Guaranty Bancshares' Q4 2024 Earnings: A Strong Performance and Strategic Initiatives

Guaranty Bancshares Inc (GNTY) reported robust earnings for the fourth quarter and year-end 2024, demonstrating strong financial performance and strategic initiatives. The company's net income available to common shareholders was $10.0 million, or $0.88 per basic share, for the quarter ended December 31, 2024, compared to $7.4 million, or $0.65 per basic share, for the quarter ended September 30, 2024, and $5.9 million, or $0.51 per basic share, for the quarter ended December 31, 2023. Return on average assets and average equity for the fourth quarter of 2024 were 1.27% and 12.68%, respectively, compared to 0.96% and 9.58%, respectively, for the third quarter of 2024, and 0.73% and 7.93%, respectively, for the fourth quarter of 2023.

The increase in earnings during the fourth quarter of 2024 compared to the fourth quarter of 2023 was primarily due to a $2.4 million, or 10.1%, increase in net interest income, a $930,000, or 19.4%, increase in noninterest income, and a decrease in noninterest expense of $1.5 million, or 7.1%, compared to the prior year quarter. The increase in earnings as compared to the third quarter of 2024 was primarily driven by a $2.0 million, or 8.4%, increase in net interest income.



Key highlights of Guaranty Bancshares' Q4 2024 earnings include:

1. Improved Net Interest Margin (NIM): The company's net interest margin expanded to 3.54% in the fourth quarter of 2024, up from 3.11% in the prior year, driven by higher yielding assets and lower funding costs.
2. Strong Asset Quality: Nonperforming assets remained at very low levels, with nonperforming assets to total assets at 0.16% at year-end 2024. Net charge-offs (annualized) to average loans were 0.00% for the quarter ended December 31, 2024.
3. Robust Capital Position: Guaranty Bancshares maintained a strong capital position, with total equity to average assets at 10.2% at year-end 2024. Even after recognizing the entire net unrealized losses on both AFS and HTM securities, the total equity to average assets ratio would still be 9.4%, which is considered a strong capital level under regulatory requirements.
4. Excellent Liquidity: The company's liquidity ratio, calculated as cash and cash equivalents and unpledged investments divided by total liabilities, was 16.5% as of December 31, 2024, compared to 12.2% as of December 31, 2023. 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.
5. Aggressive Stock Buybacks: Guaranty Bancshares plans to utilize its strong capital position to aggressively buy back stock, aiming to enhance shareholder value. In 2024, the company repurchased 211,000 shares or 1.8% of outstanding shares.



In conclusion, Guaranty Bancshares' Q4 2024 earnings demonstrate strong financial performance and strategic initiatives. The company's improved net interest margin, robust capital position, excellent asset quality, and aggressive stock buybacks position it well for loan growth and potential M&A opportunities in 2025. Investors should closely monitor the company's progress as it continues to execute on its strategic plan.