First Guaranty Bancshares, Inc. and Lone Star Bank: A Match Made in Bluebonnet Heaven
HAMMOND, La. and HOUSTON, Jan. 09, 2023 (GLOBE NEWSWIRE) — First Guaranty Bancshares, Inc. (Nasdaq: FGBI) – First Guaranty Bank (“FGB”), a wholly owned subsidiary of First Guaranty Bancshares, Inc. (“First Guaranty”), is growing! Selected by Newsweek in 2021, 2022 and 2023 as America’s “Best Small Bank”, FGB is at it again and set to grow with a definitive agreement for the purchase of Lone Star Bank (“Lone Star”) in an all-stock transaction.
Founded over 16 years ago in Houston, Texas, Lone Star, like FGB, has become known for its stability and service. With four branches spanning I-10 from the Greater Houston area to Columbus, Lone Star’s locations will increase FGB’s presence and growth opportunities in the Lone Star State.
First Guaranty is a Louisiana corporation and a financial holding company headquartered in Hammond, Louisiana and was founded over 88 years ago. FGB is a Louisiana-chartered commercial bank that provides personalized commercial banking services primarily to Louisiana and Texas customers through 36 banking facilities primarily located in Louisiana, Texas, Kentucky and West Virginia. With $3.1 billion in assets, First Guaranty looks forward to expanding its footprint into the fast-growing Texas market. The proposed acquisition will allow First Guaranty to further solidify its Texas presence with an established, well-run Houston-based organization and to offer its products, services, and delivery infrastructure with a knowledgeable and experienced Lone Star team.
Alton J. Lewis, Vice-Chairman, President and Chief Executive Officer of First Guaranty and FGB states, “We are excited to welcome Lone Star Bank customers and staff into our corporate family. First Guaranty Bank’s philosophy and goal is to have a strong presence in the communities we serve and to be a strong contributor to the communities. We look forward to spreading this philosophy in the Houston market.”
“We are very pleased to join the First Guaranty team,” said Dennis L. Harrington, President and Chief Executive Officer of Lone Star. “The merger will allow us to better serve our customers by expanding both our commercial and consumer product offerings. First Guaranty’s strong focus on customer service fits in well with our own philosophy. We look forward to a great future.”
Under the terms of the Merger Agreement, First Guaranty will issue shares of First Guaranty common stock with an assumed value of $23.67 per share on the closing date of the transaction to the shareholders of Lone Star with an aggregate value equal to 1.5 times Lone Star’s tangible book value as of the month end prior to the closing date, subject to certain adjustments described in the Merger Agreement. Outstanding options to purchase Lone Star common stock will be cashed out. The combined financial institutions will have approximately $3.2 billion in total assets, $2.5 billion in total loans, and $2.8 billion in total deposits following the close of the transaction. The Merger Agreement was approved by the board of directors of each of First Guaranty, FGB, and Lone Star.
G. Ortega Law PLLC, Pickering & Cotogno LLC, Bradley Arant Boult Cummings LLP and Phelps Dunbar, L.L.P. provided legal counsel to First Guaranty. Performance Trust Capital Partners, LLC served as financial advisor and Hunton Andrews Kurth LLP served as legal advisor to Lone Star.
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CONTACT: ALTON LEWIS, CEO AND ERIC DOSCH, CFO
985.375.0350 / 985.375.0308
