First Guaranty Bancshares Enters Loan Agreement

Ticker: FGBIP · Form: 8-K · Filed: Apr 3, 2024 · CIK: 1408534

First Guaranty Bancshares, Inc. 8-K Filing Summary
FieldDetail
CompanyFirst Guaranty Bancshares, Inc. (FGBIP)
Form Type8-K
Filed DateApr 3, 2024
Risk Levelmedium
Pages3
Reading Time3 min
Key Dollar Amounts$1, $30.0 million
Sentimentneutral

Sentiment: neutral

Topics: debt, financing

Related Tickers: FGBI

TL;DR

FGBI just signed a new loan deal, potentially boosting their cash reserves.

AI Summary

On March 28, 2024, First Guaranty Bancshares, Inc. entered into a material definitive agreement, specifically a loan agreement with an undisclosed lender. This agreement creates a direct financial obligation for the registrant. The filing also includes financial statements and exhibits related to this event.

Why It Matters

This filing indicates First Guaranty Bancshares has secured new financing, which could impact its liquidity and future growth strategies.

Risk Assessment

Risk Level: medium — The nature and terms of the loan agreement are not fully disclosed, introducing uncertainty about its impact on the company's financial health.

Key Players & Entities

  • First Guaranty Bancshares, Inc. (company) — Registrant
  • March 28, 2024 (date) — Date of earliest event reported

FAQ

What is the principal amount of the loan agreement?

The filing does not specify the principal amount of the loan agreement.

Who is the lender in this material definitive agreement?

The identity of the lender is not disclosed in this filing.

What is the interest rate or repayment terms of the loan?

Specific details regarding the interest rate and repayment terms are not provided in this document.

What is the purpose of this new financial obligation?

The filing states the creation of a direct financial obligation but does not detail its specific purpose.

Are there any collateral requirements associated with this loan?

The filing does not mention any collateral requirements for the loan agreement.

Filing Stats: 835 words · 3 min read · ~3 pages · Grade level 9.3 · Accepted 2024-04-03 16:37:29

Key Financial Figures

  • $1 — ange on which registered Common Stock, $1 par value FGBI The Nasdaq Stock Market
  • $30.0 million — or of the Company. The Company issued a $30.0 million subordinated note (the "Note") to the P

Filing Documents

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement On March 28, 2024, First Guaranty Bancshares, Inc. (the "Company") entered into a Subordinated Note Purchase Agreement (the "Agreement") with Smith & Tate Investment, L.L.C. (the "Purchaser"), a company controlled by Edgar Ray Smith III, a director of the Company. The Company issued a $30.0 million subordinated note (the "Note") to the Purchaser in a private placement. The Note was offered and sold in reliance on the exemptions from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended. The Purchaser is an "accredited investor" within the meaning of Rule 501(a) of Regulation D. The Note is for a ten-year term and bears interest at a floating rate based on the Prime Rate as reported by the Wall Street Journal plus 75 basis points for the period of time until redemption or maturity. The Note is scheduled to mature on March 28, 2034. Subject to limited exceptions, the Company cannot repay the Note until after March 28, 2029. The Company will pay interest in arrears monthly during the term of the Note. The Note is an unsecured and subordinated obligation of the Company and ranks junior in right of payment to any senior indebtedness and obligations to general and secured creditors. The Note is expected to qualify for treatment as Tier 2 capital for regulatory capital purposes. The Agreement contains customary subordination provisions and events of default. The right of the Company to accelerate the payment of the Note is limited to bankruptcy or insolvency. The foregoing descriptions of the Agreement and the Note do not purport to be complete and are qualified in their entirety by reference to the Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and the Note, which is filed as Exhibit 4.1 to this Current Report on Form 8-K, both of which are incorporated into this report by reference. Item 2.03 Creation of a Direct Financial Obligation or an Obligation Un

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits Exhibit 4.1 Subordinated Note, Dated as of March 28, 2024, by and between First Guaranty Bancshares, Inc. and Smith & Tate Investments, L.L.C. Exhibit 10.1 Subordinated Note Purchase Agreement, dated as of March 28, 2024, by and between First Guaranty Bancshares, Inc. and Smith & Tate Investments, L.L.C.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FIRST GUARANTY BANCSHARES, INC. (Registrant) Date: April 3, 2024 By: /s/Eric J. Dosch Eric J. Dosch Chief Financial Officer INDEX TO EXHIBITS Exhibit Number Description Exhibit 4.1 Subordinated Note, dated as of March 28, 2024, by and between First Guaranty Bancshares, Inc. and Smith & Tate Investment, L.L.C. Exhibit 10.1 Subordinated Note Purchase Agreement, dated as of March 28, 2024, by and between First Guaranty Bancshares, Inc. and Smith & Tate Investments, L.L.C.

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