First Guaranty Bancshares, Inc. announced that it has entered into a subordinated note purchase agreement with a new lender, Smith & Tate Investment, L.L.C. for a private placement of subordinated note for gross proceeds of $30,000,000 on March 28, 2024. The note is for a ten year term and will bear interest at a floating rate based on the prime rate reported by the Wall Street Journal plus 75 basis points until the redemption or maturity. The note will mature on March 28, 2034.

The company may not repay the notes before March 28, 2029. The interest is payable in arrears on monthly basis. The note will be an unsecured and subordinated obligation of the company.

The note shall be non-redeemable in whole or in part prior to the fifth anniversary of the issuance by giving a not less than 10 day?s notice by paying 100% of the outstanding principal amount plus the accrued interest. After the fifth anniversary the note will be redeemable at 100% of the principal amount and interest outstanding with integral multiples of $1,000. The company will issue securities pursuant to exemption provided under Regulation D.