Earnings release
Page 1
EXHIBIT 99.1 OCTOBER 27, 2026 NEWS FOR IMMEDIATE RELEASE CONTACT: ERIC J. DOSCH, CFO 985.375.0308 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.
Page 2
• 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.
Page 3
• 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. Forward Looking Statements This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended with respect to the financial condition, liquidity, results of operations, and future performance of the business of First Guaranty Bancshares, Inc. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond our control). Forward- looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” We caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. These forward-looking statements are subject to a number of factors and uncertainties, including, without limitation, the time, resources and strategic changes necessary to adopt and implement all corrective actions required by the Consent Order, the “Risk Factors” referenced in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, and other risks and uncertainties listed from time to time in our reports and documents filed with the Securities and Exchange Commission. We undertake no obligation to publicly update any forward- looking statement, whether as a result of new information, future events or otherwise. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. No Offer or Solicitation This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of First Guaranty. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Page 4
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except share data) September 30, 2026 December 31, 2025 Assets Cash and cash equivalents: Cash and due from banks $ 292,226 $ 845,150 Federal funds sold 544 551 Cash and cash equivalents 292,770 845,701 Interest-earning time deposits with banks 500 250 Investment securities: Available for sale, at fair value (cost of $875,612 and $674,139 respectively) 838,305 676,592 Held to maturity, at cost and net of allowance for credit losses of $150 (estimated fair value of$250,422 and $268,094 respectively) 323,466 322,675 Investment securities 1,161,771 999,267 Federal Home Loan Bank stock, at cost 10,544 10,206 Loans, net of unearned income 1,581,005 2,069,802 Less: allowance for credit losses 36,400 40,755 Net loans 1,544,605 2,029,047 Premises and equipment, net 61,458 59,585 Intangible assets, net 1,400 2,638 Other real estate, net 27,950 35,084 Accrued interest receivable 12,904 12,455 Other assets 38,583 84,088 Total Assets $ 3,152,485 $ 4,078,321 Liabilities and Shareholders' Equity Deposits: Noninterest-bearing demand $ 368,328 $ 414,604 Interest-bearing demand 807,107 1,165,061 Savings 224,556 213,936 Time 1,454,983 1,839,276 Total deposits 2,854,974 3,632,877 Repurchase agreements 7,227 7,119 Accrued interest payable 19,729 17,637 Long-term advances from Federal Home Loan Bank — 135,000 Senior long-term debt 14,217 14,203 Junior subordinated debentures 29,850 29,805 Other liabilities 7,543 15,462 Total Liabilities 2,933,540 3,852,103 Shareholders' Equity Preferred stock, Series A - $1,000 par value - 100,000 shares authorized Non-cumulative perpetual; 34,500 issued and outstanding 33,058 33,058 Common stock, $1 par value - 100,600,000 shares authorized; 16,638,371 and 15,793,433 sharesissued and outstanding 16,638 15,793 Surplus 177,215 170,621 Retained earnings 29,947 14,055 Accumulated other comprehensive (loss) income (37,913) (7,309) Total Shareholders' Equity 218,945 226,218 Total Liabilities and Shareholders' Equity $ 3,152,485 $ 4,078,321 See Notes to Consolidated Financial Statements
Page 6
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (unaudited) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, (in thousands, except share data) 2026 2025 2026 2025 Interest Income: Loans (including fees) $ 27,423 $ 39,325 $ 93,792 $ 123,307 Deposits with other banks 4,650 7,777 19,360 21,287 Securities (including FHLB stock) 11,797 6,398 34,274 17,690 Total Interest Income 43,870 53,500 147,426 162,284 Interest Expense: Demand deposits 7,114 13,185 24,965 38,097 Savings deposits 1,034 1,058 2,943 3,656 Time deposits 15,850 14,519 51,844 45,605 Borrowings 2,221 2,500 7,056 8,225 Total Interest Expense 26,219 31,262 86,808 95,583 Net Interest Income 17,651 22,238 60,618 66,701 Less: Provision for credit losses 3,753 47,933 9,003 79,091 Net Interest Income (Loss) after Provision for Credit Losses 13,898 (25,695) 51,615 (12,390) Noninterest Income: Service charges, commissions and fees 700 832 2,194 2,515 ATM and debit card fees 642 741 1,939 2,266 Net gains on securities — — 1 — Net gains (losses) on sale of assets 1,716 (366) 1,760 (362) Net gains on sale of branches 16,137 — 16,137 — Other 622 653 1,893 1,951 Total Noninterest Income 19,817 1,860 23,924 6,370 Total Business Revenue (Loss), Net of Provision for Credit Losses 33,715 (23,835) 75,539 (6,020) Noninterest Expense: Salaries and employee benefits 7,026 7,465 21,407 23,749 Occupancy and equipment expense 2,113 2,605 6,938 7,850 Goodwill impairment — 12,900 — 12,900 Other 9,725 7,205 24,456 20,960 Total Noninterest Expense 18,864 30,175 52,801 65,459 Income (Loss) Before Income Taxes 14,851 (54,010) 22,738 (71,479) Provision (benefit) for income taxes 2,899 (9,007) 4,612 (13,007) Net Income (Loss) 11,952 (45,003) 18,126 (58,472) Less: Preferred stock dividends 582 582 1,746 1,746 Net Income (Loss) Available to Common Shareholders $ 11,370 $ (45,585)$ 16,380 $ (60,218) Per Common Share: Earnings (Loss) $ 0.69 $ (3.01)$ 1.01 $ (4.45) Cash dividends paid $ 0.01 $ 0.01 $ 0.03 $ 0.03 Weighted Average Common Shares Outstanding 16,540,173 15,122,702 16,223,484 13,523,009 See Notes to Consolidated Financial Statements
Page 7
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) Three Months Ended September 30, 2026 Three Months Ended September 30, 2025 (in thousands except for %) AverageBalance Interest Yield/Rate (5) AverageBalance Interest Yield/Rate (5) Assets Interest-earning assets: Interest-earning deposits with banks$ 499,438 $ 4,650 3.69 % $ 697,288 $ 7,777 4.42 % Securities (including FHLB stock) 1,201,873 11,797 3.89 % 722,380 6,398 3.51 % Federal funds sold 545 — — % 556 — — % Loans held for sale — — — % — — — % Loans, net of unearned income (6) 1,660,955 27,423 6.55 % 2,346,551 39,325 6.65 % Total interest-earning assets 3,362,811 $ 43,870 5.18 % 3,766,775 $ 53,500 5.63 % Noninterest-earning assets: Cash and due from banks 22,023 21,031 Premises and equipment, net 65,165 65,039 Other assets 39,742 19,419 Total Assets $ 3,489,741 $ 3,872,264 Liabilities and Shareholders' Equity Interest-bearing liabilities: Demand deposits $ 898,027 $ 7,114 3.14 % $ 1,399,102 $ 13,185 3.74 % Savings deposits 224,474 1,034 1.83 % 213,383 1,058 1.97 % Time deposits 1,599,970 15,850 3.93 % 1,362,955 14,519 4.23 % Borrowings 121,989 2,221 7.22 % 186,087 2,500 5.33 % Total interest-bearing liabilities 2,844,460 $ 26,219 3.66 % 3,161,527 $ 31,262 3.92 % Noninterest-bearing liabilities: Demand deposits 385,779 405,479 Other 28,042 41,541 Total Liabilities 3,258,281 3,608,547 Shareholders' equity 231,460 263,717 Total Liabilities and Shareholders'Equity $ 3,489,741 $ 3,872,264 Net interest income $ 17,651 $ 22,238 Net interest rate spread (1) 1.52 % 1.71 % Net interest-earning assets (2) $ 518,351 $ 605,248 Net interest margin (3), (4), (8) 2.08 % 2.34 % Average interest-earning assets tointerest-bearing liabilities 118.22 % 119.14 % (1) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. (2) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. (4) The tax adjusted net interest margin was 2.10% and 2.35% for the above periods ended September 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 September 30, 2026 and 2025 respectively. (5) Annualized. (6) Includes loan fees of $0.9 million and $1.0 million for the three months ended September 30, 2026 and 2025, respectively. (7) Includes FHLB prepayment penalty of $0.5 million that resulted in 164 basis points of increased expense for the three months ended September 30, 2026. (8) The adjusted net interest margin excluding the prepayment penalty was 2.14% for the three months ended September 30, 2026. (7)
Page 8
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) Nine Months Ended September 30, 2026 Nine Months Ended September 30, 2025 (in thousands except for %) AverageBalance Interest Yield/Rate (5) AverageBalance Interest Yield/Rate (5) Assets Interest-earning assets: Interest-earning deposits with banks$ 699,096 $ 19,360 3.70 % $ 640,961 $ 21,287 4.44 % Securities (including FHLB stock) 1,183,465 34,274 3.87 % 683,930 17,690 3.46 % Federal funds sold 546 — — % 534 — — % Loans held for sale — — — % 1,131 — — % Loans, net of unearned income (6) 1,843,441 93,792 6.80 % 2,476,128 123,307 6.66 % Total interest-earning assets 3,726,548 $ 147,426 5.29 % 3,802,684 $ 162,284 5.71 % Noninterest-earning assets: Cash and due from banks 23,606 20,691 Premises and equipment, net 64,222 66,041 Other assets 44,177 24,342 Total Assets $ 3,858,553 $ 3,913,758 Liabilities and Shareholders' Equity Interest-bearing liabilities: Demand deposits $ 1,062,414 $ 24,965 3.14 % $ 1,380,225 $ 38,097 3.69 % Savings deposits 219,699 2,943 1.79 % 231,206 3,656 2.11 % Time deposits 1,744,508 51,844 3.97 % 1,403,370 45,605 4.34 % Borrowings 164,661 7,056 5.73 % 196,267 8,225 5.60 % Total interest-bearing liabilities 3,191,282 $ 86,808 3.64 % 3,211,068 $ 95,583 3.98 % Noninterest-bearing liabilities: Demand deposits 406,474 404,640 Other 32,960 40,306 Total Liabilities 3,630,716 3,656,014 Shareholders' equity 227,837 257,744 Total Liabilities and Shareholders'Equity $ 3,858,553 $ 3,913,758 Net interest income $ 60,618 $ 66,701 Net interest rate spread (1) 1.65 % 1.73 % Net interest-earning assets (2) $ 535,266 $ 591,616 Net interest margin (3), (4) 2.17 % 2.35 % Average interest-earning assets tointerest-bearing liabilities 116.77 % 118.42 % (1) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. (2) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. (4) The tax adjusted net interest margin was 2.19% and 2.35% for the above periods ended September 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 September 30, 2026 and 2025 respectively. (5) Annualized. (6) Includes loan fees of $3.7 million and $3.9 million for the nine months ended September 30, 2026 and 2025, respectively.
Page 9
The following table summarizes the components of First Guaranty's loan portfolio as of September 30, 2026, June 30, 2026, March 31, 2026, and December 31, 2025: September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 (in thousands except for%) Balance As % ofCategory Balance As % ofCategory Balance As % ofCategory Balance As % ofCategory Real Estate: Construction & landdevelopment $ 65,954 4.2 % $ 99,000 5.6 % $ 109,758 5.7 % $ 149,493 7.2 % Farmland 30,444 1.9 % 30,878 1.7 % 31,377 1.6 % 32,160 1.5 % 1- 4 Family 388,632 24.5 % 420,388 23.8 % 427,518 22.2 % 428,773 20.7 % Multifamily 72,475 4.6 % 85,772 4.8 % 127,973 6.6 % 144,235 6.9 % Non-farm non-residential 681,905 43.0 % 790,300 44.7 % 879,022 45.5 % 948,536 45.7 % Total Real Estate 1,239,410 78.2 % 1,426,338 80.6 % 1,575,648 81.6 % 1,703,197 82.0 % Non-Real Estate: Agricultural 45,524 2.9 % 42,860 2.4 % 37,899 2.0 % 35,244 1.7 % Commercial andindustrial 211,994 13.4 % 222,627 12.6 % 214,368 11.1 % 228,738 11.0 % Commercial leases 50,996 3.2 % 56,619 3.2 % 71,110 3.7 % 75,617 3.7 % Consumer and other 37,026 2.3 % 21,223 1.2 % 31,070 1.6 % 33,023 1.6 % Total Non-Real Estate 345,540 21.8 % 343,329 19.4 % 354,447 18.4 % 372,622 18.0 % Total loans beforeunearned income 1,584,950 100.0 % 1,769,667 100.0 % 1,930,095 100.0 % 2,075,819 100.0 % Unearned income (3,945) (4,457) (5,518) (6,017) Total loans net ofunearned income $ 1,581,005 $ 1,765,210 $ 1,924,577 $ 2,069,802
Page 10
The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated.
Page 11
(in thousands) September 30,2026 June 30, 2026 March 31, 2026 December 31,2025 Nonaccrual loans: Real Estate: Construction and land development $ 19,060 $ 18,823 $ 9,466 $ 9,281 Farmland 2,409 2,595 2,633 2,671 1- 4 family 8,005 7,593 8,865 9,768 Multifamily 6,699 2,215 2,231 2,278 Non-farm non-residential 5,250 7,064 21,789 24,347 Total Real Estate 41,423 38,290 44,984 48,345 Non-Real Estate: Agricultural 1,466 1,436 1,645 2,172 Commercial and industrial 919 841 1,224 2,266 Commercial leases — — 6,483 6,640 Consumer and other 16 27 73 158 Total Non-Real Estate 2,401 2,304 9,425 11,236 Total nonaccrual loans 43,824 40,594 54,409 59,581 Loans 90 days and greater delinquent & accruing: Real Estate: Construction and land development — — — — Farmland — — — — 1- 4 family 161 — 107 763 Multifamily — — — — Non-farm non-residential — — 123 33 Total Real Estate 161 — 230 796 Non-Real Estate: Agricultural — — — — Commercial and industrial — — — — Commercial leases — — — — Consumer and other — — — — Total Non-Real Estate — — — — Total loans 90 days and greater delinquent & accruing 161 — 230 796 Total non-performing loans 43,985 40,594 54,639 60,377 Real Estate Owned: Real Estate Loans: Construction and land development 925 1,161 1,161 8,161 Farmland — — — — 1- 4 family 731 897 851 351 Multifamily — — — — Non-farm non-residential 26,294 27,663 26,860 26,572 Total Real Estate 27,950 29,721 28,872 35,084 Non-Real Estate Loans: Agricultural — — — — Commercial and industrial — — — — Commercial leases — — — — Consumer and other — — — — Total Non-Real Estate — — — — Total Real Estate Owned 27,950 29,721 28,872 35,084 Total non-performing assets $ 71,935 $ 70,315 $ 83,511 $ 95,461 Non-performing assets to total loans 4.55 % 3.98 % 4.34 % 4.61 % Non-performing assets to total assets 2.28 % 1.81 % 2.11 % 2.34 % Non-performing loans to total loans 2.78 % 2.30 % 2.84 % 2.92 % Nonaccrual loans to total loans 2.77 % 2.30 % 2.83 % 2.88 % Allowance for credit losses to nonaccrual loans 83.06 % 84.49 % 70.74 % 68.40 % Net loan charge-offs to average loans 0.98 % 1.22 % 0.99 % 3.17 %
Page 13
The table below lists the Top 10 Nonperforming Assets at September 30, 2026. Top 10 Non-Performing Assets Balance Allocated ReserveOrigination Year Location Asset Description 1 Independent Living Center OREO $ 22,574 $ — 2021 Louisiana 2 Assisted Living Center 11,394 — 2023-2025 Texas 3 Commercial Land Development 7,535 — 2023 Texas 4 Apartment Complex 5,154 767 2023 Louisiana 5 Apartment Complex 4,500 833 2022 Texas 6 Farmland 2,391 — 2020 Louisiana 7 Commercial Building 1,133 — 2023 West Virginia 8 Hotel 972 — 2016 Louisiana 9 Commercial Real Estate 935 — 2017 Texas 10 Retail Strip Center 833 253 2016 Louisiana $ 57,421 $ 1,853 *Excludes bank owned properties previously used as either operating branches or future branch development The table below provides a status update as of September 30, 2026 on the previously reported Top 10 Nonperforming Assets in second quarter 2026. Top 10 Nonperforming Assets June 30, 2026 September 30, 2026 Balance Allocated Reserve Location Status Asset Description 1 Independent Living Center OREO $ 23,301 $ — Louisiana Remains in OREO 2 Assisted Living Center 10,789 — Texas Remains Nonaccrual 3 Commercial Land Development 7,723 73 Texas Remains Nonaccrual 4 Apartment Complex 5,181 794 Louisiana Remains Nonaccrual 5 Farmland 2,391 — Louisiana Remains Nonaccrual 6 Hotel 1,522 550 Louisiana Remains Nonaccrual /Partially Charged Off 7 Commercial Building 1,175 — West Virginia Remains Nonaccrual 8 Commercial Real Estate 965 — Texas Remains Nonaccrual 9 Retail Strip Center 833 5 Louisiana Remains Nonaccrual 10 Mobile Home Park OREO 831 — New Mexico Remains in OREO $ 54,711 $ 1,422 *Excludes bank owned properties previously used as either operating branches or future branch development
Page 14
The tables below list the top 10 special mention and substandard relationships as of September 30, 2026. Top 10 Special Mention Relationships Balance Allocated Reserve OriginationYear(s) Location Relationship Description 1 Assisted Living Facility $ 33,467 $ — 2022 Alabama 2 Warehouse Facility 16,040 — 2011 Louisiana &Tennessee 3 Recreational Park 15,399 — 2020 Louisiana 4 Hotel Property 14,458 — 2023 Florida 5 Multipurpose Commercial Real Estate Building 7,211 — 2021 Texas 6 Multifamily 4,893 — 2022 Florida 7 Hotel Property 4,585 — 2023 Georgia 8 Construction of Resort/Condos 4,060 — 2022 West Virginia 9 Multi Tenant Office Building 3,719 — 2022 California 10 Residential Real Estate Developer 3,278 — 2020-2022 Louisiana $ 107,110 $ — Top 10 Substandard Relationships Balance Allocated Reserve OriginationYear(s) Location Relationship Description 1 Medical Facilities $ 45,035 $ — 2008-2022 Louisiana 2 Manufacturing Company 33,672 — 2015-2024 Louisiana 3 Owner Occupied Office Building 30,227 — 2023 Utah 4 Commercial Retail Shopping Center 13,080 — 2020-2022 Oklahoma 5 Food Processor 11,999 — 2022-2024 Ohio 6 Assisted Living Facility 11,394 — 2023-2025 Texas 7 Gas Station & Convenience Store 11,370 — 2023 Louisiana 8 Commercial Land Development 7,535 — 2023 Texas 9 Timber & Logging 6,914 — 2022-2024 Louisiana 10 Real Estate Properties 6,204 — 2021-2024 Louisiana $ 177,430 $ —
Page 15
The following table presents, for the periods indicated, the major categories of other noninterest expense: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2026 2025 2026 2025 Other noninterest expense: Legal and professional fees $ 806 $ 988 $ 2,286 $ 2,747 Data processing 335 336 1,025 1,022 ATM fees 378 390 1,080 1,242 Marketing and public relations 182 151 593 555 Taxes - sales, capital, and franchise 518 542 1,552 1,585 Operating supplies 40 66 151 152 Software expense and amortization 1,160 1,211 3,569 3,615 Travel and lodging 97 88 279 286 Telephone 116 88 302 283 Amortization of core deposit intangibles 794 174 1,142 522 Donations 57 51 210 191 Net costs from other real estate and repossessions 2,047 13 2,945 87 Regulatory assessment 1,692 1,777 5,308 4,930 Other 1,503 1,330 4,014 3,743 Total other noninterest expense $ 9,725 $ 7,205 $ 24,456 $ 20,960 The following table presents, for the periods indicated, the major categories of other noninterest expense: Three MonthsEnded September30, Three MonthsEnded June 30, Three MonthsEnded March 31, Three MonthsEnded December31, (in thousands) 2026 2026 2026 2025 Other noninterest expense: Legal and professional fees $ 806 $ 787 $ 693 $ 665 Data processing 335 365 325 331 ATM fees 378 344 358 432 Marketing and public relations 182 189 222 174 Taxes - sales, capital, and franchise 518 518 516 237 Operating supplies 40 39 72 48 Software expense and amortization 1,160 1,237 1,172 1,289 Travel and lodging 97 127 55 133 Telephone 116 92 94 91 Amortization of core deposit intangibles 794 174 174 174 Donations 57 86 67 33 Net costs from other real estate and repossessions 2,047 530 368 815 Regulatory assessment 1,692 1,808 1,808 1,778 Other 1,503 1,522 989 1,437 Total other noninterest expense $ 9,725 $ 7,818 $ 6,913 $ 7,637
Page 16
Non-GAAP Financial Measures Our accounting and reporting policies conform to accounting principles generally accepted in the United States, or GAAP, and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional metrics. Tangible book value per share and the ratio of tangible equity to tangible assets are not financial measures recognized under GAAP and, therefore, are considered non-GAAP financial measures. Our management, banking regulators, many financial analysts and other investors use these non-GAAP financial measures to compare the capital adequacy of banking organizations with significant amounts of preferred equity and/or goodwill or other intangible assets, which typically stem from the use of the purchase accounting method of accounting for mergers and acquisitions. Tangible equity, tangible assets, tangible book value per share or related measures should not be considered in isolation or as a substitute for total shareholders' equity, total assets, book value per share or any other measure calculated in accordance with GAAP. Moreover, the manner in which we calculate tangible equity, tangible assets, tangible book value per share and any other related measures may differ from that of other companies reporting measures with similar names. The following table reconciles, as of the dates set forth below, shareholders' equity (on a GAAP basis) to tangible equity and total assets (on a GAAP basis) to tangible assets and calculates our tangible book value per share. At September 30, At December 31, (in thousands except for share data and%) 2026 2025 2024 2023 2022 Tangible Common Equity Total shareholders' equity $ 218,945 $ 226,218 $ 255,049 $ 249,631 $ 234,991 Adjustments: Preferred 33,058 33,058 33,058 33,058 33,058 Goodwill — — 12,900 12,900 12,900 Acquisition intangibles 1,124 2,266 2,962 3,658 4,355 Other intangibles 100 100 100 100 — Tangible common equity $ 184,663 $ 190,794 $ 206,029 $ 199,915 $ 184,678 Common shares outstanding 16,638,371 15,793,433 12,504,717 12,475,424 10,716,796 Book value per common share $ 11.17 $ 12.23 $ 17.75 $ 17.36 $ 18.84 Tangible book value per commonshare $ 11.10 $ 12.08 $ 16.48 $ 16.03 $ 17.23 Tangible Assets Total Assets $ 3,152,485 $ 4,078,321 $ 3,972,728 $ 3,552,772 $ 3,151,347 Adjustments: Goodwill — — 12,900 12,900 12,900 Acquisition intangibles 1,124 2,266 2,962 3,658 4,355 Other intangibles 100 100 100 100 — Tangible Assets $ 3,151,261 $ 4,075,955 $ 3,956,766 $ 3,536,114 $ 3,134,092 Tangible common equity to tangibleassets 5.86 % 4.68 % 5.21 % 5.65 % 5.89 %
Page 18
Regulatory Capital Risk-based capital regulations adopted by the FDIC require banks to achieve and maintain specified ratios of capital to risk-weighted assets. Similar capital regulations apply to bank holding companies over $3.0 billion in assets. The risk-based capital rules are designed to measure "Tier 1" capital (consisting of common equity, retained earnings and a limited amount of qualifying perpetual preferred stock and trust preferred securities, net of goodwill and other intangible assets and accumulated other comprehensive income) and total capital in relation to the credit risk of both on- and off- balance sheet items. Under the guidelines, one of its risk weights is applied to the different on-balance sheet items. Off-balance sheet items, such as loan commitments, are also subject to risk weighting. Applicable bank holding companies and all banks must maintain a minimum total capital to total risk weighted assets ratio of 8.00%, at least half of which must be in the form of core or Tier 1 capital. These guidelines also specify that bank holding companies that are experiencing internal growth or making acquisitions will be expected to maintain capital positions substantially above the minimum supervisory levels. In order to avoid limitations on distributions, including dividend payments, and certain discretionary bonus payments to executive officers, an institution must hold a capital conservation buffer above its minimum risk-based capital requirements. As of September 30, 2026, the Bank's capital conservation buffer was 10.79% exceeding the minimum of 2.50%. As of September 30, 2026, First Guaranty's capital conservation buffer was 8.91% exceeding the minimum of 2.50%. As a result of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the Federal Reserve Board has amended its small bank holding company and savings and loan holding company policy statement to provide that holding companies with consolidated assets of less than $3 billion that are (i) not engaged in significant nonbanking activities, (ii) do not conduct significant off-balance sheet activities, and (iii) do not have a material amount of SEC-registered debt or equity securities, other than trust preferred securities, that contribute to an organization's complexity, are no longer subject to regulatory capital requirements, effective August 30, 2018. On January 1, 2024, First Guaranty ceased being considered a "small bank holding company". Accordingly, both the Bank and First Guaranty are required to maintain specified ratios of capital to risk-weighted assets. In addition, as a result of the legislation, the federal banking agencies have developed a "Community Bank Leverage Ratio" (the ratio of a bank's Tier 1 capital to average total consolidated assets) for financial institutions with assets of less than $10 billion. A "qualifying community bank" that exceeds this ratio will be deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered "well capitalized" under Prompt Corrective Action statutes. The federal banking agencies may consider a financial institution's risk profile when evaluating whether it qualifies as a community bank for purposes of the capital ratio requirement. In April 2026, the federal banking agencies finalized a rule lowering the Community Bank Leverage Ratio to 8%, effective July 1, 2026. As of September 30, 2026, the Bank has not elected to follow the Community Bank Leverage Ratio. At September 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. "Well Capitalized Minimums"As of September 30, 2026 As of December 31, 2025 Tier 1 Leverage Ratio Bank 5.00% 8.29% 6.90% Consolidated N/A 7.30% 5.93% Tier 1 Risk-based Capital Ratio Bank 8.00% 17.53% 12.24% Consolidated 6.00% 15.41% 10.52% Total Risk-based Capital Ratio Bank 10.00% 18.79% 13.48% Consolidated 10.00% 18.48% 13.12% Common Equity Tier One Capital Ratio Bank 6.50% 17.53% 12.24% Consolidated N/A 13.42% 9.03%