First Guaranty Bancshares Enters FDIC/OFI Consent Order (Aug 7, 2026)

What Happened
First Guaranty Bancshares, Inc. (via its wholly owned bank, First Guaranty Bank) filed an 8‑K reporting that the Bank consented to a Consent Order issued by the Federal Deposit Insurance Corporation (FDIC) and the Louisiana Office of Financial Institutions (OFI), effective August 7, 2026. The Consent Order stems from a joint FDIC/OFI examination conducted September 2, 2025. The Bank consented without admitting or denying charges and has been taking steps to address the exam findings; a copy of the Consent Order is attached to the filing.

Key Details

• Capital requirements: Bank must maintain a Tier 1 leverage ratio ≥ 9.0% and a total risk‑based capital ratio ≥ 14.0%. As of June 30, 2026 the Bank’s Tier 1 leverage was 7.09% and total risk‑based capital was 16.21%; the Bank has submitted a capital plan to regulators.
• Classified asset actions: Within 120 days the Bank must charge off or collect all assets classified “loss” and 50% of assets classified “doubtful” from the 2025 exam; within 60 days it must submit a plan to reduce remaining “doubtful” and “substandard” assets (with extra detail for balances ≥ $2M).
• Credit, CRE, and governance controls: The order requires strengthened board oversight, improved credit administration and loan documentation, a loan review program, a CRE concentration plan and corrected CRE stress‑testing within 90 days, and quarterly progress reports to regulators.
• Dividend and lending restrictions: While the order is in effect, the Bank may not pay dividends to First Guaranty without FDIC/OFI written consent and faces restrictions on extending credit to certain charged‑off, “loss,” “doubtful,” or “substandard” borrowers.

Why It Matters
The Consent Order imposes concrete capital and operational requirements that can affect capital planning, dividend payments, and lending activity. Investors should note the immediate capital shortfall relative to the Tier 1 leverage requirement (7.09% vs. required 9.0%) and the Bank’s submitted capital plan; otherwise management reports it is in compliance with the Order as of the filing date. The Order will remain effective until the regulators modify or lift it, and ongoing progress reports and remediation actions will be material to the company’s financial flexibility and risk profile.