First Guaranty Bancshares (FGBI) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $2.7 million, up $8.9 million from a net loss of $6.2 million in Q1 2025, driven by a lower provision for credit losses.

• Total assets decreased to $4.0 billion, loans to $1.9 billion, and deposits to $3.5 billion compared to December 31, 2025, mainly due to declines in net loans and cash, partially offset by higher investment securities.

• Earnings per common share were $0.14, compared to a loss of $0.54 per share in Q1 2025.

• Nonperforming assets reduced by $12.0 million; positive earnings to common shareholders of $2.2 million.

• Risk weighted capital ratio improved to 14.71% from 13.48% sequentially.

Financial highlights

• Net interest income was $20.7 million, down from $22.2 million in Q1 2025.

• Net interest margin declined to 2.07% from 2.35% year-over-year.

• Provision for credit losses was $2.6 million, significantly lower than $14.5 million in Q1 2025.

• Noninterest expense was $16.7 million, down from $18.0 million in Q1 2025, mainly due to lower salaries and benefits.

• Book value per common share was $11.91 at March 31, 2026, down from $12.23 at year-end 2025.

Outlook and guidance

• The company is executing a strategy to reduce risk in the balance sheet, including lower loan originations and select loan sales.

• Exiting the Dallas-Fort Worth-Arlington and Waco, Texas markets through a sale of five branches, $270 million in deposits, and $110 million in loans.

• Dividend reduced to $0.01 per share to preserve capital as part of the new business strategy.

• Management expects continued focus on risk reduction and balance sheet optimization.