First Guaranty Bancshares in Hammond, La., laid off about 15% of its employees and cut its dividend in half as it braces for slowing asset growth and aims to improve its capital position.
The $3.6 billion-asset company said in a press release that it cut 71 positions. Each employee will receive 60 days of pay, payment for unused vacation time and healthcare coverage through Sept. 30.
First Guaranty said the changes should cut annual pretax noninterest expense by roughly $12 million. The company expects to incur about $2 million in pretax charges in the fourth quarter.
Separately, the company said that nonaccrual loans more than doubled from the end of last year to mid-2024, reaching $62.3 million. The biggest change was a commercial real estate relationship – comprised of five loans backed by Midwest real estate – totaling $36.9 million.
The company also completed the sale of two branches and a portion of its headquarters building for a pretax gain of $13.2 million. It agreed to lease the properties and will incur about $1.3 million in pretax rent expenses in the first year.
These decision come just months after the company hired Michael Mineer as its president and CEO.