First Guaranty Bank, based in Hammond, Louisiana, has agreed to a consent order related to the credit quality of its borrowers, according to a filing with the U.S. Securities and Exchange Commission on Friday.filingstated.

The Federal Deposit Insurance Corporation (FDIC) and the Louisiana Office of Financial Institutions (OFI) are restricting the $3.9 billion-asset bank from extending additional credit to borrowers classified as "loss" or charged off in a September 2025 regulatory examination and not yet recovered.

Regulators also restrict First Guaranty Bank from extending additional credit to borrowers classified as "doubtful" or "substandard" in the examination and not yet recovered, unless the bank's board signs a written statement detailing why not extending credit would have an adverse impact.

The order, effective Friday, requires First Guaranty Bank to maintain a minimum Tier 1 leverage capital ratio of 9% and a minimum total risk-based capital ratio of 14%.

Within 120 days, the bank must eliminate from its books, through charge-off or recovery, assets or portions of assets classified as "loss" in the September 2025 examination, as well as 50% of assets classified as "doubtful."

Prior to that, within 60 days, First Guaranty Bank must submit a written plan to regulators detailing how it will reduce remaining assets classified as "doubtful" and "substandard," including specific information on each asset with a balance of $2 million or more, according to Friday's order.

In the interim, within 90 days, First Guaranty Bank's board must submit a written plan to regulators for identifying, measuring, and monitoring the bank's commercial real estate (CRE) concentration risk.

Also within 90 days, the board must implement measures to correct weaknesses identified in CRE stress testing, as well as certain loan underwriting and credit administration weaknesses identified in the September 2025 examination.

During the term of the order, the bank may not pay any dividends to its holding company without prior written approval from regulators. First Guaranty Bank must also submit quarterly progress reports to the FDIC and OFI.

First Guaranty Bank said in Friday's filing that it has submitted a capital plan to regulators and that, aside from the Tier 1 leverage capital ratio requirement, "the Bank currently believes it is in full compliance with the Consent Order."

The bank noted that as of June 30, its Tier 1 leverage capital ratio was 7.09% and its total risk-based capital ratio was 16.21%.

In a move that could boost First Guaranty Bank's Tier 1 capital ratio, the bank announced on Thursday that it had completed the sale of five branches to Armstrong Bank in Muskogee, Oklahoma. When the deal was proposed in March, First Guaranty Bank estimated it would increase the Tier 1 leverage capital ratio by approximately100 basis points。

According tosecond-quarter resultsdisclosed on July 28, First Guaranty Bank's real estate-related nonperforming assets fell to $38.3 million from $88.6 million (as of June 30).

The bank reported no criticized loan relationships as of June 30, but its substandard loan relationships were $276.6 million, according to the earnings report.

Overall, the bank earned $3.4 million in the second quarter, compared with a loss of $7.3 million in the same period last year.