Company: FGBI
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001408534-25-000015
Chunk: 6

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 1
Chunk 6
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ports. Waco is the home of Baylor University with approximately 21,000 students.

Mideast Market. First Guaranty's branch in Vanceburg, Kentucky is located approximately 90 miles from Cincinnati, Ohio and 95 miles from Lexington, Kentucky. First Guaranty's branch in Bridgeport, West Virginia is located approximately 35 miles from Morgantown, West Virginia and 105 miles from Pittsburgh, Pennsylvania.

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Our Strategy

Our mission is to increase shareholder value while providing financial services for and contributing to the growth and welfare of the communities that we serve.  We aim to become the preferred bank for small businesses and consumers in both metropolitan and rural markets. Our goal is to expand our market share along Louisiana's key interstate corridors, including I-12, I-55, I-10, I-49, and I-20, and to continue our growth in the Texas markets of Dallas-Fort Worth-Arlington and Waco. Additionally, we seek to strengthen our relationships in Kentucky and West Virginia. This mission encompasses not only expanding our geographical footprint but also transforming lives by imparting personal finance skills and staying relevant through innovative banking solutions.

First Guaranty modified its business strategy in mid-2024.  Our new business strategy focuses on controlled asset growth, measured expense reductions, expanded balance sheet risk management, and enhanced credit risk management.

Controlled Asset Growth

First Guaranty successfully grew its loan portfolio and total assets during the last several years.  We plan to moderate future growth as we manage our current loan portfolio and capital levels.  We plan to reduce our exposure to commercial real estate loans particularly construction loans and non-owner occupied loans.  We will continue to pursue residential mortgage lending, consumer lending, owner occupied commercial real estate, commercial and industrial loans, and guaranteed lending.  We will continue to be a leading agricultural lender and grow our Farm Service Agency lending.  We will continue with our commercial leasing business.  

Measured Expense Reduction 

We initiated a series of cost reduction measures during the third quarter of 2024.  These included planned reduction in staffing that has resulted in approximately 20 percent, or almost 100 fewer full time equivalent employees at the end of 2024 compared to the end of 2023.  We reduced discretionary expenses such as travel, training and advertising, and director fees, and modified our health care plan. We are working to replace external third party service providers with lower cost providers or with internally generated solutions.  We are evaluating our internal functions to