First Guaranty Bancshares amends loan terms with director’s firm

Published 09/06/2025, 22:00
First Guaranty Bancshares amends loan terms with director’s firm

First Guaranty Bancshares (NASDAQ:FGBI), Inc., a federally chartered savings institution based in Louisiana, has entered into amendments for its promissory note and subordinated note with Smith & Tate Investment, L.L.C. on June 4, 2025. This information is based on a recent SEC filing.

The amendments involve First Guaranty Bancshares, Inc. ("First Guaranty" or the "Company") and Smith & Tate Investment, L.L.C. ("Smith & Tate"), a company controlled by Edgar Ray Smith, III, a director and principal shareholder of First Guaranty. The changes pertain to a promissory note originally dated October 5, 2023, and a floating rate subordinated note due March 28, 2034.

According to the amendments, First Guaranty has the option to waive principal payments for four consecutive quarters starting from the June 30, 2025, interest payment date and ending on March 31, 2026. The company can also choose to pay interest during this period either in cash or in shares of its common stock, based on the cash payment due and the stock’s closing bid price on the day before the payment date.

The promissory note previously required quarterly principal payments of $1,007,812.50 plus accrued interest, beginning December 31, 2023, and a final payment on October 5, 2033. The subordinated note had monthly interest payments based on the Prime Rate plus 75 basis points. Now, the interest on the subordinated note will be payable quarterly on the last day of each calendar quarter.

The full details of these amendments are outlined in the exhibits attached to the SEC filing. These strategic financial moves by First Guaranty Bancshares, Inc. reflect adjustments to their debt payment schedules and offer insight into the company’s financial management strategies. The stock has experienced significant volatility, with a 34.7% decline over the past six months. InvestingPro subscribers can access additional insights, including 6 more exclusive ProTips and comprehensive financial analysis to better understand the company’s prospects.

In other recent news, First Guaranty Bancshares has declared a quarterly cash dividend of $0.01 per share on its common stock, marking its 128th consecutive dividend payment. This announcement underscores the company’s commitment to returning value to its shareholders. Additionally, the company has declared a forthcoming quarterly cash dividend for its Series A Preferred Stock, amounting to $0.421875 per depositary share, scheduled for distribution on June 2, 2025.

During its annual shareholder meeting, First Guaranty Bancshares announced the election of eight directors and approved proposals related to executive compensation and the appointment of an independent registered public accounting firm for the fiscal year. All proposed directors were successfully elected, and the appointment of Griffith, DeLaney, Hillman & Lett, CPAs, PSC was ratified. In a separate development, the company welcomed Mr. Robert W. Walker to its Board of Directors.

Mr. Walker, with his extensive experience, previously led Premier Financial Bancorp, Inc. as President and CEO until 2021. These developments reflect First Guaranty Bancshares’ ongoing efforts to maintain strong governance and deliver consistent returns to its shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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