Guaranty Bancshares, Inc. (NYSE: GNTY) (the "Company," "we,"
"us," or "our"), the parent company of Guaranty Bank & Trust,
N.A. (the "Bank"), today reported financial results for the fiscal
quarter ended March 31, 2025. The Company's net income available to
common shareholders was $8.6 million, or $0.76 per basic share, for
the quarter ended March 31, 2025, compared to $10.0 million, or
$0.88 per basic share, for the quarter ended December 31, 2024 and
$6.7 million, or $0.58 per basic share, for the quarter ended March
31, 2024. Return on average assets and average equity for the first
quarter of 2025 were 1.13% and 10.83%, respectively, compared to
1.27% and 12.68%, respectively, for the fourth quarter of 2024 and
0.85% and 8.93%, respectively, for the first quarter of 2024. The
decrease in earnings during the first quarter of 2025 compared to
the fourth quarter of 2024 was primarily due to higher noninterest
expense and lower noninterest income. The increase in earnings in
the first quarter of 2025 compared to the first quarter of 2024 was
primarily due to an increase in net interest income in the current
quarter compared to the prior year quarter.
"We had nice earnings and net interest margin results to begin
2025. Earnings increased $2.0 million from the first quarter of
2024, while net interest margin (on a fully taxable equivalent
basis) continued to improve, increasing from 3.16% in the prior
year first quarter to 3.70% in the first quarter of 2025. Our core
deposits are stable and grew slightly during the period. Asset
quality remains strong, as nonperforming assets to total assets is
only 0.15% at the end of the quarter. Both liquidity and capital
remain at high levels. We continued to improve shareholder value
through repurchases of Company stock during the quarter and we
increased our quarterly dividend from $0.24 in the prior quarter to
$0.25 in the current quarter. There is certainly volatility in the
markets right now, but so far we're not seeing any material
negative impacts on our projections and modeling of results for the
year for our Company," said Ty Abston, the Company's Chairman and
Chief Executive Officer.
QUARTERLY HIGHLIGHTS
- Good Earnings and Improving NIM. Earnings were good in
the first quarter, driven primarily from higher net interest
margin. Net interest margin, on a fully taxable equivalent basis,
has continued to improve from 3.16% in the first quarter of 2024 to
3.54% in the fourth quarter of 2024 and 3.70% in the first quarter
of 2025. The improvements have resulted primarily from a decrease
in deposit costs, while earning assets have continued to reprice
upward.
- Strong Asset Quality. During the quarter, we resolved
and sold the $1.2 million of remaining other real estate owned
("ORE") that was on our balance sheet at year-end 2024, with a
minimal loss on sale of $184,000. Nonperforming assets as a
percentage of total assets were 0.15% at March 31, 2025, compared
to 0.16% at December 31, 2024 and 0.68% at March 31, 2024. Net
charge-offs (annualized) to average loans were 0.02% for the
quarter ended March 31, 2025, compared to 0.00% for the quarter
ended December 31, 2024, and 0.02% for the quarter ended March 31,
2024. We continue to maintain a granular loan portfolio. As of
March 31, 2025, we had 10,951 total active loans with an average
loan balance of $193,135. In our commercial real estate ("CRE")
portfolio, we had 995 active loans with an average balance of
$923,282 and our 1-4 family real estate portfolio had 2,789 loans
with an average balance of $181,126. There was a reversal of the
provision for credit losses of $300,000 during the first quarter
due to the decreases in our outstanding loan balances. With the
current market and economic uncertainties, there were minimal
changes to our qualitative factors during the first quarter, which
continue to remain at elevated levels. Once there is more economic
clarity and stability, we anticipate reductions to our qualitative
factors and potential for additional reverse provisions.
- Granular and Consistent Core Deposit Base. As of March
31, 2025, we have 91,105 total deposit accounts with an average
account balance of $29,684. We have a historically reliable core
deposit base, with strong and trusted banking relationships. Total
deposits increased by $12.2 million during the first quarter. DDA
balances increased $11.5 million, and savings and MMDA balances
increased $19.6 million, while time deposits decreased $18.9
million. Excluding public funds and bank-owned accounts, our
uninsured deposits as of March 31, 2025 were 26.7% of total
deposits. Interest rates paid on deposits during the quarter
continued to decrease, primarily due to repricing of certificates
of deposit.. Our average cost of interest-bearing deposits
decreased 24 basis points during the quarter from 3.07% in the
prior quarter to 2.83% in the current quarter. Our average cost of
total deposits for the first quarter of 2025 decreased 15 basis
points from 2.11% in the prior quarter to 1.96%†. As of
March 31, 2025, noninterest-bearing deposits represent 31.3% of
total deposits.
- Healthy Capital and Liquidity. Our capital and liquidity
ratios, as well as contingent liquidity sources, remain very
healthy. During the first quarter of 2025, we repurchased 127,537
shares of our common stock, or 1.12% of average shares outstanding
during the period, at an average price of $40.56 per share. Our
liquidity ratio, calculated as cash and cash equivalents and
unpledged investments divided by total liabilities, was 19.8% as of
March 31, 2025, compared to 10.6% as of March 31, 2024. 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 March
31, 2025 was 10.5%. If we had to recognize our entire 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.
† 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 provision for credit losses, in
the first quarter of 2025 and 2024 was $26.7 million and $23.6
million, respectively, an increase of $3.1 million, or 13.3%. The
increase in net interest income resulted from a decrease in
interest expense of $3.6 million, or 21.0%, compared to the prior
year quarter, which was partially offset by a decrease in interest
income of $469,000, or 1.2%, from the same quarter in the prior
year. The decreases in both interest income and expense resulted
primarily from a 100 basis point interest rate reduction by the
Federal Reserve in late 2024 and from lower outstanding loan
balances in the current quarter. We also had $1.9 million in
interest expense on FHLB advances during the first quarter of 2024,
which we did not have in the current quarter. Our
noninterest-bearing deposits to total deposits were 31.3% and 31.5%
as of March 31, 2025 and 2024, respectively.
Net interest margin, on a fully taxable equivalent ("FTE")
basis, for the first quarter of 2025 and 2024 was 3.70% and 3.16%,
respectively. Net interest margin, on an FTE basis, increased 54
basis points due to a 10 basis point increase in interest-earning
asset yield and further improved by a 58 basis point decrease in
the cost of interest-bearing liabilities during the first quarter
of 2025. The increase in interest-earning asset yields was due
primarily to an increase in yield on the loan portfolio from 6.21%
to 6.38%, or 17 basis points, along with 65 and five basis point
increases in the yields on AFS and HTM securities, respectively.
The weighted average yield on $86.7 million in new loans originated
in the first quarter was 7.45%. The decrease in the average cost of
interest-bearing liabilities was due primarily to a decrease in the
cost of interest-bearing deposits from 3.25% to 2.83%, a change of
42 basis points, in the first quarter of 2025 compared to the same
period in 2024, as well no interest expense for FHLB advances in
the current quarter, compared to $1.9 million in interest expense
at a rate of 5.45% in the prior year quarter.
Net interest income, before the provision for credit losses,
increased $505,000, or 1.9%, from $26.2 million in the fourth
quarter of 2024 to $26.7 million in the first quarter of 2025. The
increase in net interest income resulted primarily from a decrease
in interest expense of $1.5 million, or 9.9%, which was partially
offset by a $979,000, or 2.4%, decrease in interest income. The
decrease in interest income was due to a four basis point decrease
in average yield and a $7.6 million decrease in the average balance
of loans between periods. The decrease in interest expense was due
to repricing of certificates of deposit.
Net interest margin, on an FTE basis, increased from 3.54% for
the fourth quarter of 2024 to 3.70% for the first quarter of 2025,
an increase of 16 basis points. The increase in net interest
margin, on an FTE basis, was primarily due to a $12.7 million, or
0.4%, decrease in total interest-earning assets and the $505,000,
or 1.9%, increase in net interest income between periods.
We recorded a reversal of the provision for credit losses of
$300,000 during the first quarter of 2025, compared to a $250,000
reversal made in the fourth quarter of 2024 and a total reversal of
provision for credit losses in 2024 of $2.2 million. The reversal
of the provision for credit losses resulted from a decline in gross
loan balances of $23.0 million during the first quarter of 2025. As
of March 31, 2025 and December 31, 2024, our allowance for credit
losses as a percentage of total loans was 1.32% and 1.33%,
respectively.
Noninterest income decreased $225,000, or 4.3%, in the first
quarter of 2025 to $5.0 million, compared to $5.3 million for the
first quarter of 2024. The decrease from the same quarter in 2024
was primarily due to $499,000 in recoveries made on three SBA loans
during the first quarter of 2024 which were not present in the
first quarter of 2025, a decrease on the gain on sale of loans of
$132,000, or 48.5%, along with a $17,000, or 41.5%, decrease in
mortgage fee income compared to the same quarter in the prior year.
Those decreases were partially offset by a $421,000, or 24.7%,
increase in merchant and debit card fees in the first quarter of
2025 compared to the first quarter of 2024, due to a MasterCard
bonus payment of $400,000 received during the first quarter of
2025.
Noninterest income in the first quarter of 2025 decreased by
$693,000, or 12.1%, from $5.7 million in the fourth quarter of
2024. The decrease was primarily due to a decrease in other
noninterest income of $858,000, or 57.9%. $651,000 of this
difference resulted from a gain of $467,000 on the sale of the
commercial ORE property in Austin, Texas during the fourth quarter
of 2024 and a $184,000 loss on the sale of an ORE property in Fort
Worth during the first quarter of 2025. Additionally, rental income
decreased by $151,000 in the current quarter, also associated with
the sale of commercial ORE property in Austin. Net realized gain on
sale of mortgage and SBA loans also decreased $100,000, or 41.7%,
from $240,000 in the fourth quarter of 2024. These decreases were
partially offset by an increase in merchant and debit card fees of
$352,000, or 19.8%.
Noninterest expense increased $517,000, or 2.5%, in the first
quarter of 2025 to $21.2 million, compared to $20.7 million for the
first quarter of 2024. The increase in noninterest expense in the
first quarter of 2025 was driven primarily by a $426,000, or 15.5%,
increase in occupancy expenses compared to the prior year quarter,
which consisted of $216,000 related to ATM servicing and contracts,
an increase in depreciation expense of $95,000 driven by completion
of our new full service location in Georgetown, Texas and an
increase in other building-related expenses of $137,000 from the
first quarter of 2024. The remainder of the increase in noninterest
expense was due to a $288,000, or 5.2%, increase in other
noninterest expense, which was mainly attributable to a $152,000,
or 25.0%, increase in ATM and debit card processing expenses and a
$135,000, or 8.2%, increase in software and technology expense
compared to the first quarter of 2024. These increases were
partially offset by a $197,000, or 1.6%, decrease in employee
compensation and benefits in the first quarter of 2025 compared to
the same quarter of the prior year.
Noninterest expense increased $1.3 million, or 6.7%, in the
first quarter of 2025, from $19.9 million for the quarter ended
December 31, 2024. The increase resulted from a $1.2 million, or
10.8%, increase in employee compensation and benefits during the
first quarter of 2025 compared to the fourth quarter of 2024. The
Company funds its executive incentive retirement plan contributions
in the first quarter of each year, which accounted for $300,000 of
the increase in the current quarter. Other increases were due to
additional bonus related payroll taxes of $275,000 that were not
present in the fourth quarter and additional bonus accrual of
$175,000 in the current quarter compared to the fourth quarter of
2024. Finally, the Company is partially self-insured for employee
healthcare benefits. Due to fewer than anticipated claims and
actual costs, related expense accruals were reduced in the fourth
quarter of 2024, accounting for $446,000 of the total change
compared to the first quarter of 2025. These increases in employee
related costs were partially offset by decreases in salary expense
of $134,000 compared to the fourth quarter of 2024.
The Company’s efficiency ratio in the first quarter of 2025 was
66.78%, compared to 71.74% in the prior year quarter and 62.23% in
the fourth quarter of 2024.
FINANCIAL CONDITION
Consolidated assets for the Company totaled $3.15 billion at
March 31, 2025, compared to $3.12 billion at December 31, 2024 and
$3.13 billion at March 31, 2024.
Gross loans decreased by $23.0 million, or 1.1%, during the
quarter resulting in a gross loan balance of $2.11 billion at March
31, 2025, compared to $2.13 billion at December 31, 2024. The
decline in loans resulted primarily from lower demand from
potential borrowers as they seek greater economic certainty before
starting new projects.
Gross loans decreased $157.1 million, or 6.9%, from $2.27
billion at March 31, 2024. 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 $12.2 million, or 0.5%, to $2.70
billion at March 31, 2025, compared to $2.69 billion at December
31, 2024. The increase in deposits during the first quarter of 2025
compared to the fourth quarter of 2024 was the result of an
increase in interest-bearing deposits of $3.9 million and an
increase in noninterest-bearing deposits of $8.3 million. Total
deposits increased $76.5 million, or 2.9%, from $2.63 billion at
March 31, 2024. The increase in deposits during past 12 months
resulted primarily from an increase in interest-bearing deposits of
$59.6 million and an increase in noninterest-bearing deposits of
$16.9 million.
Nonperforming assets as a percentage of total loans were 0.23%
at March 31, 2025, compared to 0.23% at December 31, 2024 and 0.94%
at March 31, 2024. Nonperforming assets as a percentage of total
assets were 0.15% at March 31, 2025, compared to 0.16% at December
31, 2024, and 0.68% at March 31, 2024. 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
during the fourth quarter of 2024, and the resolution and sale of a
single family ORE property during the first quarter of 2025.
Total equity was $325.8 million at March 31, 2025, compared to
$319.1 million at December 31, 2024 and $305.9 million at March 31,
2024. The increase in total equity compared to the prior quarter
resulted primarily from net income of $8.6 million, $4.7 million of
other comprehensive income related to improvements in unrealized
losses on our investment securities, and $1.3 million related to
the exercise of stock options during the first quarter of 2025.
These were partially offset by $5.2 million in treasury stock
repurchases and $2.8 million in dividends paid during the first
quarter of 2025.
As of
2025
2024
(dollars in thousands)
March 31
December 31
September 30
June 30
March 31
ASSETS
Cash and due from banks
$
50,080
$
47,417
$
50,623
$
45,016
$
43,872
Federal funds sold
163,375
94,750
108,350
40,475
24,300
Interest-bearing deposits
4,358
3,797
3,973
4,721
4,921
Total cash and cash equivalents
217,813
145,964
162,946
90,212
73,093
Securities available for sale
362,647
340,304
277,567
242,662
228,787
Securities held to maturity
305,153
334,732
341,911
347,992
363,963
Loans held for sale
150
143
770
871
874
Loans, net
2,079,864
2,102,565
2,107,597
2,185,247
2,234,012
Accrued interest receivable
10,764
12,016
10,927
12,397
11,747
Premises and equipment, net
55,108
56,010
56,964
57,475
56,921
Other real estate owned
—
1,184
15,184
15,184
14,900
Cash surrender value of life insurance
43,136
42,883
42,623
42,369
42,119
Core deposit intangible, net
888
994
1,100
1,206
1,312
Goodwill
32,160
32,160
32,160
32,160
32,160
Other assets
45,478
46,599
47,356
53,842
67,550
Total assets
$
3,153,161
$
3,115,554
$
3,097,105
$
3,081,617
$
3,127,438
LIABILITIES AND EQUITY
Deposits
Noninterest-bearing
$
845,723
$
837,432
$
839,567
$
820,430
$
828,861
Interest-bearing
1,858,617
1,854,735
1,829,347
1,805,732
1,798,983
Total deposits
2,704,340
2,692,167
2,668,914
2,626,162
2,627,844
Securities sold under agreements to
repurchase
47,702
31,075
31,164
25,173
39,058
Accrued interest and other liabilities
33,362
31,320
33,849
32,860
33,807
Federal Home Loan Bank advances
—
—
—
45,000
75,000
Subordinated debentures
41,951
41,918
43,885
43,852
45,819
Total liabilities
2,827,355
2,796,480
2,777,812
2,773,047
2,821,528
Equity attributable to Guaranty
Bancshares, Inc.
325,247
318,498
318,784
308,043
305,371
Noncontrolling interest
559
576
509
527
539
Total equity
325,806
319,074
319,293
308,570
305,910
Total liabilities and equity
$
3,153,161
$
3,115,554
$
3,097,105
$
3,081,617
$
3,127,438
Quarter Ended
2025
2024
(dollars in thousands, except per share
data)
March 31
December 31
September 30
June 30
March 31
STATEMENTS OF EARNINGS
Interest income
$
40,283
$
41,262
$
40,433
$
40,713
$
40,752
Interest expense
13,557
15,041
16,242
16,833
17,165
Net interest income
26,726
26,221
24,191
23,880
23,587
Reversal of provision for credit
losses
(300
)
(250
)
(500
)
(1,200
)
(250
)
Net interest income after reversal of
provision for credit losses
27,026
26,471
24,691
25,080
23,837
Noninterest income
5,033
5,726
5,154
4,599
5,258
Noninterest expense
21,209
19,880
20,678
20,602
20,692
Income before income taxes
10,850
12,317
9,167
9,077
8,403
Income tax provision
2,227
2,309
1,788
1,654
1,722
Net earnings
$
8,623
$
10,008
$
7,379
$
7,423
$
6,681
Net loss attributable to noncontrolling
interest
17
9
18
12
7
Net earnings attributable to Guaranty
Bancshares, Inc.
$
8,640
$
10,017
$
7,397
$
7,435
$
6,688
PER COMMON SHARE DATA
Earnings per common share, basic
$
0.76
$
0.88
$
0.65
$
0.65
$
0.58
Earnings per common share, diluted
0.75
0.87
0.65
0.65
0.58
Cash dividends per common share
0.25
0.24
0.24
0.24
0.24
Book value per common share - end of
quarter
28.64
27.86
27.94
26.98
26.47
Tangible book value per common share - end
of quarter(1)
25.73
24.96
25.03
24.06
23.57
Common shares outstanding - end of
quarter(2)
11,356,960
11,431,568
11,408,908
11,417,270
11,534,960
Weighted-average common shares
outstanding, basic
11,404,255
11,422,063
11,383,027
11,483,091
11,539,167
Weighted-average common shares
outstanding, diluted
11,487,130
11,490,834
11,443,324
11,525,504
11,598,239
PERFORMANCE RATIOS
Return on average assets (annualized)
1.13
%
1.27
%
0.96
%
0.95
%
0.85
%
Return on average equity (annualized)
10.83
12.68
9.58
9.91
8.93
Net interest margin, fully taxable
equivalent (annualized)(3)
3.70
3.54
3.33
3.26
3.16
Efficiency ratio(4)
66.78
62.23
70.47
72.34
71.74
(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
2025
2024
(dollars in thousands)
March 31
December 31
September 30
June 30
March 31
LOAN PORTFOLIO COMPOSITION
Commercial and industrial
$
226,819
$
254,702
$
245,738
$
264,058
$
269,560
Real estate:
Construction and development
225,051
218,617
213,014
231,053
273,300
Commercial real estate
866,891
866,684
866,112
899,120
906,684
Farmland
139,455
147,191
169,116
180,126
180,502
1-4 family residential
534,991
529,006
524,245
526,650
523,573
Multi-family residential
51,249
51,538
54,158
47,507
44,569
Consumer
50,434
51,394
52,530
53,642
54,375
Agricultural
12,634
11,726
11,293
12,506
12,418
Overdrafts
637
279
331
335
276
Total loans(1)(2)
$
2,108,161
$
2,131,137
$
2,136,537
$
2,214,997
$
2,265,257
Quarter Ended
2025
2024
(dollars in thousands)
March 31
December 31
September 30
June 30
March 31
ALLOWANCE FOR CREDIT LOSSES
Balance at beginning of period
$
28,290
$
28,543
$
29,282
$
30,560
$
30,920
Loans charged-off
(145
)
(281
)
(272
)
(115
)
(310
)
Recoveries
20
278
33
37
200
Reversal of provision for credit
losses
(300
)
(250
)
(500
)
(1,200
)
(250
)
Balance at end of period
$
27,865
$
28,290
$
28,543
$
29,282
$
30,560
Allowance for credit losses / period-end
loans
1.32
%
1.33
%
1.34
%
1.32
%
1.35
%
Allowance for credit losses /
nonperforming loans
585.9
758.6
560.2
470.4
496.0
Net charge-offs / average loans
(annualized)
0.02
0.00
0.04
0.01
0.02
NONPERFORMING ASSETS
Nonaccrual loans
$
4,756
$
3,729
$
5,095
$
6,225
$
6,161
Other real estate owned
—
1,184
15,184
15,184
14,900
Repossessed assets owned
22
22
154
331
236
Total nonperforming assets
$
4,778
$
4,935
$
20,433
$
21,740
$
21,297
Nonaccrual loans as a percentage of total
loans(1)(2)
0.23
%
0.17
%
0.24
%
0.28
%
0.27
%
Nonperforming assets as a percentage
of:
Total loans(1)(2)
0.23
%
0.23
%
0.96
%
0.98
%
0.94
%
Total assets
0.15
0.16
0.66
0.71
0.68
(1) Excludes outstanding balances of loans
held for sale of $150,000, $143,000, $770,000, $871,000, and
$874,000 as of March 31, 2025, and December 31, September 30, June
30 and March 31, 2024, respectively.
(2) Excludes net deferred loan fees of
$432,000, $282,000, $397,000, $468,000, and $685,000 as of March
31, 2025, and December 31, September 30, June 30 and March 31,
2024, respectively.
Quarter Ended
2025
2024
(dollars in thousands)
March 31
December 31
September 30
June 30
March 31
NONINTEREST INCOME
Service charges
$
1,086
$
1,142
$
1,165
$
1,098
$
1,069
Net realized gain on sale of loans
140
240
252
227
272
Fiduciary and custodial income
668
661
542
657
649
Bank-owned life insurance income
254
258
255
250
251
Merchant and debit card fees
2,127
1,775
1,817
2,122
1,706
Loan processing fee income
110
131
102
136
118
Mortgage fee income
24
37
46
43
41
Other noninterest income
624
1,482
975
66
1,152
Total noninterest income
$
5,033
$
5,726
$
5,154
$
4,599
$
5,258
NONINTEREST EXPENSE
Employee compensation and benefits
$
12,240
$
11,048
$
11,586
$
11,723
$
12,437
Occupancy expenses
3,173
3,123
3,026
2,924
2,747
Legal and professional fees
806
716
775
841
772
Software and technology
1,777
1,733
1,649
1,653
1,642
Amortization
140
142
142
142
143
Director and committee fees
187
185
188
198
200
Advertising and promotions
189
267
239
208
169
ATM and debit card expense
761
819
791
785
609
Telecommunication expense
147
153
178
159
173
FDIC insurance assessment fees
351
320
359
365
360
Other noninterest expense
1,438
1,374
1,745
1,604
1,440
Total noninterest expense
$
21,209
$
19,880
$
20,678
$
20,602
$
20,692
Quarter Ended March
31,
2025
2024
(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)
$
2,118,783
$
33,316
6.38
%
$
2,299,177
$
35,491
6.21
%
Securities available for sale
351,404
3,545
4.09
216,298
1,851
3.44
Securities held to maturity
320,493
2,087
2.64
393,394
2,533
2.59
Nonmarketable equity securities
17,144
117
2.77
24,438
248
4.08
Interest-bearing deposits in other
banks
111,947
1,218
4.41
45,672
629
5.54
Total interest-earning assets
2,919,771
40,283
5.60
2,978,979
40,752
5.50
Allowance for credit losses
(28,084
)
(30,879
)
Noninterest-earning assets
217,157
230,829
Total assets
$
3,108,844
$
3,178,929
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing deposits
$
1,847,115
$
12,877
2.83
%
$
1,789,119
$
14,459
3.25
%
Advances from FHLB and fed funds
purchased
—
—
—
141,593
1,920
5.45
Line of credit
156
3
7.80
841
18
8.61
Subordinated debt
41,930
442
4.28
45,797
517
4.54
Securities sold under agreements to
repurchase
43,692
235
2.18
41,271
251
2.45
Total interest-bearing liabilities
1,932,893
13,557
2.84
2,018,621
17,165
3.42
Noninterest-bearing liabilities:
Noninterest-bearing deposits
822,324
823,638
Accrued interest and other liabilities
30,064
35,469
Total noninterest-bearing liabilities
852,388
859,107
Equity
323,563
301,201
Total liabilities and equity
$
3,108,844
$
3,178,929
Net interest rate spread(2)
2.76
%
2.08
%
Net interest income
$
26,726
$
23,587
Net interest margin(3)
3.71
%
3.18
%
Net interest margin, fully taxable
equivalent(4)
3.70
%
3.16
%
(1) Includes average outstanding balances
of loans held for sale of $561,000 and $704,000 for the quarter
ended March 31, 2025 and 2024, 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%.
Tangible Book Value per Common Share
As of
2025
2024
(dollars in thousands, except per share
data)
March 31
December 31
September 30
June 30
March 31
Equity attributable to Guaranty
Bancshares, Inc.
$
325,247
$
318,498
$
318,784
$
308,043
$
305,371
Adjustments:
Goodwill
(32,160
)
(32,160
)
(32,160
)
(32,160
)
(32,160
)
Core deposit intangible, net
(888
)
(994
)
(1,100
)
(1,206
)
(1,312
)
Total tangible common equity attributable
to Guaranty Bancshares, Inc.
$
292,199
$
285,344
$
285,524
$
274,677
$
271,899
Common shares outstanding(1)
11,356,960
11,431,568
11,408,908
11,417,270
11,534,960
Book value per common share
$
28.64
$
27.86
$
27.94
$
26.98
$
26.47
Tangible book value per common
share(1)
25.73
24.96
25.03
24.06
23.57
(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)
March 31, 2025
Total equity(1)
$
325,806
Less: net unrealized loss on HTM
securities, tax effected
(21,317
)
Total equity, including net unrealized
loss on AFS and HTM securities
$
304,489
Net unrealized loss on AFS securities, tax
effected
11,614
Net unrealized loss on HTM securities, tax
effected
21,317
Net unrealized loss on AFS and HTM
securities, tax effected
$
32,931
Net unrealized loss on securities as % of
total equity(1)
10.1
%
Total equity before impact of unrealized
losses
$
337,420
Net unrealized loss on securities as % of
total equity before impact of unrealized losses
9.8
%
Total average assets
$
3,108,844
Total equity to average assets
10.5
%
Total equity, adjusted for tax effected
net unrealized loss, to average assets
9.8
%
(1) Includes the net unrealized loss on
AFS securities of $11.6 million, tax effected.
Cost of Total Deposits
Quarter Ended
(dollars in thousands)
March 31, 2025
December 31, 2024
March 31, 2024
Total average interest-bearing
deposits
$
1,847,115
$
1,855,713
$
1,789,119
Adjustments:
Noninterest-bearing deposits
822,324
842,655
823,638
Total average deposits
$
2,669,439
$
2,698,368
$
2,612,757
Total deposit-related interest expense
$
12,877
$
14,301
$
14,459
Average cost of interest-bearing
deposits
2.83
%
3.07
%
3.25
%
Average cost of total deposits
1.96
%
2.11
%
2.23
%
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 first quarter
2025 financial results on Monday, April 21, 2025 at 10:00 a.m.
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 p.m. Central Time the day of the call and remain available
through April 30, 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 March 31, 2025, Guaranty Bancshares, Inc. had total
assets of $3.2 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/20250421739845/en/
Shalene Jacobson Executive Vice President and Chief Financial
Officer Guaranty Bancshares, Inc. (888) 572-9881
investors@gnty.com
Guaranty Bancshares (NYSE:GNTY)
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