First Guaranty in La. swaps common stock for maturing sub debt

First Guaranty Bancshares in Hammond, La., swapped common stock for a subordinated note.

The $3.8 billion-asset company disclosed in a regulatory filing that it struck a deal with Edgar Ray Smith III to provide the director and shareholder with nearly 2 billion shares of common stock for $15 million of subordinated debt. The note was due on June 21.

First Guaranty, which hired Michael Mineer as CEO in May 2024, is looking to turn itself around. It has cut 15% of its workforce and slashed its dividend to a penny. The company lost $6.2 million in the first quarter after selling two commercial real estate loans at a loss.