FGBI · First Guaranty Bancshares, Inc.

First Guaranty Bancshares demonstrated a significant financial turnaround in the first quarter of 2026, reporting net income of $2.7 million compared to a net loss of $6.2 million in the same period of 2025. This improvement was primarily driven by a sharp reduction in the provision for credit losses, which fell to $2.6 million from $14.5 million year-over-year, alongside a decrease in noninterest expenses to $16.7 million from $18.0 million. CEO Michael R. Mineer highlighted the bank's progress in executing its strategy to reduce balance sheet risk and strengthen capital, noting a $12.0 million reduction in nonperforming assets and a 123 basis point improvement in the bank risk-weighted capital ratio to 14.71%. Asset quality metrics showed mixed trends; while nonaccrual loans decreased by $5.2 million, special mention and substandard loan relationships also declined, indicating potential stabilization in the credit portfolio. However, the bank faced margin pressure, with the net interest margin contracting 28 basis points to 2.07% due to a shift in the asset mix, as loans as a percentage of average interest-earning assets fell to 49.5% from 68.5%. Total loans decreased by $145.2 million, or 7.0%, while investment securities increased by $177.6 million. The Board maintained a conservative capital return policy, declaring a cash dividend of $0.01 per share, consistent with the strategy to preserve capital.