First Guaranty Bank (FGB) is a

bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...

based in

Hammond, Louisiana Hammond is the largest city in Tangipahoa Parish, Louisiana, United States, located east of Baton Rouge and northwest of New Orleans. Its population was 20,019 in the 2010 U.S. census, and 21,359 at the 2020 population estimates program. Ham ...

. It is the primary subsidiary of First Guaranty Bancshares, Inc., a

bank holding company A bank holding company is a company that controls one or more banks, but does not necessarily engage in banking itself. The compound bancorp (''banc''/''bank'' + '' corp ration') is often used to refer to these companies as well. United States ...

. The bank operates 21

branches A branch, sometimes called a ramus in botany, is a woody structural member connected to the central trunk of a tree (or sometimes a shrub). Large branches are known as boughs and small branches are known as twigs. The term ''twig'' usually ...

History

The bank was founded in

in 1934 as Guaranty Bank & Trust Company. In 1971, the bank was renamed First Guaranty Bank. In 1999, the bank acquired 13 branches from

Bank One Bank One Corporation was an American bank founded in 1968 and at its peak the sixth-largest bank in the United States. It traded on the New York Stock Exchange under the stock symbol ONE. The company merged with JPMorgan Chase & Co. on July 1, 2 ...

. In 2007, the company acquired Homestead Bancorp, Inc. for $13 million in cash. It also acquired Douglass National Bank of Kansas City. On September 22, 2011, the bank exited its participation in the

Troubled Asset Relief Program The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase toxic assets and equity from financial institutions to strengthen its financial sector that was passed by Congress and signed into law by President G ...

by repurchasing securities from the

United States Treasury The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and t ...

for $21.1 million. In 2017, the company acquired Premier Bancshares for $21 million in cash and stock. In August 2019, the bank's holding company entered into a deal to purchase the holding company of The Union Bank of

Marksville, Louisiana Marksville is a small city in and the parish seat of Avoyelles Parish, Louisiana, Avoyelles Parish, Louisiana, United States. The population was 5,702 at the 2010 United States Census, 2010 census, an increase of 165 over the 2000 tabulation of 5, ...

for $43 million. When completed late in 2019, the acquisition will increase the bank's number of branches by about 50% to around 30.

Allegation of racial discrimination

In 2019,

Nikole Hannah-Jones Nikole Sheri Hannah-Jones (born April 9, 1976) is an American investigative journalist, known for her coverage of civil rights in the United States. In April 2015, she became a staff writer for ''The New York Times.'' In 2017 she was awarded a Ma ...

, in a ''New York Times'' podcast, asserted that the bank discriminated against two African-American farmers, June and Angie Provost. According to the reporting, the bank is alleged to have engaged in fraud by changing loan amounts and forging the signatures of the applicants. This had the intended effect of putting financial pressure on the Provosts and eventually led them to lose their farm and their home to foreclosure. The case is now the subject of litigation and a federal USDA whistle-blower complaint. The bank denied these allegations, saying that they are "completely unfounded and frivolous", also stating that it "has not and does not engage in discriminatory practices".

References

External links

{{DEFAULTSORT:First Guaranty Bank 1934 establishments in Louisiana Banks based in Louisiana Companies listed on the Nasdaq Companies established in 1934 Hammond, Louisiana