First Guaranty Bancshares, Inc. (NASDAQ: FGBI) announced its unaudited financial results for the third quarter and nine months ended September 30, 2026. The company reported net income of $12.0 million for the three months ended September 30, 2026, a significant improvement compared to a net loss of $(45.0) million in the same period in 2025. For the nine months ended September 30, 2026, net income totaled $18.1 million, representing an increase of $76.6 million compared to the prior year period.
The filing details that the company's strategy to comply with a Consent Order issued by the FDIC and OFI on August 7, 2026, has driven these results. Key actions taken during the third quarter include the sale of the bank's Texas operations to Armstrong Bank on July 31, 2026. The transaction included five branches, approximately $234 million in deposits, and $88 million in loans. The company estimates the sale contributed approximately $17.6 million to pre-tax income.
Financial metrics at September 30, 2026, show total assets decreased to $3.2 billion, down from $4.1 billion at December 31, 2025. Total loans were $1.6 billion, a decrease of $488.8 million, or 23.6%, compared to the end of 2025. Total deposits stood at $2.9 billion, a decrease of $777.9 million, or 21.4%, year-over-year. Shareholders' equity was $218.9 million as of September 30, 2026.
The company also noted progress in reducing non-performing assets. Nonaccrual loans decreased to $43.8 million, and substandard assets declined by $31.2 million during the quarter. The company signed agreements to sell its largest non-performing asset, a $22.6 million loan secured by an independent living center, and its second largest non-performing asset, an $11.4 million loan secured by an assisted living center, with both transactions expected to close in the fourth quarter of 2026.
Other operating details include a net interest margin of 2.08% for the third quarter of 2026, compared to 2.34% in the prior year. The provision for credit losses was $3.8 million for the quarter, down from $47.9 million in the same period in 2025. The company declared cash dividends of $0.01 per common share for the third quarter of 2026, marking 133 consecutive quarterly dividend payments.
