Company: FGBI
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001408534-25-000019
Chunk: 25

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 25
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2024.

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### TRANSACTIONS WITH RELATED PARTIES
The Sarbanes-Oxley Act generally prohibits companies from making loans to executive officers and directors, but it contains a specific exemption from such prohibition for loans made by First Guaranty Bank to our executive officers and directors in compliance with federal banking regulations.

First Guaranty is engaged, and expects to engage in the future, in banking transactions in the ordinary course of business with directors, officers, principal shareholders and their associates and/or immediate family members, on substantially the same terms, including interest rates and collateral on loans, as those prevailing at the same time for comparable transactions with persons not related to First Guaranty and that do not involve more than the normal risk of collectability or present other unfavorable features. The non-interested members of the Board review and approve related party transactions.

At December 31, 2024, the aggregate funded amount of extensions of credit to directors, executive officers, principal shareholders and their associates, as a group was $48.0 million or approximately 18.8% of total equity. Unfunded commitments totaled $22.6 million.

First Guaranty and its subsidiaries were engaged in the following non-banking transactions in which related persons had a direct or indirect material interest:

i. On June 28, 2024, the Bank consummated a sale-leaseback transaction relating to two stand-alone branches and a portion of the headquarters building which also contains a branch (collectively, the “Properties”). The Bank sold the Properties to a partnership owned by Messrs. Reynolds, Hood and Smith, directors of First Guaranty, for an aggregate cash purchase price of $14.7 million. The Bank also agreed to lease the Properties back from this partnership. The sale-leaseback transaction resulted in a pre-tax gain of approximately $13.3 million, or $10.5 million after tax, during 2024. During the year ended December 31, 2024, the Bank paid approximately $0.6 million to the partnership pursuant to the leasing of the Properties.

ii. The Bank paid approximately $0.3 million for the years ended December 31, 2024 and 2023, respectively, for printing services and supplies and office furniture and equipment to Champion Graphic Communications (or subsidiary companies of Champion Industries, Inc.), of which Marshall T. Reynolds, the Chairman of First Guaranty's Board of Directors, is Chairman of the Board of Directors