First Guaranty Bank (LA/TX) Has Leading Rates On Long-Term CDs

In late September, Louisiana-based First Guaranty Bank raised the rates on its very long-term CDs. The addition of 40 bps resulted in the 5-, 6,- 7-, and 8-year CDs all earning 1.50% APY. Any of these CDs can be opened with a $500 minimum deposit and there is no stated balance cap.

The CDs are also available as IRA CDs (Traditional, Roth, and CESA), earning the same 1.50% APY with the same deposit requirements.

According to CSR, the Early Withdrawal Penalty for the 5- and 6-year CDs is two years of interest, and three years of interest for the 7- and 8-year CDs.

Availability

Headquartered in Hammond, Louisiana, First Guaranty Bank’s market area had historically been limited to Louisiana, but the 2017 acquisition of Texas-based Synergy Bank, SSB extended the Bank's footprint into five Texas counties, including Dallas County.

Opening a CD can be done at any of the 28 Louisiana branches located in the parishes of Avoyelles (5), Bossier (2), Caddo (2), Claiborne (2), Jefferson Davis (1), Lincoln (1), Livingston (3), Rapides (2), St. Helena (2), Tangipahoa (7), and Vermilion (1). First Guaranty’s website does not have any information about any COVID-related branch limitations (temporary closures, limited hours, etc.).

First Guaranty also has five Texas branches in Denton, Fort Worth, Garland, McKinney, and Waco, which were gained in the 2017 acquisition.

First Guaranty Bank’s online banking platform is currently limited to account management and bill payment services.

Bank Overview

First Guaranty Bank has an overall health grade of "B+” at DepositAccounts.com, with a Texas Ratio of 11.29% (above average), based on June 30, 2020 data. In the past year, First Guaranty Bank has increased its non-brokered deposits by $446.02 million, an excellent annual growth rate of 27.55%. Please refer to our financial overview of First Guaranty Bank (FDIC Certificate # 14028) for more details.

Founded in 1934 as the Guaranty Bank & Trust Company, First Guaranty Bank is currently the fifth largest bank headquartered in Louisiana, with more than $2.4 billion in assets and nearly 59,000 customer accounts. The 1971 rebrand was just the beginning of almost 50 years of growth and acquisitions. In 1999, 13 branches from Chicago-based Bank One were purchased and First Southwest Bank (LA) was acquired; between 2001 and 2011, three more Louisiana banks were acquired. In early 2017, First Guaranty Bank acquired the Texas-based Premier Bancshares, the parent company of Synergy Bank, SSB. The most recent acquisition was finalized in November 2019, when Union Bancshares (and its subsidiary, The Union Bank) joined the First Guaranty Bank financial family. According to an August 2019 press release,

“This is a very significant, positive move for First Guaranty. Darrel D. Ryland, the Board of Directors, and the staff of The Union Bank have built a very strong and profitable financial institution in the center of Louisiana. This acquisition will move First Guaranty into a part of Louisiana where we have never done business and also tie together all of our operations from north, south, and Texas. This move will provide great momentum with First Guaranty moving forward with our plans for continued growth and continued improvement in shareholder value,” said Alton Lewis, President and Chief Executive Officer of First Guaranty.

How the CDs Compare

Given First Guaranty’s disparate and multi-state market area, a comparison to nationally available CDs is suitable. When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available on a nationwide basis and require a similar minimum deposit, all of First Guaranty Bank’s long-term CD APYs currently rank first.

The above rates are accurate as of 11/14/2020.

Searching for the best CD rates, either nationally available or state-specific? Please refer to our CD Rates Table page.