Premier Financial Bancorp in Huntington, W.Va., has received a $12 million loan from First Guaranty Bancshares in Hammond, La.

The $1.2 billion-asset Premier said it will use some of the funds from the loan to refinance a separate $4.5 million loan with First Guaranty. Additional funds will be used to pay off a total of $7.4 million in loans with the $71 million-asset Bankers' Bank of Kentucky in Frankfort.

The new agreement with First Guaranty is described in a Thursday regulatory filing as a promissory note and business loan. The new loan has a 4% fixed rate and is due August 2020. The loan is secured by 25% of Premier's stake in one of its two operating banks, the $854 million-asset Premier Bank in Huntington.

Premier also has a separate $3 million credit line with First Guaranty that is due in next June.

Marshall Reynolds, Premier's chairman, owns 23.8% of the $1.5 billion-asset First Guaranty. Reynolds also owns 10.2% of Premier.

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