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First Guaranty Bancshares Faces Material Weakness in Financial Reporting Controls, Risks Investor Confidence and Nasdaq Listing

First Guaranty Bancshares Faces Material Weakness in Financial Reporting Controls, Risks Investor Confidence and Nasdaq Listing

First Guaranty Bancshares (FGBI) has disclosed a new risk, in the Accounting & Financial Operations category.

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First Guaranty Bancshares has identified a material weakness in its internal control over financial reporting, as disclosed in its Quarterly Report on Form 10-Q. This weakness led management to conclude that the company’s controls were ineffective as of June 30, 2025. While efforts are underway to address the issue, there is no guarantee of success, and the process may incur additional costs and strain management resources. The persistence of such weaknesses could lead to further deficiencies, potential SEC reporting failures, and a loss of investor confidence, potentially impacting stock prices and Nasdaq listing status.

Overall, Wall Street has a Hold consensus rating on FGBI stock based on 1 Hold.

To learn more about First Guaranty Bancshares’ risk factors, click here.

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