relationship had no remaining principal balance as of June 30, 2026. This lease was part of a relationship with an outstanding balance of $49.1 million prior to fourth quarter of 2025 charge-offs, which reduced the balance to $5.7 million.
Current report
•Substandard loan relationships totaled $276.6 million as of June 30, 2026, a decline of $70.9 million compared to December 31, 2025.
Current report
•There were no doubtful loan relationships as of June 30, 2026, a decline of $9.4 million compared to December 31, 2025.
Current report
•As disclosed in the Current Report on Form 8-K filed with the SEC on August 7, 2026, the Bank has consented to the issuance of a Consent Order (the “Consent Order”) with the FDIC and the Louisiana Office of Financial Institutions (the “OFI”), which became effective as of August 7, 2026 (the “Effective Date”). The Bank consented to the issuance of the Consent Order without admitting or denying any charges of unsafe or unsound banking practices or violations of law. The Consent Order primarily resulted from the September 2, 2025, joint examination of the Bank conducted by the FDIC and OFI (the “2025 Exam”). In the period between that 2025 Exam and the issuance of the Consent Order, the Bank’s board of directors (the “Bank Board”) and management have taken a number of steps to address the issues identified in the Consent Order. A copy of the Consent Order is attached as an exhibit to this report, and the description of the contents of the Consent Order in this report is qualified in its entirety by reference to the full text of the Consent Order, which is incorporated herein by reference.
Current report
The Consent Order requires the Bank to undertake a number of actions and comply with certain restrictions relating primarily to board oversight, capital maintenance, classified assets, credit administration, commercial real estate (CRE) concentrations and monitoring, and dividends. These provisions are summarized in more detail below:
Current report
•The Bank Board must monitor and confirm the completion of actions taken by management to comply with the Consent Order and ensure that the Bank has sufficient policies, personnel, resources, and systems to implement and adhere to the Consent Order.
Current report
•The Bank must maintain a Tier 1 leverage capital ratio equal to or greater than 9% and a total risk-based capital ratio equal to or greater than 14%. If the Bank fails to maintain the required capital ratios, the Bank must submit a plan to the FDIC and OFI to increase Tier 1 Capital or take other measures to bring the Bank’s capital ratios to the levels required by the Consent Order.
Current report
•The Bank is restricted from extending additional credit to borrowers whose credit remains uncollected and was charged off or classified “loss” by the FDIC or OFI in the 2025 Exam, subject to certain limited exceptions.
Current report
•The Bank is restricted from extending additional credit to borrowers whose credit remains uncollected and was classified “doubtful” or “substandard” by the FDIC or OFI in the 2025 Exam, unless the Bank Board has signed a detailed written statement giving reasons why failure to extend such credit would be detrimental to the best interests of the Bank.
Current report
•Within 120 days after the Effective Date, the Bank must, to the extent it has not previously done so, eliminate from its books, by charge-off or collection (excluding through the proceeds of any loan from the Bank), all assets or portions of assets classified “loss” and 50% of the assets classified “doubtful” by the FDIC or OFI in the 2025 Exam.
Current report
•Within 60 days after the Effective Date, the Bank must submit a written plan to the FDIC and OFI to reduce the remaining assets classified “doubtful” and “substandard” in the 2025 Exam, including specified information for each classified asset with a balance of $2 million or more.
Current report
•The Bank must maintain satisfactory loan documentation practices and identify, track, correct and report to the Bank Board loan policy exceptions.
Current report
•The Bank Board must maintain a satisfactory loan review program commensurate with the Bank’s credit risk profile and commercial real estate concentration.
Current report
•Within 90 days after the Effective Date, the Bank Board must maintain and submit for approval a written plan for identifying, measuring, and monitoring the Bank’s CRE concentration.
Current report
•Within 90 days after the Effective Date, the Bank Board must implement measures to correct the weaknesses regarding CRE stress testing identified in the 2025 Exam.
Current report
•Within 90 days after the Effective Date, the Bank Board must implement measures to correct certain loan underwriting and credit administration weaknesses described in the 2025 Exam.
Current report
•So long as the Consent Order is in effect, the Bank may not pay any dividend to First Guaranty without the prior written consent of the FDIC and OFI.
Current report
•The Bank must furnish quarterly progress reports to the FDIC and OFI regarding compliance with the Consent Order.
Current report
The Consent Order will remain in effect until modified, terminated, suspended, or set aside by the FDIC and OFI.
Current report
Management and the Bank Board have been working to address the issues identified in the 2025 Exam, and will continue and expand these efforts to comply with the Consent Order. As of June 30, 2026, the Bank’s Tier 1 leverage ratio was 7.09% and its total risk-based capital ratio was 16.21%. The Bank has submitted a capital plan to the FDIC and OFI. Other than the achievement of the required Tier 1 leverage ratio, the Bank currently believes that it is in full compliance with the Consent Order as of the date hereof.
Current report
*Subsequently paid off in the third quarter of 2026.
Current report
*Subsequently paid off in the third quarter of 2026.
Current report
**Loan is on nonaccrual status
Current report
•Commercial leases decreased $19.0 million during the first six months of 2026. The allowance increase was due to changes in the qualitative analysis of the portfolio.
Current report
Brokered deposits totaled $1.1 billion as of June 30, 2026. Brokered deposits with a maturity of one year or less totaled $284.6 million as of June 30, 2026. Brokered deposits with an early redemption call option within one year totaled $207.4 million.
Current report
Six months ended June 30, 2026 compared to the six months ended June 30, 2025. Net income for the six months ended June 30, 2026 was $6.2 million, an increase of $19.6 million, from net loss of $13.5 million for the six months ended June 30, 2025. The increase in net income for the six months ended June 30, 2026 as compared to the prior year period was primarily the result of a decrease in the provision to the credit allowance. Income per common share for the six months ended June 30, 2026 was $0.31 per common share, an increase of $1.46 per common share from $(1.15) per common share for the six months ended June 30, 2025.
Current report
Six months ended June 30, 2026 compared to the six months ended June 30, 2025. Net interest income for the six months ended June 30, 2026 and 2025 was $43.0 million and $44.5 million, respectively. The decrease in net interest income for the six months ended June 30, 2026 as compared to the prior year period was primarily due to an increase in the average balance of our total interest-bearing liabilities and a decrease in the average yield of our total interest-earning assets, partially offset by a decrease in the average rate of our interest-bearing liabilities and an increase in the average balance of our total interest-earning assets. For the six months ended June 30, 2026, the average balance of our total interest-bearing liabilities increased by $131.8 million to $3.4 billion primarily due to growth in interest-bearing time deposits. The average yield of our interest-earning assets decreased by 40 basis points to 5.34% for the six months ended June 30, 2026 from 5.74% for the six months ended June 30, 2025 primarily due to a lower yield on interest-earning deposits with banks. The average rate of our total interest-bearing liabilities decreased by 38 basis points to 3.63% for the six months ended June 30, 2026 from 4.01% for the six months ended June 30, 2025. The primary source of the decrease in liabilities cost was associated with the repricing of interest bearing demand deposits for public funds that are primarily indexed to Treasury rates. For the six months ended June 30, 2026, the average balance of our total interest-earning assets increased by $90.5 million to $3.9 billion due to growth in the securities portfolio and an increase in interest-earning deposits with banks. As a result, our net interest rate spread decreased 2 basis points to 1.71% for the six months ended June 30, 2026 from 1.73% for the six months ended June 30, 2025. Our net interest margin decreased 13 basis points to 2.22% for the six months ended June 30, 2026 from 2.35% for the six months ended June 30, 2025.
Current report
Interest income on interest-earning deposits with banks decreased $1.4 million to $6.1 million for the three months ended June 30, 2026 as compared to the prior year period as a result of a decrease in the average balance and average yield of interest-bearing deposits with banks. The average balance of interest-bearing deposits with banks decreased $19.4 million to $657.1 million for the three months ended June 30, 2026 from $676.5 million for the three months ended June 30, 2025. The yield on interest-earning deposits decreased 74 basis points to 3.71% for the three months ended June 30, 2026 from 4.45% for the three months ended June 30, 2025.
Current report
Six months ended June 30, 2026 compared to the six months ended June 30, 2025. Interest income decreased $5.2 million, or 4.81%, to $103.6 million for the six months ended June 30, 2026 as compared to the prior year period. The decrease in interest income was attributable to a decrease in the average yield of interest-earning assets, partially offset by an increase in the average balance of interest-bearing assets. The average yield of interest-earning assets decreased by 40 basis points to 5.34% for the six months ended June 30, 2026 compared to 5.74% for the six months ended June 30, 2025. The average balance of our interest-earning assets increased $90.5 million to $3.9 billion for the six months ended June 30, 2026 as compared to the same period in the prior year.
Current report
Interest income on interest-earning deposits with banks increased $1.2 million to $14.7 million for the six months ended June 30, 2026 as compared to the prior year period as a result of an increase in the average balance of interest-bearing deposits with banks, partially offset by a decrease in the average yield of interest-bearing deposits with banks. The average balance of interest-bearing deposits with banks increased 188,249 to $800.6 million for the six months ended June 30, 2026 from $612.3 million for the six months ended June 30, 2025. The yield on interest-earning deposits decreased 74 basis points to 3.71% for the six months ended June 30, 2026 from 4.45% for the six months ended June 30, 2025.
Current report
(5)Annualized.
Current report
(6)Includes loan fees of $2.8 million for the six months ended June 30, 2026 and 2025.
Current report
As noted below in Part II, Item 1A Risk Factors, the issuance of the Consent Order could adversely affect the willingness of the Bank’s sources of liquidity, including depositors, the Federal Home Loan Bank, deposit placement networks, brokered deposit sources and other counterparties to provide or maintain liquidity or funding to the Bank.
Current report
At June 30, 2026, First Guaranty and the Bank each satisfied the minimum numerical capital ratio thresholds to be considered well capitalized under applicable federal regulatory requirements. However, because the Consent Order requires the Bank to meet and maintain specific capital levels, the Bank may not be considered well capitalized for purposes of the prompt corrective action framework while the Consent Order remains in effect, even if its capital ratios otherwise exceed the applicable numerical thresholds. As a bank holding company, First Guaranty’s financial condition and liquidity may be adversely affected by any limitations on the Bank’s regulatory capital status, operations, dividends or funding sources. Although the Consent Order does not directly impose capital requirements on First Guaranty, the Bank’s regulatory standing may adversely affect First Guaranty’s liquidity, regulatory standing and its ability in engage in certain activities.
Removed paragraphs (13)
Previous report
A $14.5 million loan relationship secured by an assisted living center located in Louisiana; the loan was placed on nonaccrual in the second quarter of 2025. Payments received on the loan in the first quarter of 2026 reduced the balance by $0.4 million.
Previous report
A $9.1 million loan relationship secured by an assisted living center located in Texas; the loan was placed on nonaccrual in the third quarter of 2025. This loan relationship is still under construction with $1.9 million remaining to be funded as of March 31, 2026.
Previous report
A $5.7 million commercial lease loan for an automotive parts wholesaler; the loan was placed on nonaccrual and charged down $26.2 million in the fourth quarter of 2025. This lease loan was fully reserved and was classified as doubtful as of March 31, 2026.
Previous report
A $1.0 million loan secured by a cattle farm located in Louisiana; the loan was placed on nonaccrual during the third quarter of 2025.
Previous report
•Substandard loan relationships totaled $300.9 million as of March 31, 2026, a decline of $46.7 million compared to December 31, 2025.
Previous report
•Doubtful loan relationships totaled $5.7 million as of March 31, 2026, a decline of $3.7 million compared to December 31, 2025.
Previous report
•On March 20, 2026, First Guaranty entered into a second amendment to its promissory note with Smith & Tate Investment, L.L.C. ("Smith and Tate"), which further amends the promissory note originally dated October 5, 2023, as previously amended on June 4, 2025. The second amendment extends the existing waiver of quarterly principal payments from March 31, 2026 through March 31, 2028 and extends First Guaranty’s option during this period to satisfy interest payments either in cash or through the issuance of shares of First Guaranty’s common stock, based on the closing bid price immediately preceding the interest payment date. Smith & Tate is controlled by Edgar Ray Smith, III, a director and principal shareholder of First Guaranty.
Previous report
•On March 20, 2026, First Guaranty entered into a second amendment to its Floating Rate Subordinated Note due March 28, 2034 with Smith & Tate, which further amended the subordinated note previously amended on June 4, 2025. The second amendment extends First Guaranty’s ability to elect to satisfy quarterly interest payments either in cash or through the issuance of shares of First Guaranty’s common stock, based on the closing bid price immediately preceding the interest payment date. Smith & Tate is controlled by Edgar Ray Smith, III, a director and principal shareholder of First Guaranty.
Previous report
•On April 29, 2026, First Guaranty Bank purchased three properties owned by FGB Partners, LLC, two stand-alone branches and a portion of the headquarters building which also contains a branch, for an aggregate cash purchase price of $14.7 million. The properties were initially sold to FGB Partners, LLC on June 28, 2024, as part of a sale-leaseback transaction. Lease expense related to the sale‑leaseback arrangement totaled approximately $0.3 million per quarter. As a result of the repurchase, this lease expense will be eliminated, partially offset by an increase in depreciation expense of approximately $0.2 million per quarter.
Previous report
•On April 30, 2026, First Guaranty completed a private placement of 436,204 shares of its common stock to certain directors of First Guaranty and First Guaranty Bank at a purchase price of $9.17 per share. The private placement generated aggregate gross proceeds of approximately $4.0 million, which First Guaranty intends to use for general corporate purposes.
Previous report
•Multifamily loans decreased $16.3 million during the first three months of 2026. The allowance decrease related to this portfolio was due primarily to charge-offs and changes in the qualitative analysis of the portfolio.
Previous report
Interest income on interest-earning deposits with banks increased $2.6 million to $8.6 million for the three months ended March 31, 2026 as compared to the prior year period as a result of an increase in the average balance of interest-bearing deposits with banks. The average balance of interest-bearing deposits with banks increased $398.2 million to $945.7 million for the three months ended March 31, 2026 from $547.5 million for the three months ended March 31, 2025. This was partially offset by a decrease in the yield on interest-earning deposits of 74 basis points.
Previous report
At March 31, 2026, we satisfied the minimum regulatory capital requirements and were well capitalized within the meaning of federal regulatory requirements.
Reworded paragraphs (83)
Previous wording
The following discussion of First Guaranty's financial condition and results of operations is intended to highlight the significant factors affecting First Guaranty's financial condition and results of operations presented in the consolidated financial statements included in this Form 10-Q. This discussion is designed to provide readers with a more comprehensive view of the operating results and financial position than would be obtained from reading the consolidated financial statements alone. Reference should be made to those statements for an understanding of the following review and analysis. The financial data at March 31, 2026 and for the three months ended March 31, 2026 and 2025 have been derived from unaudited consolidated financial statements and include, in the opinion of management, all adjustments (consisting of normal recurring accruals and provisions) necessary to present fairly First Guaranty's financial position and results of operations for such periods.
Current wording
The following discussion of First Guaranty's financial condition and results of operations is intended to highlight the significant factors affecting First Guaranty's financial condition and results of operations presented in the consolidated financial statements included in this Form 10-Q. This discussion is designed to provide readers with a more comprehensive view of the operating results and financial position than would be obtained from reading the consolidated financial statements alone. Reference should be made to those statements for an understanding of the following review and analysis. The financial data at June 30, 2026 and for the three and six months ended June 30, 2026 and 2025 have been derived from unaudited consolidated financial statements and include, in the opinion of management, all adjustments (consisting of normal recurring accruals and provisions) necessary to present fairly First Guaranty's financial position and results of operations for such periods.
Previous wording
Congress passed the Private Securities Litigation Act of 1995 in an effort to encourage corporations to provide information about a company's anticipated future financial performance. This act provides a safe harbor for such disclosure, which protects us from unwarranted litigation, if actual results are different from management expectations. This discussion and analysis contains forward-looking statements and reflects management's current views and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "may," "should," "expect," "anticipate," "intend," "plan," "continue," "believe," "seek," "estimate" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of factors and uncertainties, including, changes in general economic conditions, either nationally or in our market areas, that are worse than expected; competition among depository and other financial institutions; inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; adverse changes in the securities markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to successfully integrate acquired entities; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board; changes in our organization, compensation and benefit plans; changes in our financial condition or results of operations that reduce capital available to pay dividends; increases in our provision for credit losses and changes in the financial condition or future prospects of issuers of securities that we own, which could cause our actual results and experience to differ from the anticipated results and expectations, expressed in such forward-looking statements. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Current wording
Congress passed the Private Securities Litigation Act of 1995 in an effort to encourage corporations to provide information about a company's anticipated future financial performance. This act provides a safe harbor for such disclosure, which protects us from unwarranted litigation, if actual results are different from management expectations. This discussion and analysis contains forward-looking statements and reflects management's current views and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "may," "should," "expect," "anticipate," "intend," "plan," "continue," "believe," "seek," "estimate" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of factors and uncertainties, including, our ability to comply with the requirements imposed by the regulatory consent order; changes in general economic conditions, either nationally or in our market areas, that are worse than expected; competition among depository and other financial institutions; inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; adverse changes in the securities markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to successfully integrate acquired entities; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board; changes in our organization, compensation and benefit plans; changes in our financial condition or results of operations that reduce capital available to pay dividends; increases in our provision for credit losses and changes in the financial condition or future prospects of issuers of securities that we own, which could cause our actual results and experience to differ from the anticipated results and expectations, expressed in such forward-looking statements. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Previous wording
First Quarter and Three Months Ended March 31, 2026, Financial Overview
Current wording
Second Quarter and Six Months Ended June 30, 2026, Financial Overview
Previous wording
First Guaranty Bancshares is a Louisiana corporation and a financial holding company headquartered in Hammond, Louisiana. Our wholly-owned subsidiary, First Guaranty Bank, a Louisiana-chartered commercial bank, provides personalized commercial banking services primarily to Louisiana and Texas customers through 30 banking facilities primarily located in the MSAs of Hammond, Baton Rouge, Lafayette, Shreveport-Bossier City, and Alexandria, Louisiana and Dallas-Fort Worth-Arlington, Waco, Texas and Mideast markets in Kentucky and West Virginia. As announced in a Current Report on Form 8-K filed on March 10, 2026, First Guaranty has entered into a purchase and assumption agreement pursuant to which it would exit the Dallas-Fort Worth-Arlington and Waco, Texas markets. We emphasize personal relationships and localized decision making to ensure that products and services are matched to customer needs. We compete for business principally on the basis of personal service to customers, customer access to officers and directors and competitive interest rates and fees.
Current wording
First Guaranty Bancshares is a Louisiana corporation and a financial holding company headquartered in Hammond, Louisiana. Our wholly-owned subsidiary, First Guaranty Bank, a Louisiana-chartered commercial bank, provides personalized commercial banking services primarily to Louisiana and Texas customers through 30 banking facilities primarily located in the MSAs of Hammond, Baton Rouge, Lafayette, Shreveport-Bossier City, and Alexandria, Louisiana and Dallas-Fort Worth-Arlington, Waco, Texas and Mideast markets in Kentucky and West Virginia. As announced in a Current Report on Form 8-K filed on August 6, 2026, First Guaranty completed the sale of the Bank's Texas operations, consisting of five branches and related deposits, loans and certain other assets, to Armstrong Bank, Muskogee, Oklahoma. The sale was completed on July 31, 2026. We emphasize personal relationships and localized decision making to ensure that products and services are matched to customer needs. We compete for business principally on the basis of personal service to customers, customer access to officers and directors and competitive interest rates and fees.
Previous wording
Financial highlights for the first quarter and three months ended March 31, 2026 are as follows:
Current wording
Financial highlights for the second quarter and six months ended June 30, 2026 are as follows:
Previous wording
•Net income (loss) for the three months ended March 31, 2026 and 2025 was $2.7 million and $(6.2) million, respectively, an increase of $8.9 million.
Current wording
•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.
Previous wording
•Total assets decreased $119.8 million and were $4.0 billion at March 31, 2026 compared to $4.1 billion at December 31, 2025. Total loans at March 31, 2026 were $1.9 billion, a decrease of $145.2 million, or 7.0%, compared with December 31, 2025. Total deposits were $3.5 billion at March 31, 2026, a decrease of $125.3 million, or 3.4%, compared with December 31, 2025. Retained earnings were $16.1 million at March 31, 2026, an increase of $2.0 million compared to $14.1 million at December 31, 2025. Shareholders' equity was $224.0 million and $226.2 million at March 31, 2026 and December 31, 2025, respectively.
Current wording
•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. Retained earnings were $18.7 million at June 30, 2026, an increase of $4.7 million compared to $14.1 million at December 31, 2025. Shareholders' equity was $227.4 million and $226.2 million at June 30, 2026 and December 31, 2025, respectively.
Previous wording
•Earnings (loss) per common share were $0.14 and $(0.54) for the three months ended March 31, 2026 and 2025, respectively. Total weighted average shares outstanding were 15,796,040 and 12,506,792 for the three months ended March 31, 2026 and 2025, respectively.
Current wording
•Earnings (loss) per common share were $0.17 and $(0.61) for the three months ended June 30, 2026 and 2025, respectively. Total weighted average shares outstanding were 16,326,060 and 12,910,785 for the three months ended June 30, 2026 and 2025, respectively. Earnings (loss) per common share were $0.31 and $(1.15) for the six months ended June 30, 2026 and 2025, respectively. Total weighted average shares outstanding were 16,062,514 and 12,709,905 for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
•The allowance for credit losses was 2.00% of total loans at March 31, 2026 compared to 1.97% at December 31, 2025.
Current wording
•The allowance for credit losses was 1.94% of total loans at June 30, 2026 compared to 1.97% at December 31, 2025.
Previous wording
•Net interest income for the three months ended March 31, 2026 was $20.7 million compared to $22.2 million for the three months ended March 31, 2025.
Current wording
•Net interest income for the three months ended June 30, 2026 was $22.3 million compared to $22.2 million for the three months ended June 30, 2025. Net interest income for the six months ended June 30, 2026 was $43.0 million compared to $44.5 million for the six months ended June 30, 2025.
Previous wording
•The provision for credit losses for the three months ended March 31, 2026 was $2.6 million compared to $14.5 million for the three months ended March 31, 2025.
Current wording
•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.
Previous wording
•Charge-offs were $5.4 million during the three months ended March 31, 2026 and $6.9 million during the same period in 2025. Recoveries totaled $0.5 million during the three months ended March 31, 2026 and $0.2 million during the same period in 2025.
Current wording
•Charge-offs were $7.7 million during the three months ended June 30, 2026 and $1.1 million during the same period in 2025. Recoveries totaled $0.9 million during the three months ended June 30, 2026 and $0.2 million during the same period in 2025. Charge-offs were $13.2 million during the six months ended June 30, 2026 and $8.0 million during the same period in 2025. Recoveries totaled $1.5 million during the six months ended June 30, 2026 and $0.4 million during the same period in 2025.
Previous wording
•First Guaranty had $28.9 million of other real estate owned as of March 31, 2026 compared to $35.1 million at December 31, 2025.
Current wording
•First Guaranty had $29.7 million of other real estate owned as of June 30, 2026 compared to $35.1 million at December 31, 2025.
Previous wording
•The net interest margin for the three months ended March 31, 2026 was 2.07% which was a decrease of 28 basis points from the net interest margin of 2.35% for the same period in 2025. Loans as a percentage of average interest earning assets decreased to 49.5% at March 31, 2026 compared to 68.5% at March 31, 2025.
Current wording
•The net interest margin for the three months ended June 30, 2026 was 2.37% which was an increase of 3 basis points from the net interest margin of 2.34% for the same period in 2025. The net interest margin for the six months ended June 30, 2026 was 2.22% which was a decrease of 13 basis points from the net interest margin of 2.35% for the same period in 2025. Loans as a percentage of average interest earning assets decreased to 49.5% at June 30, 2026 compared to 66.5% at June 30, 2025.
Previous wording
•Investment securities totaled $1.2 billion at March 31, 2026, an increase of $177.6 million when compared to $999.3 million at December 31, 2025. At March 31, 2026, available for sale securities, at fair value, totaled $853.9 million, an increase of $177.3 million when compared to $676.6 million at December 31, 2025. At March 31, 2026, held to maturity securities, at amortized cost and net of the allowance for credit losses totaled $322.9 million, an increase of $0.3 million when compared to $322.7 million at December 31, 2025. The allowance for credit losses for HTM securities was $0.2 million at March 31, 2026 and December 31, 2025.
Current wording
•Investment securities totaled $1.2 billion at June 30, 2026, an increase of $214.7 million when compared to $999.3 million at December 31, 2025. At June 30, 2026, available for sale securities, at fair value, totaled $890.8 million, an increase of $214.2 million when compared to $676.6 million at December 31, 2025. At June 30, 2026, held to maturity securities, at amortized cost and net of the allowance for credit losses totaled $323.2 million, an increase of $0.5 million when compared to $322.7 million at December 31, 2025. The allowance for credit losses for HTM securities was $0.2 million at June 30, 2026 and December 31, 2025.
Previous wording
•Total loans net of unearned income were $1.9 billion at March 31, 2026, a net decrease of $145.2 million from December 31, 2025. Total loans net of unearned income are reduced by the allowance for credit losses which totaled $38.5 million at March 31, 2026 and $40.8 million at December 31, 2025, respectively.
Current wording
•Total loans net of unearned income were $1.8 billion at June 30, 2026, a net decrease of $304.6 million from December 31, 2025. Total loans net of unearned income are reduced by the allowance for credit losses which totaled $34.3 million at June 30, 2026 and $40.8 million at December 31, 2025, respectively.
Previous wording
•Nonaccrual loans decreased $5.2 million to $54.4 million at March 31, 2026 compared to $59.6 million at December 31, 2025.
Current wording
•Nonaccrual loans decreased $19.0 million to $40.6 million at June 30, 2026 compared to $59.6 million at December 31, 2025.
Previous wording
•At March 31, 2026, the largest 10 non-performing loan relationships comprise 77% of total non-performing assets. Additional details on the non-performing relationships are as follows:
Current wording
•At June 30, 2026, the largest 10 non-performing loan relationships comprise 78% of total non-performing assets. Additional details on the non-performing relationships are as follows:
Previous wording
A $1.4 million guaranteed loan secured by livestock and farmland located in Louisiana; the loan was placed in nonaccrual in the fourth quarter of 2024.
Current wording
•A $2.4 million guaranteed loan secured by livestock and farmland located in Louisiana; the loan was placed in nonaccrual in the fourth quarter of 2024.
Previous wording
A $1.3 million loan secured by commercial real estate in Texas; the loan was placed on nonaccrual during the third quarter of 2024.
Current wording
•A $1.0 million loan secured by commercial real estate in Texas; the loan was placed on nonaccrual during the third quarter of 2024.
Previous wording
A $1.2 million loan secured by a mobile home park located in New Mexico; the loan was placed on nonaccrual during the third quarter of 2024.
Current wording
•A $0.8 million loan secured by a mobile home park located in New Mexico; the loan was transferred to other real estate owned in the second quarter of 2026.
Previous wording
•First Guaranty charged off $5.4 million in loan balances during the first quarter of 2026. The details of the $5.4 million in charged-off loans were as follows:
Current wording
•First Guaranty charged off $7.7 million in loan balances during the second quarter of 2026. The details of the $7.7 million in charged-off loans were as follows:
Previous wording
First Guaranty charged off $1.8 million on a commercial and industrial loan during the first quarter of 2026. The relationship had a balance of $3.7 million at December 31, 2025, and no remaining principal balance as of March 31, 2026, as the relationship was subsequently sold after the charge-down.
Current wording
•First Guaranty charged off $0.8 million on a commercial lease relationship during the second quarter of 2026. This relationship had no remaining principal balance as of June 30, 2026.
Previous wording
First Guaranty charged off $1.0 million on a non-farm non-residential loan relationship secured by retail real estate during the first quarter of 2026. This relationship had no remaining principal balance as of March 31, 2026.
Current wording
•First Guaranty charged off $0.7 million on a non-farm non-residential loan relationship during the second quarter of 2026. This relationship had a remaining principal balance of $0.4 million as of June 30, 2026.
Previous wording
Smaller loans and overdrawn deposit accounts comprised the remaining $2.6 million of charge-offs for the first quarter of 2026.
Current wording
•Smaller loans and overdrawn deposit accounts comprised the remaining $0.5 million of charge-offs for the second quarter of 2026.
Previous wording
•Special mention loan relationships totaled $316.1 million as of March 31, 2026, a decline of $13.4 million compared to December 31, 2025.
Current wording
•Special mention loan relationships totaled $186.6 million as of June 30, 2026, a decline of $142.9 million compared to December 31, 2025.
Previous wording
•Noninterest expense totaled $16.7 million for the first quarter 2026, $16.8 million for the fourth quarter of 2025, $30.2 million for the third quarter of 2025 (including $12.9 million of goodwill impairment), $17.3 million for the second quarter of 2025, and $18.0 million for the first quarter of 2025. Full time equivalent employees totaled 330 at March 31, 2026 compared to 380 at March 31, 2025.
Current wording
•Noninterest expense totaled $17.2 million for the second quarter 2026, $16.7 million for the first quarter 2026, $16.8 million for the fourth quarter of 2025, $30.2 million for the third quarter of 2025 (including $12.9 million of goodwill impairment), and $17.3 million for the second quarter of 2025. Full time equivalent employees totaled 333 at June 30, 2026 compared to 360 at June 30, 2025.
Previous wording
•Return on average assets for the three months ended March 31, 2026 and 2025 was 0.27% and (0.63)%, respectively. Return on average common equity for the three months ended March 31, 2026 and 2025 was 4.52% and (12.29)% respectively. Return on average assets is calculated by dividing annualized net income by average assets. Return on average common equity is calculated by dividing annualized net income by average common equity.
Current wording
•Return on average assets for the three months ended June 30, 2026 and 2025 was 0.35% and (0.75)%, respectively. Return on average assets for the six months ended June 30, 2026 and 2025 was 0.31% and (0.69)%, respectively. Return on average common equity for the three months ended June 30, 2026 and 2025 was 5.95% and (14.33)%, respectively. Return on average common equity for the six months ended June 30, 2026 and 2025 was 5.24% and (13.31)% respectively. Return on average assets is calculated by dividing annualized net income by average assets. Return on average common equity is calculated by dividing annualized net income by average common equity.
Previous wording
•Book value per common share was $11.91 as of March 31, 2026 compared to $12.23 as of December 31, 2025. The decrease was due primarily to the changes in accumulated other comprehensive income ("AOCI") and recent issuance of new shares. AOCI is comprised of unrealized gains and losses on available for sale securities, including unrealized losses on available for sale securities at the time of transfer to held to maturity.
Current wording
•Book value per common share was $11.75 as of June 30, 2026 compared to $12.23 as of December 31, 2025. The decrease was due primarily to the changes in accumulated other comprehensive income ("AOCI") and recent issuance of new shares. AOCI is comprised of unrealized gains and losses on available for sale securities, including unrealized losses on available for sale securities at the time of transfer to held to maturity.
Previous wording
•First Guaranty's Board of Directors declared cash dividends of $0.01 per common share in the first quarter of 2026 and 2025. First Guaranty has paid 131 consecutive quarterly dividends as of March 31, 2026.
Current wording
•First Guaranty's Board of Directors declared cash dividends of $0.01 per common share in the second quarter of 2026 and 2025. First Guaranty has paid 132 consecutive quarterly dividends as of June 30, 2026.
Previous wording
•First Guaranty paid preferred stock dividends of $0.6 million during the first three months of 2026 and 2025.
Current wording
•First Guaranty paid preferred stock dividends of $1.2 million during the first six months of 2026 and 2025.
Previous wording
•On March 10, 2026, First Guaranty Bank entered into an agreement with Armstrong Bank, Muskogee, Oklahoma, to sell the Bank's Texas operations, consisting of five branches and related deposits, loans and certain other assets, to Armstrong Bank. The transaction is expected to consist of approximately $270 million in deposits and $110 million in loans.
Current wording
•On July 31, 2026, First Guaranty Bank completed the sale of the Bank's Texas operations, consisting of five branches and related deposits, loans and certain other assets, to Armstrong Bank, Muskogee, Oklahoma. The transaction is expected to consist of approximately $234 million in deposits and $88 million in loans.
Previous wording
Total assets at March 31, 2026 were $4.0 billion, a decrease of $119.8 million from December 31, 2025. Assets decreased primarily due to a decrease in net loans of $143.0 million and cash and cash equivalents of $111.9 million partially offset by an increase in investment securities of $177.6 million at March 31, 2026 compared to December 31, 2025.
Current wording
Total assets at June 30, 2026 were $3.9 billion, a decrease of $183.3 million from December 31, 2025. Assets decreased primarily due to a decrease in net loans of $298.1 million and cash and cash equivalents of $64.1 million partially offset by an increase in investment securities of $214.7 million at June 30, 2026 compared to December 31, 2025.
Previous wording
Net loans decreased $143.0 million, or 7.0%, to $1.9 billion at March 31, 2026 from December 31, 2025. First Guaranty adopted a change in its business plan in July 2024 that focused on reducing risk in the balance sheet, including risk associated with the loan portfolio. As part of this strategy, First Guaranty has reduced loan originations, charged-off loan balances and conducted select loan sales, which have each contributed to a decline in loan balances. Non-farm non-residential loan balances decreased $69.5 million due to paydowns on the existing portfolio. Construction and land development loans decreased $39.7 million principally due to the conversion of existing loans to permanent financing. Multifamily loans decreased $16.3 million primarily due to paydowns. Commercial and industrial loans decreased $14.4 million primarily due to the sale of loans, paydowns and charge-offs. Commercial lease loan balances decreased $4.5 million primarily due to paydowns on the existing lease portfolio. First Guaranty's commercial lease portfolio generally has higher yields than commercial real estate loans but shorter average lives. Consumer and other loans decreased $2.0 million primarily due to paydowns. One-to-four family residential loans decreased $1.3 million primarily due to charge-offs and paydowns. Farmland loans decreased $0.8 million primarily due to seasonal activity. Agricultural loans increased $2.7 million due to seasonal activity. First Guaranty had approximately 3.8% of funded and 1.4% of unfunded commitments in our loan portfolio to businesses engaged in support or service activities for oil and gas operations. First Guaranty's hotel and hospitality portfolio totaled $130.9 million at March 31, 2026. First Guaranty had $122.7 million in loans related to our Texas markets at March 31, 2026 compared to $192.6 million at December 31, 2025. As noted above, First Guaranty has entered into an agreement to sell its Texas operations. First Guaranty had $343.3 million in loans related to our Mideast markets in Kentucky and West Virginia at March 31, 2026 compared to $323.1 million at December 31, 2025. Syndicated loans at March 31, 2026 were $51.6 million, of which $22.3 million were shared national credits. Syndicated loans increased $1.3 million from $50.3 million at December 31, 2025.
Current wording
Net loans decreased $298.1 million, or 14.7%, to $1.7 billion at June 30, 2026 from December 31, 2025. First Guaranty adopted a change in its business plan in July 2024 that focused on reducing risk in the balance sheet, including risk associated with the loan portfolio. As part of this strategy, First Guaranty has reduced loan originations, charged-off loan balances and conducted select loan sales, which have each contributed to a decline in loan balances. Non-farm non-residential loan balances decreased $158.2 million due to paydowns on the existing portfolio. Multifamily loans decreased $58.5 million primarily due to paydowns. Construction and land development loans decreased $50.5 million principally due to the conversion of existing loans to permanent financing. Commercial lease loan balances decreased $19.0 million primarily due to paydowns on the existing lease portfolio and due to the charge-off of a remaining $5.7 million balance on one lease loan relationship. First Guaranty's commercial lease portfolio generally has higher yields than commercial real estate loans but shorter average lives. Consumer and other loans decreased $11.8 million primarily due to paydowns. Commercial and industrial loans decreased $6.1 million primarily due to the sale of loans, paydowns and charge-offs. One-to-four family residential loans decreased $8.4 million primarily due to charge-offs and paydowns. Farmland loans decreased $1.3 million primarily due to seasonal activity. Agricultural loans increased $7.6 million due to seasonal activity. First Guaranty had approximately 2.1% of funded and 1.9% of unfunded commitments in our loan portfolio to businesses engaged in support or service activities for oil and gas operations. First Guaranty's hotel and hospitality portfolio totaled $121.0 million at June 30, 2026. First Guaranty had $101.0 million in loans related to our Texas markets at June 30, 2026 compared to $192.6 million at December 31, 2025. As noted above, on July 31, 2026, the Bank completed the sale of its Texas operations, including approximately $88.4 million in Texas loans as of such date. First Guaranty had $341.4 million in loans related to our Mideast markets in Kentucky and West Virginia at June 30, 2026 compared to $323.1 million at December 31, 2025. Syndicated loans at June 30, 2026 were $51.4 million, of which $22.1 million were shared national credits. Syndicated loans increased $1.1 million from $50.3 million at December 31, 2025. Syndicated loans were subsequently reduced by $23.2 million by a loan payoff in the third quarter of 2026.
Previous wording
As of March 31, 2026, 81.6% of our loan portfolio was secured by real estate. The largest portion of our loan portfolio, at 45.5% as of March 31, 2026, was non-farm non-residential loans secured by real estate. Approximately 57.6% of the loan portfolio was based on a floating rate tied to the prime rate, Secured Overnight Financing Rate ("SOFR"), or Treasury rates as of March 31, 2026. This amount includes loans that convert to floating rates following an initial fixed rate period, which typically ranges from one, three, or five year periods. 39.9% of the loan portfolio is scheduled to mature within five years from March 31, 2026.
Current wording
As of June 30, 2026, 80.6% of our loan portfolio was secured by real estate. The largest portion of our loan portfolio, at 44.7% as of June 30, 2026, was non-farm non-residential loans secured by real estate. Approximately 56.8% of the loan portfolio was based on a floating rate tied to the prime rate, Secured Overnight Financing Rate ("SOFR"), or Treasury rates as of June 30, 2026. This amount includes loans that convert to floating rates following an initial fixed rate period, which typically ranges from one, three, or five year periods. 36.6% of the loan portfolio is scheduled to mature within five years from June 30, 2026.
Previous wording
First Guaranty has diversified its CRE portfolio across both industries and geographic location. The following is a summary of the largest CRE related loans associated with hotel and motels, office properties, apartment complexes, healthcare related properties, and properties under construction as of March 31, 2026. First Guaranty generally does not finance multi-story office buildings in major metropolitan areas. The largest CRE loan secured by a hotel or motel totaled $19.2 million. The property is a flagged hotel located in Texas. The largest CRE loan secured by an office related property totaled $20.8 million and is located in West Virginia. The largest CRE loan secured by an apartment complex totaled $40.2 million and is located in Louisiana. The largest healthcare related loan is a $33.5 million property secured by an assisted living center located in Alabama. The largest CRE loan under construction totaled $16.5 million for a multipurpose CRE building and is secured by a property located in Louisiana.
Current wording
First Guaranty has diversified its CRE portfolio across both industries and geographic location. The following is a summary of the largest CRE related loans associated with hotel and motels, office properties, apartment complexes, healthcare related properties, and properties under construction as of June 30, 2026. First Guaranty generally does not finance multi-story office buildings in major metropolitan areas. The largest CRE loan secured by a hotel or motel totaled $19.1 million. The property is a flagged hotel located in Texas. The largest CRE loan secured by an office related property totaled $20.7 million and is located in West Virginia. The largest CRE loan secured by an apartment complex totaled $22.9 million and is located in Florida. The largest healthcare related loan is a $33.5 million property secured by an assisted living center located in Alabama. The largest CRE loan under construction totaled $14.6 million for a RV resort park and is secured by a property located in Louisiana.
Previous wording
As of March 31, 2026, the Bank’s total exposure (including outstanding loans and commitments) to its ten largest borrower relationships represented approximately 20.3% of the Bank’s loan portfolio. The majority of these relationships are real estate secured. Below is a summary of those ten largest lending relationships:
Current wording
As of June 30, 2026, the Bank’s total exposure (including outstanding loans and commitments) to its ten largest borrower relationships represented approximately 21% of the Bank’s loan portfolio. The majority of these relationships are real estate secured. All of the loans below were on accrual status as of June 30, 2026. Below is a summary of those ten largest lending relationships:
Previous wording
The decrease in classified assets at March 31, 2026 as compared to December 31, 2025 was due to a $46.6 million decrease in substandard loans and a $3.7 million decrease in doubtful loans. The decrease in substandard loans was primarily the result of $31.5 million in loan payoffs and $1.7 million in charge-offs in the first quarter of 2026. The decrease in doubtful loans was driven by the sale of a $3.7 million commercial and industrial loan relationship. The Bank recorded as $1.8 million charge-off as the result of the sale Special mention loans decreased by $13.4 million in 2026. The decrease in special mention loans was primarily the result of $10.3 million in loan payoffs.
Current wording
The decrease in classified assets at June 30, 2026 as compared to December 31, 2025 was due to a $70.9 million decrease in substandard loans and a $9.4 million decrease in doubtful loans. The decrease in substandard loans was primarily the result of the payoff of a $19.2 million non-farm non-residential loan relationship, a $15.1 million construction and land development loan relationship, a $14.5 million non-farm non-residential loan relationship, and a $14.3 million commercial loan relationship. The decrease in doubtful loans was driven by the sale of a $3.7 million commercial and industrial loan relationship. The Bank recorded as $1.8 million charge-off as the result of the sale. Special mention loans decreased by $142.9 million in 2026. The decrease in special mention loans was primarily the result of the upgrade of a $22.9 million multifamily loan and $15.9 million non-farm non-residential loan to pass status and the payoff of a $40.0 million multifamily loan and a $20.1 million non-farm non-residential loan relationship.
Previous wording
Net loans are reduced by the allowance for credit losses which totaled $38.5 million at March 31, 2026 and $40.8 million at December 31, 2025. Loan charge-offs were $5.4 million during the first three months of 2026 and $6.9 million during the same period in 2025. Recoveries totaled $0.5 million during the first three months of 2026 and $0.2 million during the same period in 2025. The provision for credit losses totaled $2.6 million for the first three months of 2026 and $14.5 million for the same period in 2025. See Note 4 of the Notes to Consolidated Financial Statements for more information on loans and Note 5 for more information on the allowance for credit losses.
Current wording
Net loans are reduced by the allowance for credit losses which totaled $34.3 million at June 30, 2026 and $40.8 million at December 31, 2025. Loan charge-offs were $13.2 million during the first six months of 2026 and $8.0 million during the same period in 2025. Recoveries totaled $1.5 million during the first six months of 2026 and $0.4 million during the same period in 2025. The provision for credit losses totaled $5.3 million for the first six months of 2026 and $31.2 million for the same period in 2025. See Note 4 of the Notes to Consolidated Financial Statements for more information on loans and Note 5 for more information on the allowance for credit losses.
Previous wording
Investment securities net of the allowance for credit losses at March 31, 2026 totaled $1.2 billion, an increase of $177.6 million compared to $999.3 million at December 31, 2025. The portfolio consists of both available for sale (AFS) and held to maturity securities (HTM). The securities designated as held to maturity are agency and corporate debt securities that are part of First Guaranty’s investment strategy and public funds collateralization program. We purchase securities for our investment portfolio to provide a source of liquidity, to provide an appropriate return on funds invested, to manage interest rate risk and meet pledging requirements for public funds and borrowings.
Current wording
Investment securities net of the allowance for credit losses at June 30, 2026 totaled $1.2 billion, an increase of $214.7 million compared to $999.3 million at December 31, 2025. The portfolio consists of both available for sale (AFS) and held to maturity securities (HTM). The securities designated as held to maturity are agency and corporate debt securities that are part of First Guaranty’s investment strategy and public funds collateralization program. We purchase securities for our investment portfolio to provide a source of liquidity, to provide an appropriate return on funds invested, to manage interest rate risk and meet pledging requirements for public funds and borrowings.
Showing the first 40 of 83 pairs. Open the source sections for the rest.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
Interest income on securities increased $11.2 million to $22.5 million for the six months ended June 30, 2026 as compared to the prior year period primarily as a result of an increase in average balance and average yield of securities. The average balance of securities increased $509.7 million to $1.2 billion for the six months ended June 30, 2026 from $664.4 million for the six months ended June 30, 2025 primarily due to a increase in the average balance of our mortgage-backed securities and collateralized mortgage obligations securities portfolio compared to the prior year. The average yield on securities increased 43 basis points to 3.86% for the six months ended June 30, 2026 compared to 3.43% for the six months ended June 30, 2025 due to the increase in higher yielding securities.
Current report — wording carried from elsewhere
Interest income on loans decreased $17.6 million or 20.97%, to $66.4 million for the six months ended June 30, 2026 as compared to the prior year period as a result of a decrease in the average balance of loans. The average balance of loans (excluding loans held for sale) decreased by $605.8 million to $1.9 billion for the six months ended June 30, 2026 from $2.5 billion for the six months ended June 30, 2025 largely as a result of loan sales and payoffs on the portfolio. This was partially offset by an increase in the average yield on loans (excluding loans held for sale) of 25 basis points to 6.91% for the six months ended June 30, 2026 from 6.66% for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Six months ended June 30, 2026 compared to the six months ended June 30, 2025. Interest expense decreased $3.7 million, or 5.8%, to $60.6 million for the six months ended June 30, 2026 from $64.3 million for the six months ended June 30, 2025 due primarily to a decrease on the average rate of interest-bearing liabilities, partially offset by an increase in the average balance of interest-bearing liabilities. The average balance of interest-bearing liabilities increased by $131.8 million during the six months ended June 30, 2026 to $3.4 billion as compared to the prior year period. This increase was a result of a $394.1 million increase in the average balance of time deposits, partially offset by a $224.2 million decrease in the average balance of interest-bearing demand deposits, a $23.0 million decrease in the average balance of savings deposits, and a $15.1 million decrease in the average balance of borrowings. The average rate of interest-bearing demand deposits was 3.14% for the six months ended June 30, 2026 and 3.67% for the six months ended June 30, 2025. The decrease in market interest rates, particularly U.S. Treasury rates, contributed to the decrease in rates paid on interest-bearing demand deposits. The largest concentration of interest-bearing demand deposits is associated with public funds deposits that are primarily indexed to Treasury rates. The average rate of time deposits decreased 41 basis points during the six months ended June 30, 2026 to 3.99% as compared to the prior year period. The decrease in the average rate of time deposits was due to changes in market rates as existing time deposits repriced.
Current report — wording carried from elsewhere
(1)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
Current report — wording carried from elsewhere
(2)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
Current report — wording carried from elsewhere
(3)Net interest margin represents net interest income divided by average total interest-earning assets.
Current report — wording carried from elsewhere
(4)The tax adjusted net interest margin was 2.23% and 2.35% for the above periods ended June 30, 2026 and 2025, respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended June 30, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, the provision for credit losses was $5.3 million compared to $31.2 million for the same period in 2025. The decrease in the provision was primarily impacted by changes in the loan portfolio. Total charge-offs were $13.2 million for the six months ended June 30, 2026 and $8.0 million for the same period in 2025. Charge-offs for the six months ended June 30, 2026 were concentrated in one commercial lease loan relationship, one commercial and industrial loan and one non-farm non-residential loan relationship secured by retail real estate. Partially offsetting these charge-offs were recoveries that totaled $1.5 million for the six months ended June 30, 2026 and $0.4 million for the same period in 2025.
Current report — wording carried from elsewhere
Noninterest income totaled $4.1 million for the six months ended June 30, 2026, a decrease of $0.4 million from $4.5 million for the six months ended June 30, 2025. The decrease was primarily due to a decrease in ATM and debit card fees and service charges, commissions, and fees. Service charges, commissions and fees totaled $1.5 million for the six months ended June 30, 2026 and $1.7 million for the same period in 2025. ATM and debit card fees totaled $1.3 million for the six months ended June 30, 2026 and $1.5 million for the same period in 2025. Net gains on the sale of securities were $1,000 for the six months ended June 30, 2026 compared to $0 for the same period in 2025. Net gains on the sale of assets were $44,000 for the six months ended June 30, 2026 compared to $4,000 for the same period in 2025. Other noninterest income totaled $1.3 million for the six months ended June 30, 2026 and 2025.
Current report — wording carried from elsewhere
Noninterest expense totaled $33.9 million for the six months ended June 30, 2026, compared to $35.3 million for the same period in 2025. The decrease was primarily attributable to lower salaries and employee benefits expense, partially offset by increases in other real estate and regulatory assessment expenses. Salaries and employee benefits expense decreased to $14.4 million for the six months ended June 30, 2026, compared to $16.3 million for the same period in 2025. Occupancy and equipment expense was $4.8 million for the six months ended June 30, 2026, compared to $5.2 million for the same period in 2025. Other noninterest expense totaled $14.7 million for the six months ended June 30, 2026, compared to $13.8 million for the same period in 2025. Legal fees decreased to $1.5 million during the six months ended June 30, 2026, compared to $1.8 million for the same period in 2025, primarily due to higher legal costs in the first six months of 2025 related to loan sales. This decrease was partially offset by higher costs associated with other real estate owned and increased regulatory assessment expense. Net costs related to other real estate and repossessions totaled $0.9 million for the six months ended June 30, 2026, compared to $74,000 for the same period in 2025, primarily due to costs associated with an independent living center that is in other real estate owned. Regulatory assessment expense increased to $3.6 million for the six months ended June 30, 2026, from $3.2 million for the same period in 2025.
Current report — wording carried from elsewhere
The provision for income taxes for the six months ended June 30, 2026 was $1.7 million compared to a benefit of $4.0 million for the same period in 2025. The provision for income taxes increased due to an increase in income before income taxes. First Guaranty's statutory tax rate was 21.0% for the six months ended June 30, 2026 and 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Noninterest expense totaled $16.7 million for the three months ended March 31, 2026, compared to $18.0 million for the same period in 2025. The decrease was primarily attributable to lower salaries and employee benefits expense, partially offset by increases in other real estate and regulatory assessment expenses.