HAMMOND, LA – First Guaranty Bancshares, Inc. (NASDAQ:FGBI) announced today that it will pay a quarterly cash dividend on its preferred stock. The company's Board of Directors has declared that holders of its 6.75% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock will receive a distribution of $16.875 per share on December 2, 2024.
The dividend is applicable for shareholders of record as of November 15, 2024. Those holding depositary shares, each representing a 1/40th interest in a share of the Series A Preferred Stock, will receive $0.421875 per depositary share on the same date. The payment to depositary shareholders will be made through the depositary for the Series A Preferred Stock, which will distribute the funds to the holders of record.
This dividend declaration reflects First Guaranty Bancshares (NYSE:GNTY)' commitment to providing returns to its preferred shareholders. The company, based in Hammond, Louisiana, operates within the federally chartered savings institution sector and is recognized under the SIC code 6035.
In other recent news, First Guaranty Bancshares has issued a letter to its shareholders, the contents of which remain undisclosed in the public document. The company has also announced a strategic shift, involving workforce reduction and a focus on capital growth and technological enhancements. This includes a staff cut of 71 employees, expected to reduce annual pre-tax noninterest expenses by approximately $12 million.
First Guaranty Bancshares declared a quarterly cash dividend for its common stock shareholders, marking the 125th consecutive quarter of such payments. Additionally, a quarterly cash dividend for its Series A Preferred Stock was announced, with holders receiving a distribution of $0.421875 per share.
In the realm of financial highlights, the company's total assets increased to $3.6 billion, with total loans rising by 3.1% to $2.8 billion. The company also completed a sale-leaseback transaction for two branches and part of its headquarters, resulting in a pre-tax gain of about $13.2 million. These are among the recent developments for First Guaranty Bancshares.
InvestingPro Insights
First Guaranty Bancshares' (NASDAQ:FGBI) recent dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro Tips, the company has maintained dividend payments for 19 consecutive years, demonstrating a consistent commitment to rewarding investors. This long-standing dividend history adds context to the recently declared preferred stock dividend.
The company's financial health appears solid, with InvestingPro data showing a P/E ratio of 12.13, suggesting a reasonable valuation relative to earnings. Additionally, First Guaranty Bancshares boasts a dividend yield of 3.09%, which may be attractive to income-focused investors in the current market environment.
Despite a challenging year with revenue growth declining by 5.24% over the last twelve months, the company has remained profitable. This resilience is reflected in another InvestingPro Tip, which indicates that analysts predict the company will be profitable this year.
For investors seeking a deeper understanding of First Guaranty Bancshares' financial position and future prospects, InvestingPro offers 11 additional tips that could provide valuable insights for investment decisions.
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