Guaranty Bancshares Q4: Strengthening Margins, Liquidity Strategies, and Growth Prospects

Net Interest Margin Expansion:
- Guaranty Bancshares' net interest margin (NIM) improved to 3.54% in Q4, up from 3.11% in the same period last year.
- The increase was driven by the Fed lowering rates by 50 basis points during the quarter, which benefited the bank's cost of deposits, while loan and securities portfolios repriced upward.

Loan and Deposit Trends:
- Total loans decreased by $5 million in Q4, primarily due to strategic shrinking of the loan portfolio over the past year, while total deposits increased by $23 million.
- The bank's focus on maintaining strong liquidity and capacity to fund loan growth as opportunities arise contributed to these trends.

Capital Position and Shareholder Returns:
- Guaranty Bancshares ended the quarter with a strong capital position, enabling a $0.24 per share dividend to be paid.
- The company plans to be more aggressive in stock buybacks, leveraging their excess capital, with a focus on intrinsic value and capital efficiency.

Credit Quality and Asset Management:
- Nonperforming assets were at 0.16% of total assets at year-end, with no net charge-offs in Q4 and a year-to-date ratio of 0.02%.
- The sale of an ORE property for $14 million and proactive management of credit concentrations were key factors in maintaining strong credit quality.

Prospects for Growth and Shareholder Value:
- The company anticipates continued organic growth in assets and loan portfolio expansion, with a focus on expanding shareholder value through growth in Texas markets.
- This optimistic outlook is supported by strong brand recognition and a rightsized bank position capable of handling customer relationships while maintaining a community bank focus.