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 ended
September 30, 2024. The Company's net income available to common
shareholders was $7.4 million, or $0.65 per basic share, for the
quarter ended September 30, 2024, compared to $7.4 million, or
$0.65 per basic share, for the quarter ended June 30, 2024 and $6.3
million, or $0.54 per basic share, for the quarter ended September
30, 2023. Return on average assets and average equity for the third
quarter of 2024 were 0.96% and 9.58%, respectively, compared to
0.95% and 9.91%, respectively, for the second quarter of 2024 and
0.78% and 8.43%, respectively, for the third quarter of 2023. The
increase in earnings during the third quarter of 2024 compared to
the third quarter of 2023 was primarily due to an increase in net
interest income of $889,000, or 3.8%, along with a reverse
provision for credit losses of $500,000 during the third quarter of
2024 compared to no provision during the prior year quarter.
"Our earnings and margin results were good in the third quarter
and continue to show improvement as the Fed begins to lower
interest rates. Net interest margin is now at 3.33%, up 7 basis
points from the prior quarter and 31 basis points from the third
quarter of 2023. We continue to position our balance sheet to take
advantage of possible loan growth and other opportunities when
economic conditions improve and interest rates continue to fall.
Deposit balances increased during the quarter, we purchased
additional higher yielding AFS securities and we repaid the
remaining $45.0 million in FHLB advances. We believe credit quality
remains strong with very low past-dues and charge-offs.
Non-performing assets should also be very low by year-end as we
anticipate resolutions for the ORE on our balance sheet. Our
capital and liquidity levels are solid and will leave us well
positioned to drive positive strategic objectives and obtain
favorable results for shareholders for the remainder of 2024 and
2025," said Ty Abston, the Company's Chairman and Chief Executive
Officer.
QUARTERLY HIGHLIGHTS
- Improvement in NIM and Stable Earnings.
Net interest margin, on a fully taxable equivalent basis, continued
to improve in the third quarter, increasing to 3.33%, compared to
3.26% in the second quarter and 3.02% in the prior year quarter.
Earnings were fairly consistent with the prior quarter, showing
improvements in net interest income, non-interest income and
employee and compensation expenses, which were slightly offset by a
lower reverse provision for credit losses and higher provision for
income taxes in the third quarter. The net interest income
improvements resulted primarily from a decrease in interest bearing
liability costs, while earning assets have continued to reprice
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. This strategy
positions us to be on the offense when we believe strong
opportunities for growth or M&A are presented. Our capital and
liquidity ratios, as well as contingent liquidity sources, remain
very healthy. During the third quarter of 2024, we repurchased
59,996 shares of our common stock, or 0.53% of our average shares
outstanding during the period, at an average price of $30.65 per
share. Our liquidity ratio, calculated as cash and cash equivalents
and unpledged investments divided by total liabilities, was 17.1%
as of September 30, 2024, compared to 14.0% as of September 30,
2023. Our total available contingent liquidity, net of current
outstanding borrowings, was $1.4 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
September 30, 2024 was 10.4%. 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 9.8%†, which we believe
represents a strong capital level under regulatory
requirements.
- Good Asset Quality. Overall credit
quality remains strong and the expected losses on deteriorating
credits are low due to the Bank's equity position and/or strong
guarantor support. Nonperforming assets as a percentage of total
assets were 0.66% at September 30, 2024, compared to 0.71% at June
30, 2024 and 0.09% at September 30, 2023. Net charge-offs
(annualized) to average loans were 0.04% for the quarter ended
September 30, 2024, compared to 0.01% for the quarter ended June
30, 2024, and 0.11% for the quarter ended September 30, 2023. There
was a reverse provision to the allowance for credit losses of
$500,000 during the third quarter, in addition to the $1.45 million
reverse provision during the first half of the year. Changes to
historical and qualitative factors have been minimal during the
first three quarters of 2024, therefore the decrease in the
allowance for credit losses was due primarily to the decreases in
outstanding loan balances of $186.0 million, or 8.0%, since January
1, 2024, which were partially offset by an increase in special
mention loans during the same period as we continue to work with a
relatively small number of stressed borrowers. Nonperforming assets
consist of both nonaccrual loans and other real estate owned (ORE).
Nonaccrual loans represented 0.24% of total outstanding loan
balances as of September 30, 2024 and consisted primarily of
smaller dollar consumer and small business loans. ORE consisted of
two real estate properties, both of which we expect to resolve and
sell in the fourth quarter of 2024 with minimal, if any, losses.
Nonaccrual loans represented 0.28% and 0.12% of total outstanding
loan balances as of June 30, 2024 and September 30, 2023,
respectively.
- Granular and Consistent Core Deposit Base. As of
September 30, 2024, we have 89,878 total deposit accounts with an
average account balance of $29,695. We have a historically reliable
core deposit base, with strong and trusted banking relationships.
Total deposits increased by $42.8 million during the third quarter.
DDA and time deposit balances increased $19.2 million and $24.5
million, respectively, while savings and MMDA balances decreased
$965,000 during the third quarter of 2024. Excluding public funds
and Bank-owned accounts, our uninsured deposits as of September 30,
2024 were 26.3% of total deposits. Interest rates paid on deposits
during the quarter stabilized with minimal increases.
Noninterest-bearing deposits represent 31.5% of total deposits as
of September 30, 2024. Our cost of interest-bearing deposits
increased one basis point during the quarter from 3.32% in the
prior quarter to 3.33%. This increase was primarily due to renewals
of maturing certificates of deposit into new CDs paying higher
rates, although current CD rate offerings were recently lowered
late in the quarter. Our cost of total deposits for the third
quarter of 2024 increased three basis points from 2.28% in the
prior quarter to 2.31%†.
† 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 third quarter of 2024 and 2023 was $24.2
million and $23.3 million, respectively, an increase of $889,000,
or 3.8%. The increase in net interest income resulted from an
increase in interest income of $615,000, or 1.5%, combined with a
decrease in interest expense of $274,000, or 1.7%, compared to the
prior year quarter. The increase in interest income resulted
primarily from a $670,000, or 16.5%, increase in interest income on
securities and a $205,000, or 29.6%, increase in interest income
received from Federal funds sold and interest-bearing deposits. The
decrease in interest expense resulted primarily from a $2.3 million
and $808,000 decrease in interest paid on FHLB borrowings and
brokered deposits, respectively. These decreases were partially
offset by a $2.6 million increase in interest paid on CD accounts
during the third quarter of 2024 compared to the same period of the
prior year. Our noninterest-bearing deposits to total deposits were
31.5% and 34.0% as of September 30, 2024 and 2023,
respectively.
Net interest margin, on a fully taxable equivalent basis, for
the third quarter of 2024 and 2023 was 3.33% and 3.02%,
respectively. Net interest margin, on a fully taxable equivalent
basis, increased 31 basis points primarily due to a 40 basis point
increase in interest-earning asset yields partially offset by an
increase of eight 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 yield on
the loan portfolio from 5.91% to 6.35%, or 44 basis points, as well
as 82 and 10 basis point increases in yield on AFS and HTM
securities, respectively, during the period. The increase in the
cost of interest-bearing liabilities was due primarily to an
increase in the cost of interest-bearing deposits from 3.00% to
3.33%, a change of 33 basis points, since September 30, 2023.
Net interest income, before the reversal of the provision for
credit losses, increased $311,000, or 1.3%, from $23.9 million in
the second quarter of 2024 to $24.2 million for the third quarter
of 2024. The increase in net interest income resulted primarily
from a larger decrease in interest expense of $591,000, or 3.5%,
compared to the decrease in interest income of $280,000, or 0.7%,
from the prior quarter.
Net interest margin, on a fully taxable equivalent basis,
increased from 3.26% for the second quarter of 2024 to 3.33% for
the third quarter of 2024, an increase of seven basis points. The
increase in net interest margin, on a fully taxable equivalent
basis, was primarily due to a one basis point increase in the yield
earned on interest-earning assets, further improved by a seven
basis point decrease in rates on interest-bearing liabilities. The
increase in yield was primarily due to an increase in loan yields
from 6.29% for the second quarter of 2024 to 6.35% for the third
quarter of 2024, a change of six basis points, partially offset by
decreases in yield on all other interest-earning assets for a net
increase of one basis point in yields on interest-earning assets.
This increase was improved by a decrease in interest-bearing
liabilities of seven basis points since June 30, 2024.
We recorded a reverse provision for credit losses of $500,000
during the third quarter of 2024, and $1.2 million and $250,000 of
reverse provisions during the second and first quarters of 2024,
respectively. The reverse provisions resulted from a decline in
gross loan balances of $78.5 million during the third quarter and
of $186.0 million year to date, while overall credit quality trends
and economic forecast assumptions remained relatively stable. As of
September 30, 2024 and December 31, 2023, our allowance for credit
losses as a percentage of total loans was 1.34% and 1.33%,
respectively.
Noninterest income increased $215,000, or 4.4%, during the third
quarter of 2024 to $5.2 million, compared to $4.9 million for the
third quarter of 2023. The increase from the same quarter in 2023
was primarily due to rental income received during the quarter.
Noninterest income for the third quarter of 2024 increased by
$555,000, or 12.1%, from $4.6 million in the second quarter of
2024. The increase was primarily due to an increase in other
noninterest income of $909,000, or 1377.3%, primarily the result of
a $900,000 ORE valuation allowance during the second quarter of
2024. This was partially offset by a $305,000, or 14.4%, decrease
in merchant and debit card fees due to an annual payment from our
third party processing vendor during the second quarter of
2024.
Noninterest expense increased $164,000, or 0.8%, during the
third quarter of 2024 to $20.7 million, compared to $20.5 million
for the third quarter of 2023. The increase in noninterest expense
during the third quarter of 2024 was driven primarily by an
increase in other noninterest expense of $498,000, or 39.9%, due to
$642,000 in ORE-related holding costs during the current quarter,
which was partially offset by a $358,000, or 3.0%, decrease in
employee compensation and benefits and a $127,000, or 14.1%,
decrease in legal and professional fees compared to the third
quarter of 2023.
Noninterest expense increased $76,000, or 0.4%, during the third
quarter of 2024, from $20.6 million for the quarter ended June 30,
2024. The increase resulted primarily from a $141,000, or 8.8%,
increase in other noninterest expense due to $642,000 in
ORE-related holding costs during the current quarter. Additionally,
the Bank saw a $102,000, or 3.5%, increase in occupancy expenses
during the third quarter of 2024 compared to the second quarter of
2024. These increases were partially offset by a $137,000, or 1.2%,
decrease in employee compensation and benefits.
The Company’s efficiency ratio for the third quarter of 2024 was
70.47%, compared to 72.64% for the prior year quarter and 72.34%
for the second quarter of 2024.
FINANCIAL CONDITION
Consolidated assets for the Company totaled $3.10 billion at
September 30, 2024, compared to $3.08 billion at June 30, 2024 and
$3.23 billion at September 30, 2023.
Gross loans decreased by $78.5 million, or 3.5%, during the
quarter resulting in a gross loan balance of $2.14 billion at
September 30, 2024, compared to $2.21 billion at June 30, 2024. Our
decline in loans resulted primarily from tighter underwriting,
strategic non-renewal decisions and from lower demand from
potential borrowers.
Gross loans decreased $181.7 million, or 7.8%, from $2.32
billion at September 30, 2023. The decrease in gross loans during
the third quarter of 2024 compared to the third quarter of 2023
resulted from tightened credit underwriting standards and loan
terms, along with fewer borrower requests in response to higher
interest rates and project costs.
Total deposits increased by $42.8 million, or 1.6%, to $2.67
billion at September 30, 2024, compared to $2.63 billion at June
30, 2024, and increased $10.6 million, or 0.4%, from $2.66 billion
at September 30, 2023. The increase in deposits during the third
quarter of 2024 compared to the second quarter of 2024 was the
result of an increase in noninterest-bearing and interest-bearing
deposits of $19.1 million and $23.6 million, respectively. The
increase in deposits during the current quarter compared to the
prior year quarter resulted primarily from an increase in
interest-bearing deposits of $74.4 million, offset by a decrease in
noninterest-bearing deposits of $63.8 million.
Nonperforming assets as a percentage of total loans were 0.96%
at September 30, 2024, compared to 0.98% at June 30, 2024 and 0.13%
at September 30, 2023. Nonperforming assets as a percentage of
total assets were 0.66% at September 30, 2024, compared to 0.71% at
June 30, 2024, and 0.09% at September 30, 2023. The Bank's
nonperforming assets consist primarily of ORE and nonaccrual loans.
The increase in nonperforming assets compared to the prior year
quarter was primarily due to the acquisition of ORE, which is
expected to be fully resolved by year-end.
Total equity was $319.3 million at September 30, 2024, compared
to $308.6 million at June 30, 2024 and $296.8 million at September
30, 2023. The increase in total equity compared to the prior
quarter and prior year quarter resulted primarily from net income
of $7.4 million during the third quarter and from a positive shift
in our net unrealized losses on securities compared to the prior
periods. The increases in equity were somewhat offset by the
payment of dividends and by the repurchase of stock totaling $1.8
million during the third quarter of 2024, $4.1 million during the
second quarter of 2024 and $1.7 million during the third quarter of
2023.
As of
2024
2023
(dollars in thousands)
September 30
June 30
March 31
December 31
September 30
ASSETS
Cash and due from banks
$
50,623
$
45,016
$
43,872
$
47,744
$
47,922
Federal funds sold
108,350
40,475
24,300
36,575
73,275
Interest-bearing deposits
3,973
4,721
4,921
5,205
8,980
Total cash and cash equivalents
162,946
90,212
73,093
89,524
130,177
Securities available for sale
277,567
242,662
228,787
196,195
178,644
Securities held to maturity
341,911
347,992
363,963
404,208
408,308
Loans held for sale
770
871
874
976
2,506
Loans, net
2,107,597
2,185,247
2,234,012
2,290,881
2,286,163
Accrued interest receivable
10,927
12,397
11,747
13,143
11,307
Premises and equipment, net
56,964
57,475
56,921
57,018
56,712
Other real estate owned
15,184
15,184
14,900
—
—
Cash surrender value of life insurance
42,623
42,369
42,119
42,348
42,096
Core deposit intangible, net
1,100
1,206
1,312
1,418
1,524
Goodwill
32,160
32,160
32,160
32,160
32,160
Other assets
47,356
53,842
67,550
56,920
80,816
Total assets
$
3,097,105
$
3,081,617
$
3,127,438
$
3,184,791
$
3,230,413
LIABILITIES AND EQUITY
Deposits
Noninterest-bearing
$
839,567
$
820,430
$
828,861
$
852,957
$
903,391
Interest-bearing
1,829,347
1,805,732
1,798,983
1,780,289
1,754,902
Total deposits
2,668,914
2,626,162
2,627,844
2,633,246
2,658,293
Securities sold under agreements to
repurchase
31,164
25,173
39,058
25,172
19,366
Accrued interest and other liabilities
33,849
32,860
33,807
32,242
31,218
Line of credit
—
—
—
4,500
2,000
Federal Home Loan Bank advances
—
45,000
75,000
140,000
175,000
Subordinated debentures
43,885
43,852
45,819
45,785
47,752
Total liabilities
2,777,812
2,773,047
2,821,528
2,880,945
2,933,629
Equity attributable to Guaranty
Bancshares, Inc.
318,784
308,043
305,371
303,300
296,226
Noncontrolling interest
509
527
539
546
558
Total equity
319,293
308,570
305,910
303,846
296,784
Total liabilities and equity
$
3,097,105
$
3,081,617
$
3,127,438
$
3,184,791
$
3,230,413
Quarter Ended
2024
2023
(dollars in thousands, except per share
data)
September 30
June 30
March 31
December 31
September 30
STATEMENTS OF EARNINGS
Interest income
$
40,433
$
40,713
$
40,752
$
40,796
$
39,818
Interest expense
16,242
16,833
17,165
16,983
16,516
Net interest income
24,191
23,880
23,587
23,813
23,302
Reversal of provision for credit
losses
(500
)
(1,200
)
(250
)
—
—
Net interest income after reversal of
provision for credit losses
24,691
25,080
23,837
23,813
23,302
Noninterest income
5,154
4,599
5,258
4,796
4,939
Noninterest expense
20,678
20,602
20,692
21,402
20,514
Income before income taxes
9,167
9,077
8,403
7,207
7,727
Income tax provision
1,788
1,654
1,722
1,341
1,437
Net earnings
$
7,379
$
7,423
$
6,681
$
5,866
$
6,290
Net loss attributable to noncontrolling
interest
18
12
7
12
7
Net earnings attributable to Guaranty
Bancshares, Inc.
$
7,397
$
7,435
$
6,688
$
5,878
$
6,297
PER COMMON SHARE DATA
Earnings per common share, basic
$
0.65
$
0.65
$
0.58
$
0.51
$
0.54
Earnings per common share, diluted
0.65
0.65
0.58
0.51
0.54
Cash dividends per common share
0.24
0.24
0.24
0.23
0.23
Book value per common share - end of
quarter
27.94
26.98
26.47
26.28
25.64
Tangible book value per common share - end
of quarter(1)
25.03
24.06
23.57
23.37
22.72
Common shares outstanding - end of
quarter(2)
11,408,908
11,417,270
11,534,960
11,540,644
11,554,094
Weighted-average common shares
outstanding, basic
11,383,027
11,483,091
11,539,167
11,536,878
11,568,897
Weighted-average common shares
outstanding, diluted
11,443,324
11,525,504
11,598,239
11,589,165
11,619,342
PERFORMANCE RATIOS
Return on average assets (annualized)
0.96
%
0.95
%
0.85
%
0.73
%
0.78
%
Return on average equity (annualized)
9.58
9.91
8.93
7.93
8.43
Net interest margin, fully taxable
equivalent (annualized)(3)
3.33
3.26
3.16
3.11
3.02
Efficiency ratio(4)
70.47
72.34
71.74
74.81
72.64
(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)
September 30
June 30
March 31
December 31
September 30
LOAN PORTFOLIO COMPOSITION
Commercial and industrial
$
245,738
$
264,058
$
269,560
$
287,565
$
292,410
Real estate:
Construction and development
213,014
231,053
273,300
296,639
317,484
Commercial real estate
866,112
899,120
906,684
923,195
901,321
Farmland
169,116
180,126
180,502
186,295
188,614
1-4 family residential
524,245
526,650
523,573
514,603
504,002
Multi-family residential
54,158
47,507
44,569
44,292
42,720
Consumer
52,530
53,642
54,375
57,059
58,294
Agricultural
11,293
12,506
12,418
12,685
13,076
Overdrafts
331
335
276
243
328
Total loans(1)(2)
$
2,136,537
$
2,214,997
$
2,265,257
$
2,322,576
$
2,318,249
Quarter Ended
2024
2023
(dollars in thousands)
September 30
June 30
March 31
December 31
September 30
ALLOWANCE FOR CREDIT LOSSES
Balance at beginning of period
$
29,282
$
30,560
$
30,920
$
31,140
$
31,759
Loans charged-off
(272
)
(115
)
(310
)
(242
)
(644
)
Recoveries
33
37
200
22
25
Reversal of provision for credit
losses
(500
)
(1,200
)
(250
)
—
—
Balance at end of period
$
28,543
$
29,282
$
30,560
$
30,920
$
31,140
Allowance for credit losses / period-end
loans
1.34
%
1.32
%
1.35
%
1.33
%
1.34
%
Allowance for credit losses /
nonperforming loans
560.2
470.4
496.0
552.9
1,148.2
Net charge-offs / average loans
(annualized)
0.04
0.01
0.02
0.04
0.11
NONPERFORMING ASSETS
Nonaccrual loans
$
5,095
$
6,225
$
6,161
$
5,592
$
2,712
Other real estate owned
15,184
15,184
14,900
—
—
Repossessed assets owned
154
331
236
234
250
Total nonperforming assets
$
20,433
$
21,740
$
21,297
$
5,826
$
2,962
Nonaccrual loans as a percentage of total
loans(1)(2)
0.24
%
0.28
%
0.27
%
0.24
%
0.12
%
Nonperforming assets as a percentage
of:
Total loans(1)(2)
0.96
%
0.98
%
0.94
%
0.25
%
0.13
%
Total assets
0.66
0.71
0.68
0.18
0.09
(1) Excludes outstanding balances of loans
held for sale of $770,000, $871,000, $874,000, $976,000, and $2.5
million as of September 30, June 30 and March 31, 2024 and December
31 and September 30, 2023, respectively.
(2) Excludes deferred loan fees of
$397,000, $468,000, $685,000, $775,000, and $946,000 as of
September 30, June 30 and March 31, 2024 and December 31 and
September 30, 2023, respectively.
Quarter Ended
2024
2023
(dollars in thousands)
September 30
June 30
March 31
December 31
September 30
NONINTEREST INCOME
Service charges
$
1,165
$
1,098
$
1,069
$
1,123
$
1,131
Net realized gain on sale of loans
252
227
272
196
218
Fiduciary and custodial income
542
657
649
624
637
Bank-owned life insurance income
255
250
251
249
267
Merchant and debit card fees
1,817
2,122
1,706
1,760
1,752
Loan processing fee income
102
136
118
116
128
Mortgage fee income
46
43
41
30
46
Other noninterest income
975
66
1,152
698
760
Total noninterest income
$
5,154
$
4,599
$
5,258
$
4,796
$
4,939
NONINTEREST EXPENSE
Employee compensation and benefits
$
11,586
$
11,723
$
12,437
$
12,715
$
11,944
Occupancy expenses
3,026
2,924
2,747
2,757
2,960
Legal and professional fees
775
841
772
954
902
Software and technology
1,649
1,653
1,642
1,740
1,490
Amortization
142
142
143
145
147
Director and committee fees
188
198
200
186
192
Advertising and promotions
239
208
169
352
288
ATM and debit card expense
791
785
609
763
803
Telecommunication expense
178
159
173
175
178
FDIC insurance assessment fees
359
365
360
321
363
Other noninterest expense
1,745
1,604
1,440
1,294
1,247
Total noninterest expense
$
20,678
$
20,602
$
20,692
$
21,402
$
20,514
Quarter Ended September
30,
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)
$
2,167,701
$
34,615
6.35
%
$
2,332,171
$
34,765
5.91
%
Securities available for sale
263,487
2,484
3.75
181,946
1,346
2.93
Securities held to maturity
345,422
2,242
2.58
432,687
2,710
2.48
Nonmarketable equity securities
19,341
194
3.99
25,429
304
4.74
Interest-bearing deposits in other
banks
66,583
898
5.37
52,424
693
5.24
Total interest-earning assets
2,862,534
40,433
5.62
3,024,657
39,818
5.22
Allowance for credit losses
(29,101
)
(31,574
)
Noninterest-earning assets
232,947
220,406
Total assets
$
3,066,380
$
3,213,489
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing deposits
$
1,821,395
$
15,243
3.33
%
$
1,726,218
$
13,069
3.00
%
Advances from FHLB and fed funds
purchased
21,739
286
5.23
194,115
2,588
5.29
Line of credit
261
6
9.15
5,011
204
16.15
Subordinated debt
43,863
506
4.59
47,730
534
4.44
Securities sold under agreements to
repurchase
34,370
201
2.33
22,718
121
2.11
Total interest-bearing liabilities
1,921,628
16,242
3.36
1,995,792
16,516
3.28
Noninterest-bearing liabilities:
Noninterest-bearing deposits
800,573
888,772
Accrued interest and other liabilities
36,970
32,716
Total noninterest-bearing liabilities
837,543
921,488
Equity
307,209
296,209
Total liabilities and equity
$
3,066,380
$
3,213,489
Net interest rate spread(2)
2.26
%
1.94
%
Net interest income
$
24,191
$
23,302
Net interest margin(3)
3.36
%
3.06
%
Net interest margin, fully taxable
equivalent(4)
3.33
%
3.02
%
(1) Includes average outstanding balances
of loans held for sale of $882,000 and $1.1 million for the quarter
ended September 30, 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%.
Nine Months Ended September
30,
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)
$
2,234,538
$
105,115
6.28
%
$
2,359,880
$
100,513
5.69
%
Securities available for sale
241,777
6,602
3.65
180,645
3,619
2.68
Securities held to maturity
365,174
7,107
2.60
463,434
8,591
2.48
Nonmarketable equity securities
22,329
722
4.32
27,727
1,024
4.94
Interest-bearing deposits in other
banks
56,901
2,352
5.52
49,923
1,949
5.22
Total interest-earning assets
2,920,719
121,898
5.57
3,081,609
115,696
5.02
Allowance for credit losses
(30,125
)
(31,804
)
Noninterest-earning assets
234,822
219,227
Total assets
$
3,125,416
$
3,269,032
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing deposits
$
1,802,228
$
44,526
3.30
%
$
1,668,394
$
30,670
2.46
%
Advances from FHLB and fed funds
purchased
84,234
3,413
5.41
255,011
9,711
5.09
Line of credit
367
24
8.74
4,139
268
8.66
Subordinated debt
44,713
1,534
4.58
48,357
1,609
4.45
Securities sold under agreements to
repurchase
39,880
743
2.49
19,548
271
1.85
Total interest-bearing liabilities
1,971,422
50,240
3.40
1,995,449
42,529
2.85
Noninterest-bearing liabilities:
Noninterest-bearing deposits
814,117
944,870
Accrued interest and other liabilities
36,458
30,057
Total noninterest-bearing liabilities
850,575
974,927
Equity
303,418
298,656
Total liabilities and equity
$
3,125,415
$
3,269,032
Net interest rate spread(2)
2.17
%
2.17
%
Net interest income
$
71,658
$
73,167
Net interest margin(3)
3.28
%
3.17
%
Net interest margin, fully taxable
equivalent(4)
3.25
%
3.16
%
(1) Includes average outstanding balances
of loans held for sale of $801,000 and $1.4 million for the nine
months ended September 30, 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%.
NON-GAAP RECONCILING TABLES
Tangible Book Value per Common Share
As of
2024
2023
(dollars in thousands, except per share
data)
September 30
June 30
March 31
December 31
September 30
Equity attributable to Guaranty
Bancshares, Inc.
$
318,784
$
308,043
$
305,371
$
303,300
$
296,226
Adjustments:
Goodwill
(32,160
)
(32,160
)
(32,160
)
(32,160
)
(32,160
)
Core deposit intangible, net
(1,100
)
(1,206
)
(1,312
)
(1,418
)
(1,524
)
Total tangible common equity attributable
to Guaranty Bancshares, Inc.
$
285,524
$
274,677
$
271,899
$
269,722
$
262,542
Common shares outstanding(1)
11,408,908
11,417,270
11,534,960
11,540,644
11,554,094
Book value per common share
$
27.94
$
26.98
$
26.47
$
26.28
$
25.64
Tangible book value per common
share(1)
25.03
24.06
23.57
23.37
22.72
(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)
September 30, 2024
Total equity(1)
$
319,293
Less: net unrealized loss on HTM
securities, tax effected
(17,852
)
Total equity, including net unrealized
loss on AFS and HTM securities
$
301,441
Net unrealized loss on AFS securities, tax
effected
8,374
Net unrealized loss on HTM securities, tax
effected
17,852
Net unrealized loss on AFS and HTM
securities, tax effected
$
26,226
Net unrealized loss on securities as % of
total equity(1)
8.2
%
Total equity before impact of unrealized
losses
$
327,667
Net unrealized loss on securities as % of
total equity before impact of unrealized losses
8.0
%
Total average assets
$
3,066,380
Total equity to average assets
10.4
%
Total equity, adjusted for tax effected
net unrealized loss, to average assets
9.8
%
(1) Includes the net unrealized loss on
AFS securities of $8.4 million, tax effected.
Cost of Total Deposits
Quarter Ended
(dollars in thousands)
September 30, 2024
June 30, 2024
September 30, 2023
Total average interest-bearing
deposits
$
1,821,395
$
1,795,958
$
1,726,218
Adjustments:
Noninterest-bearing deposits
800,573
818,290
888,772
Total average deposits
$
2,621,968
$
2,614,248
$
2,614,990
Total deposit-related interest expense
$
15,243
$
14,824
$
13,069
Average cost of interest-bearing
deposits
3.33
%
3.32
%
3.00
%
Average cost of total deposits
2.31
2.28
1.98
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 third quarter
2024 financial results on Monday, October 21, 2024 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 October 31, 2024 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 September 30, 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/20241021442794/en/
Shalene Jacobson Executive Vice President and Chief Financial
Officer Guaranty Bancshares, Inc. (888) 572-9881
investors@gnty.com
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