First Guaranty Bancshares Inc. filed SEC Form 8-K: Entry into a Material Definitive Agreement, Financial Statements and Exhibits
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Savings Institutions
Finance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 28, 2024
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Item 1.01 Entry into a Material Definitive Agreement.
On June 28, 2024 First Guaranty Bank (the “Bank”), a wholly-owned subsidiary of First Guaranty Bancshares, Inc. (“First Guaranty”), sold three properties previously owned by the Bank, two stand-alone branches and a portion of the headquarters building which also contains a branch (collectively, the “Properties”), to FGB Partners, L.L.C. (the “Purchaser”), for an aggregate cash purchase price of approximately $15.0 million. All of the Properties are located in Louisiana.
Purchaser is wholly owned by three of our directors and significant shareholders: our Chairman Marshall T. Reynolds, Edgar Ray Smith III and William K. Hood.
The Bank concurrently entered into absolute net lease agreements (the “Lease Agreements”) with Purchaser under which the Bank will lease each of the Properties. Each of the Lease Agreements will have an initial term of 15 years with specified renewal options. We will not close any branches or exit any markets as part of the sale-leaseback transaction.
The sale-leaseback transaction resulted in a pre-tax gain of approximately $13.2 million, or $10.4 million after tax. Aggregate first full year of rent expense under the Lease Agreements will be approximately $1.3 million pre-tax, or $1.0 million after tax.
Item 9.01 Financial Statements and Exhibits
| Exhibit 10.1 | |||||
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: July 1, 2024 | |||||||||||
| By: | /s/Eric J. Dosch | ||||||||||
| Eric J. Dosch | |||||||||||
| Chief Financial Officer | |||||||||||
INDEX TO EXHIBITS
| Exhibit Number | Description | ||||
| Exhibit 10.1 | Lease Agreements, dated June 28, 2024, by and between First Guaranty Bank and FGB Partners, L.L.C. | ||||