First Guaranty insiders open their wallets to back the bank
American Banker Directors and other insiders at First Guaranty Bancshares in Hammond, Louisiana, bolstered the company's capital with a $10 million private placement.
First Guaranty Bancshares
After watching First Guaranty Bancshares's stock price languish for more than two months, the $3.2 billion-asset company's board of directors decided to act.
At the behest of Chairman Marshall Reynolds, all six directors, along with other insiders, participated in $10 million private placement. The stock sale, announced Wednesday, involved the purchase of more than 714,000 shares at $14 each, a price substantially higher the previous day's closing of $13.07
Shares in the Hammond, Louisiana-based First Guaranty jumped 5% Wednesday to close at $13.74. And though the rally lost steam as the week wore on the stock closed at $13.27 Friday the degree of insider support demonstrated by the private placement likely grabbed investors' attention, Freddie Strickland, who covers First Guaranty for Janney Montgomery Scott, noted Wednesday in a research report.
