Bangor threw away a golden opportunity to claim all three points at Lakeview Park on Saturday by conceding two late goals.
The Seasiders led 2-0 at half time thanks to goals from Mark Cooling and Stephen O'Neill, but Loughgall scored twice in the final eight minutes to secure a precious draw. Substitutes Wesley Boyle and Niall Lavery were on target for the Villagers.
A furious Garth Scates believes his Bangor side should have won the game.
“I'm very disappointed. This feels more like a defeat than a draw. We should have been out of sight before half time but we didn't take our chances when they came along," he said.
"Then in the second half we wasted another bagful of chances. I've no problem with the way we defended, but going forward, our attacking was disappointing. In the second half we wasted the ball – we just kept giving it away.”
The result will come as a major blow to Bangor, who have been in great form in recent weeks.
Manager Scates was disappointed by his side's second half performance.
“In the first half they couldn't deal with Jordan Forsythe or Andy Morrow, but in the second half we didn't push on. At half time we talked about the need to kill the game off, but we didn't do it and we've only ourselves to blame.
“We also conceded a late equaliser against Carrick Rangers, and it seems as if we haven't learned from that experience.”
Bangor took the lead in the first half when Loughgall left back Adam Rodgers fouled Dom Melly inside the penalty box. Former Distillery midfielder Mark Cooling stepped up and stroked the penalty home.
The Seasiders doubled their advantage in the 35th minute when Melly whipped the ball in from the right flank for Jordan Forsythe to knock the ball into the path of Stephen O'Neill, who fired home from point blank range.
The game changed when new Loughgall boss Gary McKinstry brought on substitutes Niall Lavery and Wesley Boyle five minutes into the second half.
In the 82nd minute Aaron Haire played a smart one-two with Boyle, before the former Leeds United man drilled the ball into the net from 12 yards.
In second half stoppage time, Lavery earned a point for Loughgall when his shot deflected off Colin Nixon and past Paul Cairnduff in the Bangor goal.
That late goal from Lavery meant Bangor were forced to settle for a point after dominating the majority of the game. Loughgall, on the other hand, showed the sort of fighting spirit that seemed to evade them last season.
The Seasiders travel to Crossgar on Saturday to face Kilmore Rec in the Steel & Sons Cup, in what is arguably the tie of the round.