| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 282.73 | 3045 |
| Intrinsic value (DCF) | 463.53 | 5056 |
| Graham-Dodd Method | 15.40 | 71 |
| Graham Formula | 28.86 | 221 |
First Guaranty Bancshares, Inc. (NASDAQ: FGBI) is a regional banking holding company operating through its subsidiary, First Guaranty Bank, primarily serving Louisiana and Texas. Established in 1934 and headquartered in Hammond, Louisiana, the company provides a comprehensive suite of commercial banking services, including personal and business checking, savings, money market accounts, and time deposits. Its loan portfolio spans non-farm non-residential real estate loans, commercial and industrial loans, residential mortgages, and agricultural loans, catering to small-to-medium-sized businesses, professionals, and individuals. The bank also offers consumer services such as credit cards, mobile banking, and merchant solutions, alongside investment securities including U.S. government and municipal bonds. With 36 banking facilities across key markets like Baton Rouge, Dallas-Fort Worth, and Shreveport-Bossier City, FGBI maintains a strong regional presence. As a community-focused financial institution, it combines traditional banking with digital solutions, positioning itself competitively in the Southern U.S. banking sector.
First Guaranty Bancshares presents a stable regional banking investment with a market cap of ~$120.5M and a low beta (0.437), indicating lower volatility relative to the market. The company reported $111.5M in revenue and $12.4M net income for the latest period, with a diluted EPS of $1.18 and a modest dividend yield (~2.2% based on a $0.26/share payout). Strengths include a diversified loan portfolio, strong liquidity ($563.8M cash), and a conservative debt profile ($194.9M total debt). However, its regional concentration in Louisiana and Texas exposes it to localized economic risks, and its small scale may limit competitive agility against larger peers. Investors may value its steady performance and community banking focus, but growth prospects could be constrained by limited geographic diversification.
First Guaranty Bancshares competes in the crowded regional banking space, differentiating itself through hyper-localized service and a diversified product mix targeting SMEs and consumers. Its competitive advantage lies in deep community relationships and a nimble operational structure, allowing tailored solutions—evident in its loan portfolio’s balance between commercial real estate (37% of loans) and consumer lending. However, its regional focus (primarily Louisiana) limits economies of scale compared to multi-state rivals, and its technology offerings (e.g., mobile banking) may lag behind larger banks’ digital investments. The bank’s low-cost deposit base (74% of funding) supports net interest margins, but its reliance on traditional branch banking (36 locations) could be a long-term liability as digital adoption grows. Competitively, FGBI is positioned as a ‘middle player’—larger than community banks but smaller than regional giants—allowing it to retain local loyalty while lacking the resources to aggressively expand or innovate. Its conservative risk profile (0.4 beta) appeals to stability-seeking investors but may curb high-growth opportunities.