First Guaranty Sells Five Texas Branches with About $234 Million in Deposits

Key Facts

First Guaranty Bank completed the sale of its Texas operations to Armstrong Bank on July 31, 2026, in a transaction covering five branches and related deposits, loans and other assets. According to the company’s filing with the U.S. Securities and Exchange Commission, deposits sold totaled about $234 million, while loans totaled about $88 million. These figures indicate the scale of the business transferred to the buyer when the transaction closed. The company had previously disclosed that the sale was completed on that date. The available filing does not establish the transaction’s financial impact on third-quarter results.

The divestiture followed an improvement in First Guaranty’s results in the first half of 2026. Net income was $6.2 million, compared with a loss of $13.5 million in the same period of 2025, an increase of $19.6 million, according to the earnings release attached to the company’s filing. In the second quarter alone, the company reported net income of $3.4 million, after posting a loss of $7.3 million in the same quarter a year earlier. Earnings per common share were $0.17 in the second quarter, compared with a loss of $0.61 per share a year earlier. The company attributed the improvement in quarterly net income primarily to a lower provision for credit losses than in the comparable period.

First-half results also coincided with an improvement in one measure of asset quality: nonperforming loans fell to $40.6 million on June 30, 2026, from $59.6 million on December 31, 2025. The filing indicates a decline of $19 million over six months. But the provision for credit losses in the third quarter of 2025 underscores the scale of pressure the bank faced in the earlier period. The provision was $47.9 million, of which the company linked $39.8 million to a single commercial lease financing relationship. These figures provide context for the credit risks that accompanied the subsequent improvement in results.

On capital, the company said the bank reported a total risk-based capital ratio of 16.21% on June 30, 2026, alongside a Tier 1 leverage ratio of 7.09%. The filing also noted a regulatory consent order that requires specified capital levels and restricts the bank’s distributions to the parent company. The order took effect on August 7, 2026, and requires the bank to submit quarterly progress reports to regulators. These restrictions set the regulatory framework for the bank’s operations after the branch sale, while the information provided does not detail any change in capital following the transaction’s completion. The available figures also do not include a documented third-quarter financial result or a year-over-year comparison for that quarter.