First Guaranty Bancshares Inc. has announced a significant financial transaction involving the conversion of debt into equity. On June 16, 2025, the company entered into an agreement with Edgar Ray Smith, III, a director and significant shareholder, to exchange a $15 million Floating Rate Subordinated Note for 1,981,506 newly issued common shares. This strategic move will see the cessation of interest accrual on the note, effectively concluding Mr. Smith's rights to it. The conversion is expected to be finalized around June 30, 2025, pending customary conditions and approvals. This transaction reflects First Guaranty's ongoing efforts to optimize its capital structure.
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