First Guaranty in La. to exit Texas with branch sale to Armstrong Bank

Armstrong Bank in Muskogee, Okla., has agreed to buy five branches from First Guaranty Bancshares in Hammond, La.

The $4.1 billion-asset First Guaranty will exit Texas after selling the locations, along with $270 million in deposits and $110 million in loans, to the $2.7 million-asset Armstrong. The deal, which includes a 7.65% deposit premium, is expected to close in the third quarter.

First Guaranty said the deal should boost its bank’s Tier 1 leverage ratio by about 100 basis points.

The sale “reinforces First Guaranty’s capital position and strengthens our ability to focus on the markets most critical to our long‑term success,” First Guaranty President and CEO Michael Mineer said in the release.

Piper Sandler and Fenimore Kay Harrison advised First Guaranty. Performance Trust Capital Partners and McAfee and Taft advised Armstrong.