First Guaranty Bancshares Reports Third Quarter 2026 Results and Provides Strategic Update

What happened

First Guaranty Bancshares reported third quarter 2026 net income of $12.0 million, or $0.69 per common share. The quarter included completing the sale of the Bank's Texas operations to Armstrong Bank on July 31, 2026, which contributed an estimated $17.6 million pre-tax gain.

Confirmed

Global impact / market context

The Texas sale produced a large one-time gain that lifted reported profit, so investors should separate it from ongoing earnings. The bank also reduced borrowed money and deposits, which shrinks its balance sheet and may lower funding costs and risk.

Analyst inference

Banks are watched for capital strength and asset quality. First Guaranty improved its Tier 1 leverage ratio, a measure of core capital against assets, to 8.29%, and cut wholesale funding, which means borrowed money such as FHLB advances and brokered deposits.

Analyst inference

What to watch

1. The bank prepaid $135.0 million in FHLB advances, reduced deposits by $291.4 million through reciprocal deposit activity, and redeemed $130.6 million of brokered deposits. Confirmed
2. Watch whether management provides more detail on the strategic update, such as further balance sheet reduction plans or targets for capital ratios and classified assets. Proposed
3. Track future earnings excluding the $17.6 million pre-tax gain, because a repeat of sale-driven profit is unlikely and core revenue and costs will show the underlying trend. Analyst inference

Evidence

• globenewswire.com