First Guaranty Bancshares, Inc. Announces Third Quarter 2026 Financial Results (Form 8-K)

First Guaranty Bancshares, Inc. Announces Third Quarter 2026 Financial Results

Hammond, Louisiana, October 27, 2026 - First Guaranty Bancshares, Inc. ("First Guaranty") (NASDAQ: FGBI), the holding company for First Guaranty Bank, announced its unaudited financial results for the third quarter and nine months ending September 30, 2026.

Financial Highlights for the third quarter and nine months ended September 30, 2026, are as follows:

•Net income (loss) for the three months ended September 30, 2026 and 2025 was $12.0 million and $(45.0) million, respectively. Net income (loss) for the nine months ended September 30, 2026 and 2025 was $18.1 million and $(58.5) million, respectively, an increase of $76.6 million.

•Third quarter 2026 results were impacted by the sale of First Guaranty Bank's Texas operations and the Bank's strategic changes undertaken in response to the issuance of a Consent Order by the FDIC and OFI (the "Consent Order"), effective August 7, 2026, as previously discussed in the Current Report on Form 8-K dated August 7, 2026.

•On July 31, 2026, First Guaranty Bank completed the sale of its Texas operations to Armstrong Bank, Muskogee, Oklahoma. The transaction included five branches and approximately $234 million of deposits, $88 million of loans, and certain other related assets.

•Key metrics of the Texas sale included the following items (all totals are pre-tax):

◦Deposit premium of 7.65% or $17.9 million.

◦Gain on sale of related real estate of $2.1 million.

◦Legal and professional fees including investment banking fees of $1.9 million.

◦Write off of remaining core deposit acquisition intangibles from 2019 acquisition that totaled $0.7 million.

◦One-time employee severance expenses that totaled $0.1 million.

◦Loans were sold at par with no discount. $0.3 million of loan fees were accreted into income due to the sale.

◦First Guaranty estimates that net contribution of the Texas sale to pre-tax income was approximately $17.6 million.

•First Guaranty's strategy to comply with the Consent Order includes reducing excess leverage to meet the 9.0% Tier 1 Leverage Ratio requirement and reducing classified and non-performing assets. Notable actions taken or completed during the third quarter 2026 include:

◦Early payoff of $135.0 million in FHLB advances. A $0.5 million pre-payment penalty was incurred.

◦The Bank utilized the One-Way sell feature of reciprocal deposits that reduced surplus cash and deposits by $291.4 million as of September 30, 2026.

◦The Bank redeemed brokered deposits totaling $130.6 million with surplus cash.

◦First Guaranty signed a sales agreement to sell its largest non-performing asset. This OREO property totals $22.6 million. The property was written down by $0.7 million in the third quarter of 2026. First Guaranty anticipates that this transaction is expected to close in the fourth quarter of 2026. First Guaranty incurred $0.3 million in operating expenses related to this property in the third quarter of 2026.

◦First Guaranty wrote off an additional $0.8 million related to bank owned properties that were previously used for branch locations or owned for future branch development.

◦First Guaranty signed a letter of intent to sell its second largest non-performing asset. This loan totals $11.4 million. First Guaranty anticipates that this transaction is expected to close in the fourth quarter of 2026.

◦First Guaranty reduced substandard assets by $31.2 million in the third quarter of 2026.

•Total assets decreased $925.8 million and were $3.2 billion at September 30, 2026 compared to $4.1 billion at December 31, 2025. Total loans at September 30, 2026 were $1.6 billion, a decrease of $488.8 million, or 23.6%, compared with December 31, 2025. Total deposits were $2.9 billion at September 30, 2026, a decrease of $777.9 million, or 21.4%, compared with December 31, 2025. Retained earnings were $29.9 million at September 30, 2026, an increase of $15.9 million compared to $14.1 million at December 31, 2025. Shareholders' equity was $218.9 million and $226.2 million at September 30, 2026 and December 31, 2025, respectively.

•Earnings (loss) per common share were $0.69 and $(3.01) for the three months ended September 30, 2026 and 2025, respectively. Total weighted average shares outstanding were 16,540,173 and 15,122,702 for the three months ended September 30, 2026 and 2025, respectively. Earnings (loss) per common share were $1.01 and $(4.45) for the nine months ended September 30, 2026 and 2025, respectively. Total weighted average shares outstanding were 16,223,484 and 13,523,009 for the nine months ended September 30, 2026 and 2025, respectively.

•The allowance for credit losses was 2.30% of total loans at September 30, 2026 compared to 1.97% at December 31, 2025.

•Net interest income for the three months ended September 30, 2026 was $17.7 million compared to $22.2 million for the three months ended September 30, 2025. Net interest income for the nine months ended September 30, 2026 was $60.6 million compared to $66.7 million for the nine months ended September 30, 2025.

•The provision for credit losses for the three months ended September 30, 2026 was $3.8 million compared to $47.9 million for the three months ended September 30, 2025. The provision for credit losses for the nine months ended September 30, 2026 was $9.0 million compared to $79.1 million for the nine months ended September 30, 2025.

•Charge-offs were $2.5 million during the three months ended September 30, 2026 and $21.3 million during the same period in 2025. Recoveries totaled $0.7 million during the three months ended September 30, 2026 and $0.3 million during the same period in 2025. Charge-offs were $15.7 million during the nine months ended September 30, 2026 and $29.4 million during the same period in 2025. Recoveries totaled $2.2 million during the nine months ended September 30, 2026 and $0.7 million during the same period in 2025.

•First Guaranty had $28.0 million of other real estate owned as of September 30, 2026 compared to $35.1 million at December 31, 2025.

•The net interest margin for the three months ended September 30, 2026 was 2.08% which was a decrease of 26 basis points from the net interest margin of 2.34% for the same period in 2025. The net interest margin for the nine months ended September 30, 2026 was 2.17% which was a decrease of 18 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 September 30, 2026 compared to 65.1% at September 30, 2025.

•Investment securities totaled $1.2 billion at September 30, 2026, an increase of $162.5 million when compared to $999.3 million at December 31, 2025. At September 30, 2026, available for sale securities, at fair value, totaled $838.3 million, an increase of $161.7 million when compared to $676.6 million at December 31, 2025. At September 30, 2026, held to maturity securities, at amortized cost and net of the allowance for credit losses totaled $323.5 million, an increase of $0.8 million when compared to $322.7 million at December 31, 2025. The allowance for credit losses for HTM securities was $0.2 million at September 30, 2026 and December 31, 2025.

•Total loans net of unearned income were $1.6 billion at September 30, 2026, a net decrease of $488.8 million from December 31, 2025. Total loans net of unearned income are reduced by the allowance for credit losses which totaled $36.4 million at September 30, 2026 and $40.8 million at December 31, 2025, respectively.

•Nonaccrual loans decreased $15.8 million to $43.8 million at September 30, 2026 compared to $59.6 million at December 31, 2025.

•At September 30, 2026, the largest 10 non-performing loan relationships comprise 80% of total non-performing assets. Additional details on the non-performing relationships are as follows:

1.A $22.6 million loan relationship secured by an independent living center located in Louisiana; the loan was transferred to other real estate owned in the fourth quarter of 2025. A $0.7 million writedown to fair value was taken during the third quarter of 2026. First Guaranty signed a sales agreement to sell this property and the transaction is expected to close in the fourth quarter of 2026.

2.An $11.4 million loan relationship secured by an assisted living center located in Texas; the loan was placed on nonaccrual in the third quarter of 2025.

3.A $7.5 million loan relationship secured by commercial land development located in Texas; the loan was placed on nonaccrual in the second quarter of 2026.

4.A $5.2 million loan relationship was placed on nonaccrual during the second quarter of 2025. The loan is secured by multifamily apartment complexes located in Louisiana. This loan relationship had a specific reserve of $0.8 million as of September 30, 2026.

5.A $4.5 million loan relationship was placed on nonaccrual during the third quarter of 2026. The loan is secured by multifamily apartment complexes located in Texas. This loan relationship had a specific reserve of $0.8 million as of September 30, 2026.

6.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.

7.A $1.1 million loan secured by multiple office buildings located in West Virginia; the loan was placed on nonaccrual during the second quarter of 2025.

8.A $1.0 million loan secured by a hotel in Louisiana; the loan was placed on nonaccrual during the second quarter of 2026.

9.A $0.9 million loan secured by commercial real estate in Texas; the loan was placed on nonaccrual during the third quarter of 2024.

10.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. This loan relationship had a specific reserve of $0.3 million as of September 30, 2026.

•First Guaranty charged off $2.5 million in loan balances during the third quarter of 2026. The details of the $2.5 million in charged-off loans were as follows:

1.First Guaranty charged off $1.8 million on a multifamily relationship during the third quarter of 2026. This relationship had a remaining principal balance of $4.5 million as of September 30, 2026.

2.First Guaranty charged off $0.5 million on a non-farm non-residential loan relationship during the third quarter of 2026. This relationship had a remaining principal balance of $1.0 million as of September 30, 2026.

3.Smaller loans and overdrawn deposit accounts comprised the remaining $0.2 million of charge-offs for the third quarter of 2026.

•Special mention loan relationships totaled $138.0 million as of September 30, 2026, a decline of $191.4 million compared to December 31, 2025.

•Substandard loan relationships totaled $245.4 million as of September 30, 2026, a decline of $102.2 million compared to December 31, 2025.

•There were no doubtful loan relationships as of September 30, 2026, a decline of $9.4 million compared to December 31, 2025.

•OREO properties include $3.6 million in bank properties that previously were active branches or were acquired for future development. The largest facility totals $1.9 million and is under contract with an expected sale in the fourth quarter of 2026. A total of $0.8 million in OREO write downs were taken in the third quarter of 2026 related to these bank facilities.

•Noninterest expense totaled $18.9 million for the third quarter 2026, $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, and $30.2 million for the third quarter of 2025 (including $12.9 million of goodwill impairment). Full time equivalent employees totaled 308 at September 30, 2026 compared to 339 at September 30, 2025.

•Return on average assets for the three months ended September 30, 2026 and 2025 was 1.36% and (4.61)%, respectively. Return on average assets for the nine months ended September 30, 2026 and 2025 was 0.63% and (2.00)%, respectively. Return on average common equity for the three months ended September 30, 2026 and 2025 was 22.74% and (78.41)%, respectively. Return on average common equity for the nine months ended September 30, 2026 and 2025 was 11.24% and (35.83)% 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.

•Book value per common share was $11.17 as of September 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.

•First Guaranty's Board of Directors declared cash dividends of $0.01 per common share in the third quarter of 2026 and 2025. First Guaranty has paid 133 consecutive quarterly dividends as of September 30, 2026.

•First Guaranty paid preferred stock dividends of $1.7 million during the first nine months of 2026 and 2025.

About First Guaranty

First Guaranty Bancshares, Inc. is the holding company for First Guaranty Bank, a Louisiana state-chartered bank. Founded in 1934, First Guaranty Bank offers a wide range of financial services and focuses on building client relationships and providing exceptional customer service. First Guaranty Bank currently operates twenty-five locations throughout Louisiana, Kentucky and West Virginia. First Guaranty's common stock trades on the NASDAQ under the symbol FGBI. For more information, visit www.fgb.net.