First Guaranty Bancshares Faces $52M Loan Hit, Charts Recovery at Annual Meeting

First Guaranty Bancshares (NASDAQ:FGBI) held its 2026 annual shareholder meeting in a hybrid format, with President and CEO Michael Mineer presiding and Chairman Marshall Reynolds addressing shareholders on what he described as a difficult year for the company.

Reynolds said the bank faced a significant earnings setback after charging off a single $52 million loan. “To put that in perspective, the best year First Guaranty Bank ever had was $25 million,” Reynolds said. “In one fell swoop, we charged off our earnings for two years.” He added that while the issue would be difficult to work through, the bank expects to do so.

Mineer also opened the formal meeting by recognizing the late William K. Hood, a longtime director of First Guaranty Bank. Mineer said Hood served the bank for 48 years and helped guide the institution through growth and transformation. “His legacy endures in the culture he helped build and the countless lives he influenced,” Mineer said.

Shareholders Vote in Favor of Proposals

During the meeting, Mineer introduced the nominees for the board of directors and outlined the proposals on the ballot. The director nominees were Betsy K. Hood, Marshall T. Reynolds, Jack Rossi, Bruce McAnally, Edgar R. Smith III, Vanessa R. Drew and Robert W. Walker.

The other items included an advisory, non-binding resolution on executive compensation and the ratification of EisnerAmper LLP as the company’s independent registered public accounting firm for the year ending Dec. 31, 2026. ClearTrust served as inspector of elections.

Michelle Acapulco of ClearTrust reported that a quorum was present and that at least 51% of the outstanding common shares entitled to vote had been cast in favor of all proposals.

Management Highlights Strategy and Recent Results

Mineer provided a brief update on the company’s strategy, saying First Guaranty would manage its balance sheet based on shareholder-provided capital while continuing expense reductions and strengthening risk oversight. He specifically cited expanded balance sheet risk management and enhanced credit risk management as priorities.

Mineer said the company reported first-quarter earnings per share of $0.14. He also said First Guaranty reduced non-interest expense by $1.3 million in the first quarter compared with the first quarter of 2025.

The bank’s risk-weighted capital ratio improved to 14.71%, which Mineer said now matches the company’s peer group. He added that management expects to “greatly exceed” that ratio, providing a buffer as the company works through credit-related issues.

Mineer also said First Guaranty reduced non-performing assets by $12 million and has ongoing efforts to continue reducing them. He said the combination of the company’s strategy and execution is intended to improve shareholder value.

“Our management team clearly understands that we work for you, and we are greatly respectful of the capital that you have given to us to manage for you,” Mineer told shareholders.

The meeting concluded after shareholders approved motions to accept the inspector of elections report, ratify actions of the board, officers and personnel since the prior annual meeting, and adjourn the session.

About First Guaranty Bancshares (NASDAQ:FGBI)

First Guaranty Bancshares, Inc is a financial holding company headquartered in Hammond, Louisiana. Through its principal subsidiary, First Guaranty Bank, the company provides a diversified range of commercial and retail banking services. Founded in 1932, First Guaranty Bancshares has grown from a community mutual bank into a publicly traded institution listed on the Nasdaq under the ticker FGBI.

The company’s core business activities encompass traditional deposit products and lending solutions.