Guaranty Bancshares, Inc. (GNTY): Business Model Canvas [11-2024 Updated]
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Guaranty Bancshares, Inc. (GNTY) Bundle
In the competitive landscape of banking, understanding the business model of Guaranty Bancshares, Inc. (GNTY) reveals how this Texas-based institution thrives. By leveraging strong partnerships and a diverse range of financial products, GNTY not only enhances customer relationships but also drives community engagement. Discover how their strategic approach to key resources, value propositions, and revenue streams positions them as a leading player in the financial sector.
Guaranty Bancshares, Inc. (GNTY) - Business Model: Key Partnerships
Collaboration with local businesses for loan referrals
Guaranty Bancshares has established strong relationships with local businesses to facilitate loan referrals. As of September 30, 2024, the bank had a total of 89,878 deposit accounts, indicating a reliable network within the community. This collaboration has been instrumental in driving loan growth and enhancing customer relationships.
Partnerships with financial technology firms for digital banking solutions
In 2024, Guaranty Bancshares has continued to invest in partnerships with financial technology firms to enhance its digital banking solutions. The bank reported software and technology expenses of $1.6 million for the quarter ended September 30, 2024, which is a 10.7% increase from $1.5 million in the same quarter of 2023. This investment is aimed at improving operational efficiencies and customer experience in its digital offerings.
Engagement with regulatory bodies for compliance and guidance
Guaranty Bancshares actively engages with regulatory bodies to ensure compliance with financial regulations. As of September 30, 2024, the bank maintained a total capital ratio of 16.59%, well above the minimum regulatory requirements. This proactive approach to compliance not only mitigates risks but also positions the bank favorably within the industry.
| Partnership Type | Details | Financial Impact |
|---|---|---|
| Local Businesses | Loan referrals to enhance customer base | Increase in loan origination and deposit accounts |
| Financial Technology Firms | Investment in digital banking solutions | Software expenses of $1.6 million in Q3 2024 |
| Regulatory Bodies | Compliance and guidance engagement | Total capital ratio of 16.59% as of Sept 30, 2024 |
Guaranty Bancshares, Inc. (GNTY) - Business Model: Key Activities
Offering a variety of loan products and services
Guaranty Bancshares, Inc. provides a diverse range of loan products, including commercial and industrial loans, real estate loans, and consumer loans. As of September 30, 2024, the total loan portfolio was approximately $1.5 billion, reflecting a decrease of $186 million, or 8.0%, compared to the beginning of the year. The breakdown of loans is as follows:
| Loan Type | Amount ($ millions) | Percentage of Total Loans |
|---|---|---|
| Commercial and Industrial | 358.1 | 23.9% |
| Commercial Real Estate | 866.1 | 57.8% |
| Consumer and Overdrafts | 52.9 | 3.5% |
| Residential Real Estate | 198.4 | 13.2% |
| Total | 1,475.5 | 100% |
Managing deposits and interest rate risk
As of September 30, 2024, Guaranty Bancshares managed a total deposit base of approximately $1.2 billion, with a granular and consistent core deposit structure. The breakdown of total deposits is as follows:
| Deposit Type | Amount ($ millions) | Percentage of Total Deposits |
|---|---|---|
| Demand Deposits (DDA) | 378.4 | 31.5% |
| Time Deposits | 529.4 | 43.9% |
| Savings and MMDA | 302.3 | 25.0% |
| Total | 1,210.1 | 100% |
The interest rates on deposits increased slightly, with the cost of interest-bearing deposits rising to 3.33% as of September 30, 2024, compared to 3.32% in the previous quarter. Guaranty Bancshares has maintained a net interest margin of 3.28% for the nine months ended September 30, 2024.
Conducting financial planning and wealth management services
Guaranty Bancshares offers comprehensive financial planning and wealth management services through its trust and investment management division. As of September 30, 2024, fiduciary and custodial income totaled $1.8 million, representing a slight decrease from the previous year. The company opened 26 new trust accounts during the nine months ended September 30, 2024, indicating ongoing demand for these services. The total assets under management in the trust division were approximately $350 million.
Guaranty Bancshares, Inc. (GNTY) - Business Model: Key Resources
Strong capital base with total equity of $319.3 million as of September 30, 2024
As of September 30, 2024, Guaranty Bancshares, Inc. reported a total equity of $319.3 million. This represents an increase of $15.4 million or 5.1% from $303.8 million as of December 31, 2023. The increase in total equity was primarily driven by net earnings attributable to Guaranty Bancshares of $21.5 million during the nine months ended September 30, 2024, despite offsetting factors such as $8.3 million in dividends paid and $6.3 million in stock repurchases during the same period.
| Period | Total Equity ($ million) | Net Earnings ($ million) | Dividends Paid ($ million) | Stock Repurchases ($ million) |
|---|---|---|---|---|
| September 30, 2024 | 319.3 | 21.5 | 8.3 | 6.3 |
| December 31, 2023 | 303.8 | N/A | N/A | N/A |
Established branch network across East Texas and Dallas/Fort Worth areas
Guaranty Bancshares operates an extensive branch network throughout East Texas and the Dallas/Fort Worth areas, enhancing its ability to serve customers effectively. This network not only provides physical access to banking services but also fosters strong community relationships, which are essential for customer retention and growth.
Experienced banking and financial professionals
The company employs a team of skilled banking and financial professionals with extensive industry experience. This human capital is crucial for delivering quality service and maintaining customer trust. The strength of the team is reflected in the bank's operational efficiency and customer satisfaction ratings.
| Key Human Resources Metrics | Details |
|---|---|
| Number of Employees | Approximately 300 |
| Average Years of Experience | 15 years |
| Employee Training Programs | Comprehensive training and development programs in place |
Guaranty Bancshares, Inc. (GNTY) - Business Model: Value Propositions
Personalized banking solutions tailored to customer needs
Guaranty Bancshares, Inc. offers a variety of personalized banking solutions designed to cater to individual customer needs. The total number of deposit accounts as of September 30, 2024, was 89,878, with an average account balance of $29,695. Their focus on relationship banking enables the provision of customized financial products, enhancing customer satisfaction and loyalty.
Competitive interest rates on loans and deposits
As of September 30, 2024, Guaranty Bancshares reported an average rate paid on total interest-bearing deposits of 3.30%, a significant increase from 2.65% in the previous year. The competitive interest rates offered on loans include:
| Loan Type | Average Outstanding Balance (2024) | Average Yield (%) |
|---|---|---|
| Total Loans | $2,234,538,000 | 6.28 |
| Securities Available for Sale | $241,777,000 | 3.65 |
| Securities Held to Maturity | $365,174,000 | 2.60 |
The bank's net interest margin improved to 3.36% in Q3 2024, up from 3.06% in Q3 2023.
Commitment to community engagement and local economic development
Guaranty Bancshares emphasizes its commitment to community engagement, particularly in local economic development initiatives. The bank's community involvement includes support for local businesses and initiatives that foster economic growth. As of September 30, 2024, the total equity of Guaranty Bancshares was reported at $319.3 million, reflecting a solid position to invest in community projects. The bank also reported a net earnings increase to $21.5 million for the nine months ended September 30, 2024.
Guaranty Bancshares, Inc. (GNTY) - Business Model: Customer Relationships
Focused on building long-term relationships with clients
Guaranty Bancshares, Inc. emphasizes the establishment of long-term relationships with its clients. As of September 30, 2024, the bank reported a total of 89,878 deposit accounts, with an average account balance of $29,695. This demonstrates a robust core deposit base, reflecting strong and trusted banking relationships with customers.
Providing ongoing support through dedicated account management
The bank employs dedicated account managers to provide personalized assistance and support to its customers. This approach has resulted in a significant increase in the total number of demand deposit accounts (DDAs), which rose from 55,999 accounts as of September 30, 2023, to 57,347 accounts as of September 30, 2024, representing a growth of 2.4%. The ongoing support helps in retaining customers and enhancing their overall banking experience.
Utilizing customer feedback to enhance service offerings
Guaranty Bancshares actively seeks customer feedback to improve its services. The bank recorded a 2.1% increase in service charges, largely attributed to growth in the number of DDAs and increased debit card usage. This feedback mechanism not only aids in refining existing services but also assists in the development of new offerings tailored to customer needs.
| Metric | September 30, 2024 | September 30, 2023 | Change (%) |
|---|---|---|---|
| Total Deposit Accounts | 89,878 | N/A | N/A |
| Average Account Balance | $29,695 | N/A | N/A |
| Total DDAs | 57,347 | 55,999 | 2.4% |
| Service Charges Increase | $3,332 | $3,264 | 2.1% |
Guaranty Bancshares, Inc. (GNTY) - Business Model: Channels
Physical banking locations across Texas
Guaranty Bancshares operates a network of 36 banking locations throughout Texas as of September 30, 2024. These physical branches serve as key points for customer interaction, providing services such as personal banking, lending, and investment solutions. The bank has reported a total equity of $319.3 million at the end of the third quarter of 2024, which reflects a 5.1% increase compared to the previous year.
Online and mobile banking platforms for accessibility
The company has invested significantly in digital banking solutions, enhancing its online and mobile platforms to improve accessibility for its customers. As of September 30, 2024, Guaranty Bancshares reported that 31.5% of its total deposits were non-interest bearing, indicating a strong reliance on digital banking channels for transactions and account management. The bank's digital offerings include mobile check deposits, online loan applications, and a user-friendly interface for account management.
Direct marketing and community engagement initiatives
Guaranty Bancshares employs direct marketing strategies and community engagement initiatives to strengthen its brand presence and customer loyalty. In the nine months ending September 30, 2024, the bank's total noninterest income was $15.0 million, which includes revenue from service charges and other fees. The bank actively participates in local events and sponsorships, fostering relationships within the communities it serves.
| Channel Type | Details | Financial Impact |
|---|---|---|
| Physical Locations | 36 banking locations across Texas | Total equity: $319.3 million (as of Sept 30, 2024) |
| Online Banking | Robust online and mobile banking platforms | 31.5% of total deposits are non-interest bearing |
| Community Engagement | Direct marketing and local sponsorships | Noninterest income: $15.0 million (for 9 months ending Sept 30, 2024) |
Guaranty Bancshares, Inc. (GNTY) - Business Model: Customer Segments
Individual consumers seeking loans and banking services
Guaranty Bancshares serves individual consumers primarily through various loan products, including personal loans, mortgages, and home equity lines of credit. As of September 30, 2024, the total consumer loans outstanding amounted to $18.2 million. The bank recorded a net charge-off rate of 0.04% for consumer loans for the quarter ended September 30, 2024.
Small to medium-sized businesses in need of financing
The bank targets small to medium-sized enterprises (SMEs) by offering commercial loans, lines of credit, and business banking services. The total commercial and industrial loans outstanding were $31.6 million as of September 30, 2024. The average loan size for these businesses tends to vary, with many seeking amounts that align with their operational needs and growth strategies.
High-net-worth individuals requiring wealth management solutions
Guaranty Bancshares also caters to high-net-worth individuals through its wealth management services. The bank offers tailored investment strategies, estate planning, and trust services. As of September 30, 2024, total assets under management for this segment were not explicitly stated, but the bank reported a total equity of $319.3 million, indicative of the substantial financial backing available for wealth management.
| Customer Segment | Loan Amounts (as of September 30, 2024) | Charge-off Rate | Total Equity (as of September 30, 2024) |
|---|---|---|---|
| Individual Consumers | $18.2 million | 0.04% | $319.3 million |
| Small to Medium-sized Businesses | $31.6 million | N/A | |
| High-net-worth Individuals | N/A | N/A |
Guaranty Bancshares, Inc. (GNTY) - Business Model: Cost Structure
Operational costs related to branch maintenance and staffing
As of September 30, 2024, Guaranty Bancshares reported total operating expenses of approximately $42.6 million for the nine months ended September 30, 2024, which includes costs related to branch maintenance and staffing. The company had a total of 27 branches, contributing to ongoing maintenance and operational costs. Salaries and employee benefits accounted for about 52% of total noninterest expenses, reflecting a strategic investment in human capital to drive customer service and operational efficiency.
Interest expenses on deposits and borrowed funds
For the nine months ended September 30, 2024, Guaranty Bancshares reported interest expenses of $50.2 million, representing an increase of $7.7 million, or 18.1%, compared to the same period in 2023. This increase was primarily attributed to a $13.9 million, or 45.2%, rise in interest on deposits. The average interest rate paid on deposits increased by 84 basis points compared to the same period in 2023.
| Interest Expense Components | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Interest on Deposits | $44,736 | $30,833 |
| Interest on FHLB Advances | $5,464 | $11,782 |
| Total Interest Expense | $50,200 | $42,500 |
Marketing and customer acquisition costs
Guaranty Bancshares allocated approximately $2.1 million for marketing and customer acquisition efforts in the third quarter of 2024, reflecting a decrease of 17.0% from the $2.5 million spent in the same period in 2023. This reduction was mainly due to a strategic shift in marketing initiatives aimed at optimizing spending while maintaining customer engagement.
| Marketing Expenses | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Advertising | $239 | $288 |
| Promotions | $1,500 | $1,800 |
| Customer Acquisition | $371 | $412 |
| Total Marketing Expenses | $2,110 | $2,500 |
Guaranty Bancshares, Inc. (GNTY) - Business Model: Revenue Streams
Interest Income from Loans and Investments
For the nine months ended September 30, 2024, Guaranty Bancshares reported net interest income of $71.7 million, a decrease from $73.2 million for the same period in 2023. This decline was primarily due to an increase in interest expense of $7.7 million, or 18.1%, which was partially offset by a $6.2 million, or 5.4%, increase in interest income.
The average loans outstanding for the nine months ended September 30, 2024, was $2.23 billion, compared to $2.36 billion in 2023. Gross loans outstanding at the end of the period were $2.14 billion as of September 30, 2024, compared to $2.32 billion at the end of 2023.
The net interest margin for the nine months ended September 30, 2024, was 3.25%, up from 3.16% in the same period of 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Interest Income | $71.7 million | $73.2 million |
| Average Loans Outstanding | $2.23 billion | $2.36 billion |
| Gross Loans Outstanding | $2.14 billion | $2.32 billion |
| Net Interest Margin | 3.25% | 3.16% |
Fees from Banking Services and Wealth Management
Guaranty Bancshares generates noninterest income through various banking services. For the nine months ended September 30, 2024, total noninterest income was $15.0 million, a decrease of $2.7 million, or 15.3%, from $17.7 million in the same period in 2023. Significant components of noninterest income included:
- Service Charges: $3.3 million (2024) vs. $3.3 million (2023)
- Merchant and Debit Card Fees: $5.6 million (2024) vs. $5.5 million (2023)
- Fiduciary and Custodial Income: $1.8 million (2024) vs. $1.9 million (2023)
- Bank-Owned Life Insurance Income: $756,000 (2024) vs. $692,000 (2023)
| Source of Noninterest Income | 2024 | 2023 |
|---|---|---|
| Service Charges | $3.3 million | $3.3 million |
| Merchant and Debit Card Fees | $5.6 million | $5.5 million |
| Fiduciary and Custodial Income | $1.8 million | $1.9 million |
| Bank-Owned Life Insurance Income | $756,000 | $692,000 |
| Total Noninterest Income | $15.0 million | $17.7 million |
Income from Mortgage Loan Sales and Trust Services
Guaranty Bancshares also generates income from mortgage loan sales. For the nine months ended September 30, 2024, the company sold 103 mortgage loans for $23.7 million, compared to 130 mortgage loans for $34.2 million in the same period in 2023. The gain on the sale of loans was $751,000 for the nine months ended September 30, 2024, a decrease of $254,000 from $1.0 million in 2023.
Additionally, Guaranty Bancshares offers trust services which contribute to its revenue streams, although specific figures for trust service income were not detailed in the latest financial reports.
| Metric | 2024 | 2023 |
|---|---|---|
| Mortgage Loans Sold | 103 loans for $23.7 million | 130 loans for $34.2 million |
| Gain on Sale of Loans | $751,000 | $1.0 million |
Updated on 16 Nov 2024
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.