New York, June 1, 2026, 04:13 EDT
- First Guaranty Bancshares closed at $9.56 on Friday, falling 5.25%. That was before Monday’s regular session on Nasdaq.
- First-quarter profit at the bank was up, though credit quality and the planned exit from Texas are still the key issues for the stock.
- Peer regional-bank stocks traded mixed. FGBI was the outlier, falling.
First Guaranty Bancshares Inc. heads into Monday in the red after a rough Friday, with shares closing at $9.56, down 5.25%. The Louisiana bank’s Nasdaq-listed shares ended May 29 right at the low end of their $9.56-to-$10.12 range. Roughly 34,152 shares traded. Investors are still watching the unfinished credit cleanup.
Nasdaq is set to start regular trading again at 9:30 a.m. Eastern. Monday isn’t a U.S. equity-market holiday. In thinly traded stocks, a little selling can move prices more sharply than in a large-cap bank.
The stock is trading far above its 52-week low at $4.31, though it dropped Friday from its recent 52-week high of $10.36. Market cap sits near $153 million, which is on the small side for regional banks.
First Guaranty is working on fixing its business more than growing it right now. The bank posted first-quarter net income of $2.7 million, swinging from a $6.2 million loss a year ago. Earnings came in at 14 cents a share. Net interest margin slipped, down to 2.07% from 2.35% last year.
Chief Executive Michael R. Mineer told investors in April the bank was still working on “reducing non-performing assets” and getting capital ratios higher. Non-performing assets are loans and property that aren’t bringing in expected payments. SEC
First Guaranty’s non-performing assets dropped to $83.5 million at March 31 from $95.5 million at the end of December, but the bad-loan book hasn’t disappeared. The 10 biggest non-performing relationships still accounted for 77% of non-performing assets. Charge-offs reached $5.4 million in the first quarter.
The bank is getting smaller. Loans dropped $145.2 million, or 7.0%, since year-end to $1.9 billion. Deposits were down too, off $125.3 million, or 3.4%, to $3.5 billion. Pulling back on lending can lower risk, but means less room to earn if the loan book keeps shrinking.
First Guaranty is selling its Texas operations to Armstrong Bank, based in Muskogee, Oklahoma. The deal includes five branches, around $270 million in deposits and $110 million in loans. Closing is set for the third quarter of 2026, pending conditions. Mineer said in March the deal “reinforces First Guaranty’s capital position.” SEC
Investors approved all management proposals at the annual meeting. A filing dated May 22 showed all seven directors won election, executive pay passed on an advisory vote, and EisnerAmper LLP was ratified as auditor for 2026.
FGBI underperformed the regional-bank group this session. The SPDR S&P Regional Banking ETF ticked up 0.1%. Among Louisiana banks, Red River Bancshares dropped 1.7%, Business First Bancshares gained 0.9%, Investar Holding was off 0.2%.
But repair trades carry their own risks. If borrowers get worse or collateral sales come up short, or if deposit costs remain elevated, First Guaranty could end up with capital stuck in reserves instead of putting it into new loans. That’s why investors are expected to keep watching credit metrics, even as the bank moves back to posting a quarterly profit.
The stock has fallen again with the outlook for 2025 looking tougher. In October, Reuters said First Guaranty posted a quarterly loss after it took charges on exposure to an auto-parts maker bankruptcy. That case raised more worry about credit risk at U.S. banks.
