| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.25 | 49 |
| Intrinsic value (DCF) | 840.17 | 4842 |
| Graham-Dodd Method | 15.40 | -9 |
| Graham Formula | 34.38 | 102 |
First Guaranty Bancshares, Inc. (NASDAQ: FGBIP) is a regional banking holding company operating through its subsidiary, First Guaranty Bank, primarily serving Louisiana and Texas. Founded 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 like credit cards, mobile banking, and merchant solutions, alongside investment activities in government securities, municipal bonds, and mortgage-backed securities. With 36 banking facilities across key markets, including Baton Rouge, Dallas-Fort Worth, and Shreveport-Bossier City, First Guaranty Bancshares combines community-focused banking with modern financial solutions, positioning itself as a trusted regional player in the competitive Southern U.S. banking landscape.
First Guaranty Bancshares presents a conservative investment profile with a low beta (0.437), reflecting lower volatility relative to the market. The company’s $249M market cap and $124M net income (FY 2024) demonstrate stable profitability, supported by diversified revenue streams from commercial lending and deposit services. Key strengths include a strong regional presence in Louisiana and Texas, where it benefits from local market familiarity and relationship-driven banking. However, risks include exposure to regional economic cycles, particularly in energy-dependent markets, and competitive pressures from larger national banks. The dividend yield (implied ~6.8% based on $1.69/share) may appeal to income-focused investors, but investors should monitor net interest margin trends and loan portfolio quality amid rising interest rates. Capital adequacy appears solid with $564M in cash equivalents, though debt levels ($195M) warrant attention.
First Guaranty Bancshares competes as a community-focused regional bank, differentiating itself through personalized service and local decision-making—a contrast to national banks’ scale-driven models. Its competitive advantage lies in deep customer relationships in secondary markets like Hammond and Alexandria, where larger players may lack granular presence. The bank’s loan portfolio skews toward commercial real estate and small business lending (non-farm non-residential loans comprise a significant share), which offers higher yields but exposes it to sector-specific downturns. While its digital offerings (mobile banking, remote deposit capture) are table stakes, they lag behind tech-forward peers like Frost Bank. The company’s investment in mortgage-backed securities ties performance to housing markets, a potential risk in a high-rate environment. Its Texas expansion (Dallas-Fort Worth, Waco) pits it against entrenched competitors like Comerica and independent banks, requiring disciplined underwriting to maintain asset quality. With a modest market cap, First Guaranty lacks the scale to compete on cost efficiency but can leverage agility in niche lending (e.g., agricultural loans) where larger banks are less active.