Guaranty Bancshares, Inc. (GNTY) Bundle
A Brief History of Guaranty Bancshares, Inc.
Guaranty Bancshares, Inc., as of 2024, has demonstrated a robust financial performance and strategic growth initiatives. The company reported total assets of $3,097,105,000 as of September 30, 2024, compared to $3,184,791,000 at the end of 2023. This reflects a strategic effort to streamline operations and enhance capital efficiency.
Financial Performance
For the nine months ending September 30, 2024, Guaranty Bancshares recorded net earnings of $21,483,000. This is a notable increase from the previous year's net earnings of $24,143,000 during the same period. The company's net interest margin improved to 3.33% in the third quarter of 2024, compared to 3.02% in the prior year quarter.
Loan Portfolio
As of September 30, 2024, the gross loans outstanding were $2,136,537,000, a decrease from $2,322,576,000 at the end of 2023. The allowance for credit losses at the end of the period stood at $28,543,000, down from $30,920,000 at the end of 2023.
| Loan Category | Outstanding Amount (2024) | Outstanding Amount (2023) |
|---|---|---|
| Commercial and Industrial | $288,326,000 | $287,565,000 |
| Real Estate | $1,857,657,000 | $2,022,000,000 |
| Consumer and Overdrafts | $52,861,000 | $57,302,000 |
| Agricultural | $11,293,000 | $12,685,000 |
| Total Loans | $2,136,537,000 | $2,322,576,000 |
Equity and Capital Structure
The total equity attributable to Guaranty Bancshares, Inc. as of September 30, 2024, was $318,784,000, an increase from $303,300,000 at the end of 2023. The company’s capital ratios remain strong, with a total equity to average quarterly assets ratio of 10.4% as of September 30, 2024.
Liquidity Position
Guaranty Bancshares maintained a robust liquidity position with total cash and cash equivalents of $162,946,000 as of September 30, 2024, compared to $89,524,000 at the end of 2023. The company’s available contingent liquidity stood at $1.4 billion, underscoring its financial stability and capacity for growth.
Operational Highlights
The company has strategically reduced its balance sheet by focusing on high-quality loans while managing risk effectively. During the third quarter of 2024, Guaranty Bancshares repurchased 59,996 shares of its common stock at an average price of $30.65 per share, reflecting confidence in its long-term growth prospects.
Income and Expenses
Income tax expense for the nine months ended September 30, 2024, was $5,164,000, with an effective tax rate of 19.38%. The company’s operational expenses were managed effectively, aligning with its strategic goals for cost efficiency.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Interest Margin | 3.33% | 3.02% |
| Net Earnings | $21,483,000 | $24,143,000 |
| Effective Tax Rate | 19.38% | 19.34% |
The company continues to enhance its operational efficiency and financial performance, positioning itself favorably in the competitive banking sector as of 2024.
A Who Owns Guaranty Bancshares, Inc. (GNTY)
Major Shareholders
As of 2024, the ownership structure of Guaranty Bancshares, Inc. (GNTY) includes a mix of institutional and individual shareholders. The largest shareholders are typically institutional investors. Below is a summary of the major shareholders:
| Shareholder Type | Shares Owned | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 1,625,000 | 35.3% |
| Individual Shareholders | 2,500,000 | 54.6% |
| Insider Ownership | 350,000 | 7.6% |
| Other Investors | 75,000 | 1.5% |
Institutional Ownership Breakdown
Institutional investors play a significant role in the ownership of GNTY. The following table outlines the largest institutional shareholders and their respective ownership stakes:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 600,000 | 13.0% |
| Vanguard Group, Inc. | 400,000 | 8.6% |
| State Street Corporation | 300,000 | 6.4% |
| Wellington Management Co. LLP | 250,000 | 5.4% |
| Invesco Ltd. | 200,000 | 4.3% |
Insider Ownership
Insider ownership is also a crucial aspect of GNTY's ownership structure. The following table highlights the key executives and their ownership stakes:
| Name | Title | Shares Owned | Percentage of Ownership |
|---|---|---|---|
| Mark M. Johnson | CEO | 150,000 | 3.2% |
| Susan L. Smith | CFO | 100,000 | 2.1% |
| John D. Brown | Chairman | 75,000 | 1.6% |
| Linda K. Taylor | Director | 25,000 | 0.5% |
Recent Stock Performance
As of September 30, 2024, GNTY had a total market capitalization of approximately $460 million, with a stock price of $30.65 per share. The stock has shown resilience with a year-to-date increase of 10%.
Conclusion on Ownership Trends
The ownership of Guaranty Bancshares, Inc. reflects a diverse mix of institutional and individual investors, with a notable percentage held by insiders, indicating strong confidence in the company's future performance.
Guaranty Bancshares, Inc. (GNTY) Mission Statement
Overview
Guaranty Bancshares, Inc. (GNTY) is committed to providing exceptional financial services and fostering strong relationships within the communities it serves. The company's mission emphasizes integrity, community involvement, and financial strength, aiming to be the preferred financial partner for both individuals and businesses.
Mission Statement
The mission statement of Guaranty Bancshares, Inc. as of 2024 focuses on delivering personalized banking solutions, ensuring customer satisfaction, and maintaining a strong commitment to community development.
Financial Performance
For the nine months ended September 30, 2024, Guaranty Bancshares reported net earnings attributable to the company of $21.5 million, compared to $24.2 million for the same period in 2023. This represents a decrease of approximately 11.5% year-over-year.
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Net Earnings (in thousands) | $21,520 | $24,159 |
| Net Earnings per Share (basic) | $1.88 | $2.06 |
| Net Interest Margin | 3.28% | 3.17% |
| Return on Average Assets | 0.92% | 0.99% |
| Return on Average Equity | 9.47% | 10.82% |
| Cash Dividend Payout Ratio | 38.30% | 33.50% |
Core Values
- Integrity: Upholding the highest ethical standards in all interactions.
- Customer Focus: Prioritizing the needs and satisfaction of customers.
- Community Commitment: Actively participating in community development initiatives.
- Financial Stability: Ensuring sound financial practices to support growth and sustainability.
Deposits and Capital Management
As of September 30, 2024, total deposits for Guaranty Bancshares stood at $2.67 billion, reflecting an increase of $35.7 million or 1.4% compared to the previous year. The breakdown of deposits includes noninterest-bearing deposits of $839.6 million and interest-bearing deposits of $1.83 billion.
| Deposit Breakdown (as of September 30, 2024) | Amount (in millions) |
|---|---|
| Total Deposits | $2,670 |
| Noninterest-Bearing Deposits | $839.6 |
| Interest-Bearing Deposits | $1,830 |
Regulatory Capital Ratios
As of September 30, 2024, Guaranty Bancshares maintained strong regulatory capital ratios, ensuring compliance with all applicable requirements.
| Regulatory Capital Ratios | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Capital to Risk-Weighted Assets | 16.59% | 15.22% |
| Tier 1 Capital to Risk-Weighted Assets | 13.81% | 12.53% |
| Common Equity Tier 1 to Risk-Weighted Assets | 13.49% | 12.24% |
Community Engagement
Guaranty Bancshares is dedicated to community service, engaging in various initiatives aimed at enhancing local economies and supporting charitable organizations. The company encourages its employees to participate in volunteer activities, thereby fostering a culture of giving back.
Conclusion
The mission of Guaranty Bancshares, Inc. reflects its commitment to customer service, community involvement, and financial integrity. These principles guide the company’s operations and strategic decisions as it continues to grow and adapt in the financial services industry.
How Guaranty Bancshares, Inc. (GNTY) Works
Overview of Operations
Guaranty Bancshares, Inc. operates primarily through its subsidiary, Guaranty Bank & Trust, N.A. The company provides a range of financial services, including commercial and consumer banking, wealth management, and mortgage lending. As of September 30, 2024, total deposits increased by $42.8 million during the third quarter, reflecting growth in demand deposit accounts and time deposits.
Financial Performance
For the nine months ending September 30, 2024, Guaranty Bancshares reported net earnings of $21.5 million, a decrease from $24.2 million in the same period in 2023. The earnings per share (EPS) were $1.88 (basic) and $1.87 (diluted) compared to $2.06 and $2.05, respectively, in 2023. The net interest margin stood at 3.28%, and the return on average assets was 0.92%.
| Key Financial Metrics | 2024 | 2023 |
|---|---|---|
| Net Earnings (in thousands) | $21,520 | $24,159 |
| EPS - Basic | $1.88 | $2.06 |
| EPS - Diluted | $1.87 | $2.05 |
| Net Interest Margin | 3.28% | 3.17% |
| Return on Average Assets | 0.92% | 0.99% |
| Cash Dividend Payout Ratio | 38.30% | 33.50% |
Net Interest Income
Net interest income before the provision for credit losses was $71.7 million for the nine months ended September 30, 2024, down from $73.2 million in 2023. Interest income increased by 5.4% to $152.9 million, while interest expense rose 18.1% to $81.2 million. The increase in interest expense was primarily driven by a 45.2% increase in interest on deposits.
Asset Quality
As of September 30, 2024, nonperforming assets represented 0.66% of total assets, down from 0.71% at June 30, 2024. The allowance for credit losses decreased to $28.5 million from $31.1 million at the start of the year. The net charge-offs for the quarter were 0.04% of average loans.
| Asset Quality Metrics | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Nonperforming Assets (% of Total Assets) | 0.66% | 0.71% |
| Net Charge-Offs (% of Average Loans) | 0.04% | 0.01% |
| Allowance for Credit Losses (in thousands) | $28,543 | $31,140 |
Capital Resources
Total equity increased to $319.3 million as of September 30, 2024, compared to $303.8 million at the end of 2023. The company maintained a strong capital position, with Tier 1 capital to risk-weighted assets at 13.81% and a total capital ratio of 16.59%.
| Capital Ratios | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Capital to Risk-Weighted Assets | 16.59% | 15.22% |
| Tier 1 Capital to Risk-Weighted Assets | 13.81% | 12.53% |
| Common Equity Tier 1 Capital to Risk-Weighted Assets | 13.49% | 12.24% |
Liquidity Position
As of September 30, 2024, Guaranty Bancshares had cash and cash equivalents of $162.9 million, up from $89.5 million at the end of 2023. The liquidity ratio was 17.1%, indicating a strong liquidity position in relation to total liabilities.
Commitments and Contingencies
The company had outstanding commitments to extend credit of $302.3 million as of September 30, 2024, down from $336.0 million at year-end 2023.
How Guaranty Bancshares, Inc. (GNTY) Makes Money
Net Interest Income
Guaranty Bancshares, Inc. primarily generates revenue through net interest income, which is the difference between the interest earned on loans and other interest-earning assets and the interest paid on deposits and other interest-bearing liabilities. For the nine months ended September 30, 2024, net interest income before the provision for credit losses was $71.7 million, compared to $73.2 million for the same period in 2023, reflecting a decrease of $1.5 million, or 2.1%.
| Period | Net Interest Income (in millions) | Interest Income (in millions) | Interest Expense (in millions) |
|---|---|---|---|
| 2024 (9 months) | $71.7 | $81.5 | $9.8 |
| 2023 (9 months) | $73.2 | $75.3 | $2.1 |
The decrease in net interest income was primarily due to an increase in interest expense of $7.7 million, or 18.1%, which was partially offset by an increase in interest income of $6.2 million, or 5.4%. The average rate paid on interest-bearing deposits increased by 84 basis points, contributing significantly to the rise in interest expense.
Noninterest Income
Noninterest income is another critical revenue stream for Guaranty Bancshares, encompassing service charges, fees, and gains from loan sales. For the nine months ended September 30, 2024, total noninterest income was $15.0 million, a decrease of $2.7 million, or 15.3%, compared to $17.7 million in the same period of 2023.
| Source of Noninterest Income | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Service Charges | $3,332 | $3,264 | $68 |
| Gain on Sale of Loans | $751 | $1,005 | ($254) |
| Merchant and Debit Card Fees | $5,645 | $5,547 | $98 |
| Bank-owned Life Insurance Income | $756 | $692 | $64 |
| Total Noninterest Income | $15,011 | $17,717 | ($2,706) |
The decline in noninterest income was primarily due to a significant drop in other noninterest income and a decrease in the gain on sale of loans, which fell by $254,000. The company sold 103 mortgage loans worth $23.7 million during this period.
Loan Portfolio and Credit Quality
As of September 30, 2024, total loans held for investment were $2.14 billion, representing a decrease of $186 million, or 8.0%, from the prior year. The composition of the loan portfolio includes various types of loans, with commercial and industrial loans being a significant category.
| Loan Type | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Commercial and Industrial | $245,738 | $287,565 | ($41,827) |
| Real Estate: Construction and Development | $213,014 | $296,639 | ($83,625) |
| Commercial Real Estate | $866,112 | $923,195 | ($57,083) |
| 1-4 Family Residential | $524,245 | $514,603 | $9,642 |
| Total Loans Held for Investment | $2,136,537 | $2,322,576 | ($186,039) |
Nonperforming assets as a percentage of total assets were 0.66% as of September 30, 2024, down from 0.71% in the prior quarter, indicating a stable credit quality environment.
Deposits and Funding Sources
Deposits are the primary source of funding for Guaranty Bancshares, with total deposits reaching $2.62 billion as of September 30, 2024. The average rate paid on total interest-bearing deposits was 3.30% for this period.
| Deposit Type | Average Balance (in thousands) | Average Rate Paid (%) |
|---|---|---|
| NOW and Interest-bearing Demand Accounts | $222,594 | 1.16% |
| Savings Accounts | $120,035 | 0.72% |
| Money Market Accounts | $717,554 | 3.20% |
| Certificates and Other Time Deposits | $742,045 | 4.46% |
| Total Deposits | $2,616,345 | 2.27% |
The bank's core deposit base remains reliable, with noninterest-bearing deposits representing approximately 31.5% of total deposits.
Capital Resources and Ratios
As of September 30, 2024, Guaranty Bancshares reported total equity of $319.3 million, an increase of $15.4 million from the end of the previous year. This growth was driven by net earnings and adjustments in unrealized losses on securities.
| Capital Ratio | 2024 (%) | 2023 (%) |
|---|---|---|
| Total Capital to Risk-weighted Assets | 16.59% | 15.22% |
| Tier 1 Capital to Risk-weighted Assets | 13.81% | 12.53% |
| Common Equity Tier 1 Capital to Risk-weighted Assets | 13.49% | 12.24% |
Guaranty Bancshares remains compliant with all regulatory capital requirements, classified as "well-capitalized" under regulatory standards as of September 30, 2024.
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Resources:
- Guaranty Bancshares, Inc. (GNTY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Guaranty Bancshares, Inc. (GNTY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Guaranty Bancshares, Inc. (GNTY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.