Guaranty Bancshares, Inc. (NYSE: GNTY) (the "Company"), the
parent company of Guaranty Bank & Trust, N.A. (the "Bank"),
today reported financial results for the fiscal quarter and year
ended December 31, 2024. The Company's net income available to
common shareholders was $10.0 million, or $0.88 per basic share,
for the quarter ended December 31, 2024, compared to $7.4 million,
or $0.65 per basic share, for the quarter ended September 30, 2024
and $5.9 million, or $0.51 per basic share, for the quarter ended
December 31, 2023. Return on average assets and average equity for
the fourth quarter of 2024 were 1.27% and 12.68%, respectively,
compared to 0.96% and 9.58%, respectively, for the third quarter of
2024 and 0.73% and 7.93%, respectively, for the fourth quarter of
2023. The increase in earnings during the fourth quarter of 2024
compared to the fourth quarter of 2023 was primarily due to a $2.4
million, or 10.1%, increase in net interest income, a $930,000, or
19.4%, increase in noninterest income, and a decrease in
noninterest expense of $1.5 million, or 7.1%, compared to the prior
year quarter. The increase in earnings as compared to the third
quarter of 2024 was primarily driven by a $2.0 million, or 8.4%,
increase in net interest income.
"We are very satisfied with our fourth quarter and year-end 2024
financial results. The decreases in Federal interest rates coupled
with continued repricing of our loan and securities portfolio at
higher yields allowed our net interest margin to grow to 3.54% for
the fourth quarter of 2024 and 3.32% for the year ended December
31, 2024. We strategically shrunk our balance sheet during 2024 to
build liquidity and capital, and to reduce credit risk, while
maintaining our core deposits. As a result, we ended 2024 with
strong key performance metrics and very low non-performing assets.
We believe we are well positioned for loan growth and continued
favorable results for our shareholders during 2025," said Ty
Abston, the Company's Chairman and Chief Executive Officer.
QUARTERLY AND ANNUAL HIGHLIGHTS
- Increasing NIM and Stable Earnings. Net interest margin,
on a fully taxable equivalent basis, continued to improve in the
fourth quarter, increasing to 3.54%, compared to 3.33% in the third
quarter and 3.11% in the prior year quarter. Net interest margin
improved to 3.32% for the year compared to 3.15% in 2023. With our
net earnings of $10.0 million in the fourth quarter, total net
income for 2024 was $31.5 million, compared to $30.0 million in
2023, an increase of 5.0%. The improvements to net earnings
resulted primarily from the decrease in interest bearing liability
costs, while earning assets have repriced upward.
- Solid Balance Sheet, Capital and Liquidity. During the
past year, we have strategically shrunk our balance sheet primarily
by paying off debt and allowing transactional/non-relationship
loans to pay off. We believe this strategy positions us to be on
the offense when strong opportunities for growth or M&A are
presented. Our capital and liquidity ratios, as well as contingent
liquidity sources, remain very healthy. Our liquidity ratio,
calculated as cash and cash equivalents and unpledged investments
divided by total liabilities, was 16.5% as of December 31, 2024,
compared to 12.2% as of December 31, 2023. Our total available
contingent liquidity, net of current outstanding borrowings, was
$1.3 billion, consisting of FHLB, FRB and correspondent bank fed
funds and revolving lines of credit. Finally, our total equity to
average quarterly assets as of December 31, 2024 was 10.2%. If we
had to recognize our entire net unrealized losses on both AFS and
HTM securities, our total equity to average assets ratio would be
9.4%†, which we believe represents a strong capital level
under regulatory requirements.
- Excellent Asset Quality. Overall credit quality remains
excellent and the expected losses on deteriorated credits are low
due to the Bank's equity position and/or strong guarantor support.
Nonperforming assets as a percentage of total assets were 0.16% at
December 31, 2024, compared to 0.66% at September 30, 2024 and
0.18% at December 31, 2023. Net charge-offs (annualized) to average
loans were 0.00% for the quarter ended December 31, 2024, compared
to 0.04% for the quarter ended September 30, 2024, and 0.04% for
the quarter ended December 31, 2023. There was a reversal of the
provision for credit losses of $250,000 during the fourth quarter,
in addition to the $1.95 million reversal of provision for credit
losses during the first three quarters of the year. Changes to
historical and qualitative factors have been minimal during 2024,
therefore the decrease in the allowance for credit losses was due
primarily to the decreases in outstanding loan balances of $191.4
million, or 8.2%, since January 1, 2024. We continue to work with a
relatively small number of stressed borrowers, which is reflected
in the low $3.7 million and $2.4 million balances of nonaccrual
loans and loans that are risk-rated Substandard, respectively, as
of December 31, 2024. Nonperforming assets consist of both
nonaccrual loans and other real estate owned (ORE). Nonaccrual
loans represented 0.17% of total outstanding loan balances as of
December 31, 2024 and consisted primarily of smaller dollar
consumer and small business loans. ORE at year end consisted of one
real estate property, which we expect to resolve and sell in the
first quarter of 2025 with minimal, if any, losses. Nonaccrual
loans represented 0.24% of total outstanding loan balances as of
both September 30, 2024 and December 31, 2023.
- Granular and Consistent Core Deposit Base. As of
December 31, 2024, we have 90,215 total deposit accounts with an
average account balance of $29,842. We have a historically reliable
core deposit base, with strong and trusted banking relationships.
Total deposits increased by $23.3 million during the fourth
quarter. Savings and money market account balances increased $29.1
million and DDA account balances increased $3.4 million, while time
deposit balances decreased $9.2 million during the fourth quarter
of 2024. Excluding public funds and Bank-owned accounts, our
uninsured deposits as of December 31, 2024 were 26.3% of total
deposits. Interest rates paid on deposits during the quarter
decreased as a result of lower federal funds rates. Our cost of
interest-bearing deposits decreased 26 basis point during the
quarter from 3.33% in the prior quarter to 3.07%. Our cost of total
deposits for the fourth quarter of 2024 decreased 20 basis points
from 2.31% in the prior quarter to 2.11%†.
Noninterest-bearing deposits represent 31.1% of total deposits as
of December 31, 2024.
† Non-GAAP financial metric. Calculations of this metric
and reconciliations to GAAP are included in the schedules
accompanying this release.
RESULTS OF OPERATIONS
Net interest income, before the reversal of the provision for
credit losses, for the fourth quarter of 2024 and 2023 was $26.2
million and $23.8 million, respectively, an increase of $2.4
million, or 10.1%. The increase in net interest income resulted
from an increase in interest income of $466,000, or 1.1%, and a
decrease in interest expense of $1.9 million, or 11.4%, compared to
the prior year quarter. The increase in interest income resulted
primarily from a $1.2 million, or 29.9%, increase in interest
income on securities and a $605,000, or 75.6%, increase in interest
income on federal funds sold, and was offset somewhat by a decrease
in loan interest income of $1.3 million, or 3.5%. The decrease in
interest expense resulted primarily from a $1.8 million decrease in
interest paid on FHLB borrowings. Our noninterest-bearing deposits
to total deposits were 31.1% and 32.4% as of December 31, 2024 and
2023, respectively.
Net interest margin, on a fully taxable equivalent (FTE) basis,
for the fourth quarter of 2024 and 2023 was 3.54% and 3.11%,
respectively. The increase of 43 basis points was primarily due to
a 21 basis point increase in interest-earning asset yields and a
decrease of 27 basis points in the cost of interest-bearing
liabilities from the prior year quarter. The increase in yield on
interest-earning assets was primarily due to increases in loan
portfolio yield from 6.06% to 6.42%, or 36 basis points, as well as
a 54 basis point increase in yield on AFS securities during the
period. The decrease in the cost of interest-bearing liabilities
was due primarily to a decrease in the cost of interest-bearing
deposits from 3.17% to 3.07%, a change of 10 basis points, along
with a decrease in the average balance of advances from the FHLB
and fed funds purchased since December 31, 2023.
Net interest income, before the reversal of the provision for
credit losses, increased $2.0 million, or 8.4%, from $24.2 million
in the third quarter of 2024 to $26.2 million for the fourth
quarter of 2024. The increase in net interest income resulted
primarily from an increase in interest income of $829,000, or 2.1%,
combined with a decrease in interest expense of $1.2 million, or
7.4%, compared to the prior quarter.
Net interest margin, on an FTE basis, increased from 3.33% for
the third quarter of 2024 to 3.54% for the fourth quarter of 2024,
an increase of 21 basis points. The increase in net interest
margin, on an FTE basis, was primarily due to a 26 basis point
decrease in rates paid on interest-bearing deposits in the fourth
quarter of 2024 compared to the prior quarter.
We recorded a reversal of the provision for credit losses of
$250,000 during the fourth quarter of 2024, for a total reversal of
provision for credit losses in 2024 of $2.2 million. The reversal
of provision for credit losses resulted from a decline in gross
loan balances of $5.4 million during the fourth quarter and of
$191.4 million for the year ended December 31, 2024, while overall
credit quality trends and economic forecast assumptions remained
relatively stable during the year. As of both December 31, 2024 and
2023, our allowance for credit losses as a percentage of total
loans was 1.33%.
Noninterest income increased $930,000, or 19.4%, for the fourth
quarter of 2024 to $5.7 million, compared to $4.8 million for the
fourth quarter of 2023. The increase from the same quarter in 2023
was primarily due to higher other noninterest income, resulting
partially from a gain of $467,000 on the sale of the commercial ORE
property in Austin, Texas, for which a valuation reserve of
$900,000 had been recorded in the second quarter of 2024. Other
noninterest income also increased due to rental income received
during the fourth quarter from the ORE property sold during the
fourth quarter and from our investment in an apartment/commercial
building in Bryan, Texas which was not present in the prior year
quarter.
Noninterest income for the fourth quarter of 2024 increased by
$572,000, or 11.1%, from $5.2 million in the third quarter of 2024.
The increase was primarily due to an increase in other noninterest
income of $507,000, or 52.0%, resulting from the gain on the sale
of the above mentioned ORE property during the fourth quarter of
2024.
Noninterest expense decreased $1.5 million, or 7.1%, during the
fourth quarter of 2024 to $19.9 million, compared to $21.4 million
for the fourth quarter of 2023. The decrease in noninterest expense
during the fourth quarter of 2024 was driven primarily by a $1.7
million, or 13.1%, decrease in employee compensation and benefits
and a $238,000, or 24.9%, decrease in legal and professional fees
compared to the fourth quarter of 2023. These decreases were
partially offset by a $366,000, or 13.3%, increase in occupancy
expenses in the fourth quarter of 2024 compared to the same period
in 2023. The decrease in employee compensation expense from the
prior quarter is due to primarily to lower officer salaries,
healthcare and bonus costs in the current year quarter. Legal
expense decreased due to fewer loan and other items in the normal
course of business, while the occupancy expense increased primarily
due to depreciation, property taxes and a new lease for our
location in Georgetown, Texas.
Noninterest expense decreased $798,000, or 3.9%, during the
fourth quarter of 2024, from $20.7 million for the quarter ended
September 30, 2024. The decrease resulted primarily from a
$538,000, or 4.6%, decrease in employee compensation and benefits
due to lower healthcare and salary expenses, as well as a $371,000,
or 21.3%, decrease in other noninterest expense. This decrease was
due to $360,000 in additional ORE-related holding costs incurred
during the third quarter that were not present in the fourth
quarter of 2024.
The Company’s efficiency ratio for the fourth quarter of 2024
was 62.23%, compared to 74.81% for the prior year quarter and
70.47% for the third quarter of 2024.
FINANCIAL CONDITION
Consolidated assets for the Company totaled $3.12 billion at
December 31, 2024, compared to $3.10 billion at September 30, 2024
and $3.18 billion at December 31, 2023.
Gross loans decreased by $5.4 million, or 0.3%, during the
quarter resulting in a gross loan balance of $2.13 billion at
December 31, 2024, compared to $2.14 billion at September 30, 2024.
The decline in loans resulted primarily from tighter underwriting
and from lower demand from potential borrowers.
Gross loans decreased $191.4 million, or 8.2%, from $2.32
billion at December 31, 2023. The decrease in gross loans during
the year resulted from tightened credit underwriting standards and
loan terms, strategic non-renewal decisions and fewer borrower
requests in response to higher interest rates and project
costs.
Total deposits increased by $23.3 million, or 0.9%, to $2.69
billion at December 31, 2024, compared to $2.67 billion at
September 30, 2024, and increased $58.9 million, or 2.2%, from
$2.63 billion at December 31, 2023. The increase in deposits during
the fourth quarter of 2024 compared to the third quarter of 2024
was the result of an increase in interest-bearing deposits of $25.4
million, partially offset by a decrease in noninterest-bearing
deposits of $2.1 million. The increase in deposits during the year
resulted primarily from an increase in interest-bearing deposits of
$74.4 million, offset by a decrease in noninterest-bearing deposits
of $15.5 million.
Nonperforming assets as a percentage of total loans were 0.23%
at December 31, 2024, compared to 0.96% at September 30, 2024 and
0.25% at December 31, 2023. Nonperforming assets as a percentage of
total assets were 0.16% at December 31, 2024, compared to 0.66% at
September 30, 2024, and 0.18% at December 31, 2023. The Bank's
nonperforming assets consist primarily of ORE and nonaccrual loans.
The decrease in nonperforming assets compared to the prior quarter
was primarily due to the resolution and sale of an ORE property in
Austin, Texas. There is one remaining single family ORE property
with a book balance of $1.2 million which is expected to be fully
resolved in the first quarter of 2025, with minimal, if any,
expected losses.
Total equity was $319.1 million at December 31, 2024, compared
to $319.3 million at September 30, 2024 and $303.8 million at
December 31, 2023. The decrease in total equity compared to the
prior quarter resulted primarily from an increase in other
comprehensive loss due to unrealized losses on investment
securities of $8.1 million and $2.7 million of dividends paid,
which was offset by net income of $10.0 million. The increase in
total equity from the prior year was primarily due to net earnings
of $31.5 million and was partially offset by $11.0 million in
dividends paid, $6.4 million in treasury stock repurchases and $1.8
million in other comprehensive loss during 2024.
As of
2024
2023
(dollars in thousands)
December 31
September 30
June 30
March 31
December 31
ASSETS
Cash and due from banks
$
47,417
$
50,623
$
45,016
$
43,872
$
47,744
Federal funds sold
94,750
108,350
40,475
24,300
36,575
Interest-bearing deposits
3,797
3,973
4,721
4,921
5,205
Total cash and cash equivalents
145,964
162,946
90,212
73,093
89,524
Securities available for sale
340,304
277,567
242,662
228,787
196,195
Securities held to maturity
334,732
341,911
347,992
363,963
404,208
Loans held for sale
143
770
871
874
976
Loans, net
2,102,565
2,107,597
2,185,247
2,234,012
2,290,881
Accrued interest receivable
12,016
10,927
12,397
11,747
13,143
Premises and equipment, net
56,010
56,964
57,475
56,921
57,018
Other real estate owned
1,184
15,184
15,184
14,900
—
Cash surrender value of life insurance
42,883
42,623
42,369
42,119
42,348
Core deposit intangible, net
994
1,100
1,206
1,312
1,418
Goodwill
32,160
32,160
32,160
32,160
32,160
Other assets
46,599
47,356
53,842
67,550
56,920
Total assets
$
3,115,554
$
3,097,105
$
3,081,617
$
3,127,438
$
3,184,791
LIABILITIES AND EQUITY
Deposits
Noninterest-bearing
$
837,432
$
839,567
$
820,430
$
828,861
$
852,957
Interest-bearing
1,854,735
1,829,347
1,805,732
1,798,983
1,780,289
Total deposits
2,692,167
2,668,914
2,626,162
2,627,844
2,633,246
Securities sold under agreements to
repurchase
31,075
31,164
25,173
39,058
25,172
Accrued interest and other liabilities
31,320
33,849
32,860
33,807
32,242
Line of credit
—
—
—
—
4,500
Federal Home Loan Bank advances
—
—
45,000
75,000
140,000
Subordinated debentures
41,918
43,885
43,852
45,819
45,785
Total liabilities
2,796,480
2,777,812
2,773,047
2,821,528
2,880,945
Equity attributable to Guaranty
Bancshares, Inc.
318,498
318,784
308,043
305,371
303,300
Noncontrolling interest
576
509
527
539
546
Total equity
319,074
319,293
308,570
305,910
303,846
Total liabilities and equity
$
3,115,554
$
3,097,105
$
3,081,617
$
3,127,438
$
3,184,791
Quarter Ended
2024
2023
(dollars in thousands, except per share
data)
December 31
September 30
June 30
March 31
December 31
STATEMENTS OF EARNINGS
Interest income
$
41,262
$
40,433
$
40,713
$
40,752
$
40,796
Interest expense
15,041
16,242
16,833
17,165
16,983
Net interest income
26,221
24,191
23,880
23,587
23,813
Reversal of provision for credit
losses
(250
)
(500
)
(1,200
)
(250
)
—
Net interest income after reversal of
provision for credit losses
26,471
24,691
25,080
23,837
23,813
Noninterest income
5,726
5,154
4,599
5,258
4,796
Noninterest expense
19,880
20,678
20,602
20,692
21,402
Income before income taxes
12,317
9,167
9,077
8,403
7,207
Income tax provision
2,309
1,788
1,654
1,722
1,341
Net earnings
$
10,008
$
7,379
$
7,423
$
6,681
$
5,866
Net loss attributable to noncontrolling
interest
9
18
12
7
12
Net earnings attributable to Guaranty
Bancshares, Inc.
$
10,017
$
7,397
$
7,435
$
6,688
$
5,878
PER COMMON SHARE DATA
Earnings per common share, basic
$
0.88
$
0.65
$
0.65
$
0.58
$
0.51
Earnings per common share, diluted
0.87
0.65
0.65
0.58
0.51
Cash dividends per common share
0.24
0.24
0.24
0.24
0.23
Book value per common share - end of
quarter
27.86
27.94
26.98
26.47
26.28
Tangible book value per common share - end
of quarter(1)
24.96
25.03
24.06
23.57
23.37
Common shares outstanding - end of
quarter(2)
11,431,568
11,408,908
11,417,270
11,534,960
11,540,644
Weighted-average common shares
outstanding, basic
11,422,063
11,383,027
11,483,091
11,539,167
11,536,878
Weighted-average common shares
outstanding, diluted
11,490,834
11,443,324
11,525,504
11,598,239
11,589,165
PERFORMANCE RATIOS
Return on average assets (annualized)
1.27
%
0.96
%
0.95
%
0.85
%
0.73
%
Return on average equity (annualized)
12.68
9.58
9.91
8.93
7.93
Net interest margin, fully taxable
equivalent (annualized)(3)
3.54
3.33
3.26
3.16
3.11
Efficiency ratio(4)
62.23
70.47
72.34
71.74
74.81
(1) See Non-GAAP Reconciling Tables.
(2) Excludes the dilutive effect, if any,
of shares of common stock issuable upon exercise of outstanding
stock options.
(3) Net interest margin on a fully taxable
equivalent basis is equal to net interest income adjusted for
nontaxable income divided by average interest-earning assets, using
a marginal tax rate of 21%.
(4) The efficiency ratio was calculated by
dividing total noninterest expense by net interest income plus
noninterest income, excluding securities gains or losses. Taxes are
not part of this calculation.
For the Years Ended
December 31,
(dollars in thousands, except per share
data)
2024
2023
STATEMENTS OF EARNINGS
Interest income
$
163,160
$
156,492
Interest expense
65,281
59,512
Net interest income
97,879
96,980
Reversal of provision for credit
losses
(2,200
)
—
Net interest income after reversal of
provision for credit losses
100,079
96,980
Noninterest income
20,737
22,513
Noninterest expense
81,852
82,354
Income before income taxes
38,964
37,139
Income tax provision
7,473
7,130
Net earnings
$
31,491
$
30,009
Net loss attributable to noncontrolling
interest
46
28
Net earnings attributable to Guaranty
Bancshares, Inc.
$
31,537
$
30,037
PER COMMON SHARE DATA
Earnings per common share, basic
$
2.75
$
2.57
Earnings per common share, diluted
2.74
2.56
Cash dividends per common share
0.96
0.92
Book value per common share - end of
period
27.86
26.28
Tangible book value per common share - end
of period(1)
24.96
23.37
Common shares outstanding - end of
period(2)
11,431,568
11,540,644
Weighted-average common shares
outstanding, basic
11,456,540
11,693,761
Weighted-average common shares
outstanding, diluted
11,502,683
11,738,605
PERFORMANCE RATIOS
Return on average assets
1.01
%
0.92
%
Return on average equity
10.30
10.10
Net interest margin, fully taxable
equivalent(3)
3.32
3.15
Efficiency ratio(4)
69.01
68.92
(1) See Non-GAAP Reconciling Tables.
(2) Excludes the dilutive effect, if any,
of shares of common stock issuable upon exercise of outstanding
stock options.
(3) Net interest margin on a fully taxable
equivalent basis is equal to net interest income adjusted for
nontaxable income divided by average interest-earning assets,
annualized, using a marginal tax rate of 21%.
(4) The efficiency ratio was calculated by
dividing total noninterest expense by net interest income plus
noninterest income, excluding securities gains or losses. Taxes are
not part of this calculation.
As of
2024
2023
(dollars in thousands)
December 31
September 30
June 30
March 31
December 31
LOAN PORTFOLIO COMPOSITION
Commercial and industrial
$
254,702
$
245,738
$
264,058
$
269,560
$
287,565
Real estate:
Construction and development
218,617
213,014
231,053
273,300
296,639
Commercial real estate
866,684
866,112
899,120
906,684
923,195
Farmland
147,191
169,116
180,126
180,502
186,295
1-4 family residential
529,006
524,245
526,650
523,573
514,603
Multi-family residential
51,538
54,158
47,507
44,569
44,292
Consumer
51,394
52,530
53,642
54,375
57,059
Agricultural
11,726
11,293
12,506
12,418
12,685
Overdrafts
279
331
335
276
243
Total loans(1)(2)
$
2,131,137
$
2,136,537
$
2,214,997
$
2,265,257
$
2,322,576
Quarter Ended
2024
2023
(dollars in thousands)
December 31
September 30
June 30
March 31
December 31
ALLOWANCE FOR CREDIT LOSSES
Balance at beginning of period
$
28,543
$
29,282
$
30,560
$
30,920
$
31,140
Loans charged-off
(281
)
(272
)
(115
)
(310
)
(242
)
Recoveries
278
33
37
200
22
Reversal of provision for credit
losses
(250
)
(500
)
(1,200
)
(250
)
—
Balance at end of period
$
28,290
$
28,543
$
29,282
$
30,560
$
30,920
Allowance for credit losses / period-end
loans
1.33
%
1.34
%
1.32
%
1.35
%
1.33
%
Allowance for credit losses /
nonperforming loans
758.6
560.2
470.4
496.0
552.9
Net charge-offs / average loans
(annualized)
0.00
0.04
0.01
0.02
0.04
NONPERFORMING ASSETS
Nonaccrual loans
$
3,729
$
5,095
$
6,225
$
6,161
$
5,592
Other real estate owned
1,184
15,184
15,184
14,900
—
Repossessed assets owned
22
154
331
236
234
Total nonperforming assets
$
4,935
$
20,433
$
21,740
$
21,297
$
5,826
Nonaccrual loans as a percentage of total
loans(1)(2)
0.17
%
0.24
%
0.28
%
0.27
%
0.24
%
Nonperforming assets as a percentage
of:
Total loans(1)(2)
0.23
%
0.96
%
0.98
%
0.94
%
0.25
%
Total assets
0.16
0.66
0.71
0.68
0.18
(1) Excludes outstanding balances of loans
held for sale of $143,000, $770,000, $871,000, $874,000, and
$976,000 as of December 31, September 30, June 30 and March 31,
2024, and December 31, 2023, respectively.
(2) Excludes deferred loan fees of
$282,000, $397,000, $468,000, $685,000, and $775,000 as of December
31, September 30, June 30 and March 31, 2024, and December 31,
2023, respectively.
Quarter Ended
2024
2023
(dollars in thousands)
December 31
September 30
June 30
March 31
December 31
NONINTEREST INCOME
Service charges
$
1,142
$
1,165
$
1,098
$
1,069
$
1,123
Net realized gain on sale of loans
240
252
227
272
196
Fiduciary and custodial income
661
542
657
649
624
Bank-owned life insurance income
258
255
250
251
249
Merchant and debit card fees
1,775
1,817
2,122
1,706
1,760
Loan processing fee income
131
102
136
118
116
Mortgage fee income
37
46
43
41
30
Other noninterest income
1,482
975
66
1,152
698
Total noninterest income
$
5,726
$
5,154
$
4,599
$
5,258
$
4,796
NONINTEREST EXPENSE
Employee compensation and benefits
$
11,048
$
11,586
$
11,723
$
12,437
$
12,715
Occupancy expenses
3,123
3,026
2,924
2,747
2,757
Legal and professional fees
716
775
841
772
954
Software and technology
1,733
1,649
1,653
1,642
1,740
Amortization
142
142
142
143
145
Director and committee fees
185
188
198
200
186
Advertising and promotions
267
239
208
169
352
ATM and debit card expense
819
791
785
609
763
Telecommunication expense
153
178
159
173
175
FDIC insurance assessment fees
320
359
365
360
321
Other noninterest expense
1,374
1,745
1,604
1,440
1,294
Total noninterest expense
$
19,880
$
20,678
$
20,602
$
20,692
$
21,402
Quarter Ended December
31,
2024
2023
(dollars in thousands)
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
ASSETS
Interest-earning assets:
Total loans(1)
$
2,126,414
$
34,319
6.42
%
$
2,329,227
$
35,573
6.06
%
Securities available for sale
332,903
3,185
3.81
187,119
1,540
3.27
Securities held to maturity
338,296
2,218
2.61
406,553
2,619
2.56
Nonmarketable equity securities
19,173
135
2.80
26,314
264
3.98
Interest-bearing deposits in other
banks
115,669
1,405
4.83
56,207
800
5.65
Total interest-earning assets
2,932,455
41,262
5.60
3,005,420
40,796
5.39
Allowance for credit losses
(28,511
)
(30,996
)
Noninterest-earning assets
225,152
223,204
Total assets
$
3,129,096
$
3,197,628
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing deposits
$
1,855,713
$
14,301
3.07
%
$
1,788,863
$
14,311
3.17
%
Advances from FHLB and fed funds
purchased
6,522
85
5.18
140,761
1,915
5.40
Line of credit
—
—
—
4,255
95
8.86
Subordinated debt
42,570
513
4.79
46,438
534
4.56
Securities sold under agreements to
repurchase
29,959
142
1.89
23,860
128
2.13
Total interest-bearing liabilities
1,934,764
15,041
3.09
2,004,177
16,983
3.36
Noninterest-bearing liabilities:
Noninterest-bearing deposits
842,655
865,817
Accrued interest and other liabilities
37,308
33,496
Total noninterest-bearing liabilities
879,963
899,313
Equity
314,369
294,138
Total liabilities and equity
$
3,129,096
$
3,197,628
Net interest rate spread(2)
2.51
%
2.03
%
Net interest income
$
26,221
$
23,813
Net interest margin(3)
3.56
%
3.14
%
Net interest margin, fully taxable
equivalent(4)
3.54
%
3.11
%
(1) Includes average outstanding balances
of loans held for sale of $820,000 and $799,000 for the quarter
ended December 31, 2024 and 2023, respectively.
(2) Net interest spread is the average
yield on interest-earning assets minus the average rate on
interest-bearing liabilities.
(3) Net interest margin is equal to net
interest income divided by average interest-earning assets,
annualized.
(4) Net interest margin on a fully taxable
equivalent basis is equal to net interest income adjusted for
nontaxable income divided by average interest-earning assets,
annualized, using a marginal tax rate of 21%.
Year Ended December
31,
2024
2023
(dollars in thousands)
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
ASSETS
Interest-earning assets:
Total loans(1)
$
2,207,359
$
139,434
6.32
%
$
2,352,154
$
136,086
5.79
%
Securities available for sale
264,683
9,787
3.70
182,277
5,159
2.83
Securities held to maturity
358,418
9,325
2.60
449,097
11,210
2.50
Nonmarketable equity securities
21,536
857
3.98
27,371
1,288
4.71
Interest-bearing deposits in other
banks
71,673
3,757
5.24
51,507
2,749
5.34
Total interest-earning assets
2,923,669
163,160
5.58
3,062,406
156,492
5.11
Allowance for credit losses
(29,720
)
(31,601
)
Noninterest-earning assets
232,391
220,230
Total assets
$
3,126,340
$
3,251,035
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing deposits
$
1,815,672
$
58,827
3.24
%
$
1,698,758
$
44,981
2.65
%
Advances from FHLB and fed funds
purchased
64,699
3,498
5.41
226,214
11,626
5.14
Line of credit
275
24
8.73
4,168
363
8.71
Subordinated debt
44,175
2,047
4.63
47,873
2,143
4.48
Securities sold under agreements to
repurchase
37,386
885
2.37
20,635
399
1.93
Total interest-bearing liabilities
1,962,207
65,281
3.33
1,997,648
59,512
2.98
Noninterest-bearing liabilities:
Noninterest-bearing deposits
821,291
924,945
Accrued interest and other liabilities
36,672
30,924
Total noninterest-bearing liabilities
857,963
955,869
Equity
306,170
297,518
Total liabilities and equity
$
3,126,340
$
3,251,035
Net interest rate spread(2)
2.25
%
2.13
%
Net interest income
$
97,879
$
96,980
Net interest margin(3)
3.35
%
3.17
%
Net interest margin, fully taxable
equivalent(4)
3.32
%
3.15
%
(1) Includes average outstanding balances
of loans held for sale of $806,000 and $1.2 million for the years
ended December 31, 2024 and 2023, respectively.
(2) Net interest spread is the average
yield on interest-earning assets minus the average rate on
interest-bearing liabilities.
(3) Net interest margin is equal to net
interest income divided by average interest-earning assets.
(4) Net interest margin on a fully taxable
equivalent basis is equal to net interest income adjusted for
nontaxable income divided by average interest-earning assets, using
a marginal tax rate of 21%.
NON-GAAP RECONCILING TABLES
Tangible Book Value per Common Share
As of
2024
2023
(dollars in thousands, except per share
data)
December 31
September 30
June 30
March 31
December 31
Equity attributable to Guaranty
Bancshares, Inc.
$
318,498
$
318,784
$
308,043
$
305,371
$
303,300
Adjustments:
Goodwill
(32,160
)
(32,160
)
(32,160
)
(32,160
)
(32,160
)
Core deposit intangible, net
(994
)
(1,100
)
(1,206
)
(1,312
)
(1,418
)
Total tangible common equity attributable
to Guaranty Bancshares, Inc.
$
285,344
$
285,524
$
274,677
$
271,899
$
269,722
Common shares outstanding(1)
11,431,568
11,408,908
11,417,270
11,534,960
11,540,644
Book value per common share
$
27.86
$
27.94
$
26.98
$
26.47
$
26.28
Tangible book value per common
share(1)
24.96
25.03
24.06
23.57
23.37
(1) Excludes the dilutive effect, if any,
of shares of common stock issuable upon exercise of outstanding
stock options.
Net Unrealized Loss on Securities, Tax Effected, as a
Percentage of Total Equity
(dollars in thousands)
December 31, 2024
Total equity(1)
$
319,074
Less: net unrealized loss on HTM
securities, tax effected
(24,875
)
Total equity, including net unrealized
loss on AFS and HTM securities
$
294,199
Net unrealized loss on AFS securities, tax
effected
16,398
Net unrealized loss on HTM securities, tax
effected
24,875
Net unrealized loss on AFS and HTM
securities, tax effected
$
41,273
Net unrealized loss on securities as % of
total equity(1)
12.9
%
Total equity before impact of unrealized
losses
$
335,472
Net unrealized loss on securities as % of
total equity before impact of unrealized losses
12.3
%
Total average assets
$
3,129,096
Total equity to average assets
10.2
%
Total equity, adjusted for tax effected
net unrealized loss, to average assets
9.4
%
(1) Includes the net unrealized loss on
AFS securities of $16.4 million, tax effected.
Cost of Total Deposits
Quarter Ended
Year Ended
(dollars in thousands)
December 31, 2024
September 30, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Total average interest-bearing
deposits
$
1,855,713
$
1,821,395
$
1,788,863
$
1,815,672
$
1,698,758
Adjustments:
Noninterest-bearing deposits
842,655
800,573
865,817
821,291
924,945
Total average deposits
$
2,698,368
$
2,621,968
$
2,654,680
$
2,636,963
$
2,623,703
Total deposit-related interest expense
$
14,301
$
15,243
$
14,311
$
58,827
$
44,981
Average cost of interest-bearing
deposits
3.07
%
3.33
%
3.17
%
3.24
%
2.65
%
Average cost of total deposits
2.11
%
2.31
%
2.14
%
2.23
%
1.71
%
About Non-GAAP Financial Measures
Certain of the financial measures and ratios we present,
including “tangible book value per common share,” “net unrealized
loss on securities, tax effected, as a percentage of total equity”
and “cost of total deposits” are supplemental measures that are not
required by, or are not presented in accordance with, U.S.
generally accepted accounting principles (GAAP). We refer to these
financial measures and ratios as “non-GAAP financial measures.” We
consider the use of select non-GAAP financial measures and ratios
to be useful for financial and operational decision making and
useful in evaluating period-to-period comparisons. We believe that
these non-GAAP financial measures provide meaningful supplemental
information regarding our performance by excluding certain
expenditures or assets that we believe are not indicative of our
primary business operating results or by presenting certain metrics
on a fully taxable equivalent basis. We believe that management and
investors benefit from referring to these non-GAAP financial
measures in assessing our performance and when planning,
forecasting, analyzing and comparing past, present and future
periods.
These non-GAAP financial measures should not be considered a
substitute for financial information presented in accordance with
GAAP and you should not rely on non-GAAP financial measures alone
as measures of our performance. The non-GAAP financial measures we
present may differ from non-GAAP financial measures used by our
peers or other companies. We compensate for these limitations by
providing the equivalent GAAP measures whenever we present the
non-GAAP financial measures and by including a reconciliation of
the impact of the components adjusted for in the non-GAAP financial
measure so that both measures and the individual components may be
considered when analyzing our performance.
A reconciliation of non-GAAP financial measures to the
comparable GAAP financial measures is included at the end of the
financial statement tables.
Conference Call Information
The Company will hold a conference call to discuss fourth
quarter and year-end 2024 financial results on Tuesday, January 21,
2025 at 10:00 am Central Time. The conference call will be hosted
by Ty Abston, Chairman and CEO, and Shalene Jacobson, EVP and CFO.
All conference attendees must register before the call at
www.gnty.com/earningscall. The conference materials will be
available by accessing the Investor Relations page on our website,
www.gnty.com. A recording of the conference call will be available
by 1:00 pm Central Time the day of the call and remain available
through January 31, 2025 on our Investor Relations webpage.
About Guaranty Bancshares, Inc.
Guaranty Bancshares, Inc. is the parent company for Guaranty
Bank & Trust, N.A. Guaranty Bank & Trust has 33 banking
locations across 26 Texas communities located within the East
Texas, Dallas/Fort Worth, Houston and Central Texas regions of the
state. As of December 31, 2024, Guaranty Bancshares, Inc. had total
assets of $3.1 billion, total loans of $2.1 billion and total
deposits of $2.7 billion. Visit www.gnty.com for more
information.
Cautionary Statement Regarding Forward-Looking
Information
This communication contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements reflect our current views
with respect to, among other things, future events and our results
of operations, financial condition and financial performance. These
statements are often, but not always, made through the use of words
or phrases such as “may,” “should,” “could,” “predict,”
“potential,” “believe,” “will likely result,” “expect,” “continue,”
“will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,”
“projection,” “would” and “outlook,” or the negative version of
those words or other comparable words of a future or
forward-looking nature. These forward-looking statements are not
historical facts, and are based on current expectations, estimates
and projections about our industry, management’s beliefs and
certain assumptions made by management, many of which, by their
nature, are inherently uncertain and beyond our control.
Accordingly, we caution you that any such forward-looking
statements are not guarantees of future performance and are subject
to risks, assumptions and uncertainties that are difficult to
predict. Although we believe that the expectations reflected in
these forward-looking statements are reasonable as of the date
made, actual results may prove to be materially different from the
results expressed or implied by the forward-looking statements.
Such factors include, without limitation, the “Risk Factors”
referenced in our most recent Annual Report on Form 10-K and any
subsequent Quarterly Reports on Form 10-Q, and other risks and
uncertainties listed from time to time in our reports and documents
filed with the Securities and Exchange Commission. We can give no
assurance that any goal or plan or expectation set forth in
forward-looking statements can be achieved and readers are
cautioned not to place undue reliance on such statements. The
forward-looking statements are made as of the date of this
communication, and we do not intend, and assume no obligation, to
update any forward-looking statement to reflect events or
circumstances after the date on which the statement is made or to
reflect the occurrence of unanticipated events or circumstances,
except as required by applicable law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250121562068/en/
Shalene Jacobson Executive Vice President and Chief Financial
Officer Guaranty Bancshares, Inc. (888) 572-9881
investors@gnty.com
Guaranty Bancshares (NYSE:GNTY)
Historical Stock Chart
From Dec 2024 to Jan 2025
Guaranty Bancshares (NYSE:GNTY)
Historical Stock Chart
From Jan 2024 to Jan 2025
