First Guaranty Bancshares (FGBI) investor relations material

Executive summary

• Net income for Q2 2026 was $3.4M, a turnaround from a $7.3M loss in Q2 2025; six-month net income was $6.2M, up from a $13.5M loss year-over-year.

• Total assets decreased to $3.9B from $4.1B at year-end 2025, driven by a $304.6M decline in loans and a $64.1M drop in cash, partially offset by a $214.7M increase in investment securities.

• The company completed the sale of its Texas operations on July 31, 2026, transferring $234M in deposits and $88M in loans.

• A Consent Order with the FDIC and Louisiana OFI was issued in August 2026, imposing capital and operational restrictions.

• Earnings per share for Q2 2026 were $0.17, compared to a loss of $0.61 per share in Q2 2025.

Financial highlights

• Net interest income for Q2 2026 was $22.3M, nearly flat year-over-year; six-month net interest income was $43.0M, down from $44.5M.

• Provision for credit losses dropped sharply to $2.6M in Q2 2026 from $16.6M in Q2 2025; six-month provision was $5.3M, down from $31.2M.

• Noninterest expense for Q2 2026 was $17.2M, nearly unchanged from Q2 2025.

• Book value per common share was $11.75 at June 30, 2026, down from $12.23 at year-end 2025.

• Charge-offs rose to $7.7M in Q2 2026 from $1.1M in Q2 2025; recoveries increased to $0.9M from $0.2M.

Outlook and guidance

• Management is focused on compliance with the Consent Order, including capital ratio targets and enhanced credit administration.

• The company expects continued operational and compliance costs related to regulatory requirements.

• The sale of Texas operations is expected to further reduce risk and streamline the balance sheet.

• Forward-looking statements caution on risks and uncertainties affecting future performance.

• Sale of Texas operations (five branches, $227M in deposits, $93M in loans) to Armstrong Bank expected to close July 31, 2026.