First Guaranty Bancshares (NASDAQ:FGBI), Inc. (“First Guaranty”) (FGBI), the holding company for First Guaranty Bank, announced today that it has completed a private placement offering of $10 million through the sale of 714,286 shares of common stock at $14 per share. This was accomplished by the unanimous participation of its Board of Directors and the Board of Directors of First Guaranty Bank, along with certain accredited investors within the banking organization.
Commenting on the capital raise, Marshall T. Reynolds, Chairman of the Board of Directors of First Guaranty said, “We have been frustrated by the unfair beating our stock has taken in recent months, and the completion of the offering with the 100% participation of Directors shows our belief in our Bank, which has been in operation since 1934.”
“We are pleased with the interest our Boards of Directors have in contributing to the overall growth of the bank. The momentum grows as we make progress toward our goals of enhancing shareholder value and building a fortress balance sheet for First Guaranty Bancshares, Inc.,” said First Guaranty President and Chief Executive Officer, Alton B. Lewis.
First Guaranty expects to use the proceeds from the capital raise for general corporate purposes, including to support continued growth and to enhance regulatory capital ratios.