- **Texas Resilience**: Strong local economy supports 3-year high loan pipeline despite national tariff uncertainty.
- **NIM Growth**: 3.7% NIM with 106bp repricing tailwind from $341M variable loans and 59bp CD cost decline.
- **Credit Quality**: Minimal nonperformers (0.15% of assets), 1.32% ACL coverage, and granular loan book limits risk.
- **Share Buybacks**: $5.2M repurchased in Q1, $950K remaining under 2026 authorization.
- **Efficiency**: 66.78% ratio reflects disciplined cost management.


**【CEO Opening Remarks】**
- Texas economy remains strong, with no direct impact from national tariffs on Guaranty's local borrowers.
- Loan pipeline for Q2 2025 is at a 3-year high, though Q1 loan balances decreased by $23 million due to lower utilization.
- Net interest margin (NIM) is expected to grow 1-2 basis points per month, driven by repricing of $341 million in variable-rate loans and $613 million in CDs.
- Company remains disciplined in share repurchases, with $5.2 million repurchased in Q1 and $950,000 remaining under current authorization.

**【CFO Financial Highlights】**
- Q1 2025 net income: $8.6 million ($0.76 per share), up 31% YoY but down 14% from Q4 2024.
- NIM expanded to 3.7% (vs. 3.54% Q4 2024 and 3.16% Q1 2024), driven by repricing and reduced deposit costs.
- Total assets grew $37 million to $3.7 billion, with cash up $72 million to $217.8 million.
- Nonperforming assets remain minimal at 0.15% of total assets, with ACL coverage at 1.32% of loans.
- Efficiency ratio improved to 66.78% (vs. 68.3% Q4 2024).

**【Q&A Key Takeaways】**
1. **Loan Pipeline Composition**: Similar to current portfolio mix, with strong demand across all 4 Texas regions. C&I paydowns in Q1 were temporary, with utilization expected to resume.
2. **Deposit Strategy**: Focus on core, relationship-based deposits (31.3% noninterest-bearing). Anticipate 2-5% annual growth, driven by 10,000 new checking accounts/year.
3. **Credit Risk Management**: Granular loan book (avg. C&I loan $140k, 650 construction loans @ $357k each) limits systemic risk. No direct tariff exposure, but monitoring national economic impacts.
4. **Capital Allocation**: Share buybacks remain a priority, with $116 million in expected security cash flows for 2025. Expense target remains 2.5% of assets, though may fluctuate slightly.


Guaranty Bancshares (GNTY)-21 Apr 25-2025 Q1 Earnings call transcript

- **2025 Growth Ambition**: Aggressive stock buybacks and loan growth targeting 2025; 2024 Q4 NIM 3.54% (up 44bps YoY). 
- **Profitability Boost**: 2025 NIM expansion modeled at 2-3bps/month; $450M repricing loans driving margin. 
- **Credit Strength**: 0.16% nonperforming assets; 2024 net charge-offs 0.02%. 
- **Liquidity Power**: 16.5% liquidity ratio; $1.3B contingent funding for M&A or buybacks. 
- **Valuation Play**: 1.8% shares repurchased in 2024; 2025 buyback acceleration planned to close 30%+ price/fair value gap.

**【CEO Opening Remarks】**
- 2024 was a strong year with a focus on organic growth and Texas market expansion. 
- 2025 outlook: Aggressive stock buybacks to close valuation gap; loan growth capacity due to $3B asset size and strong liquidity (16.5% liquidity ratio). 
- Key priorities: Core deposit growth (10,000+ new checking accounts/year), disciplined credit, and selective M&A opportunities. 

**【CFO Financial Highlights】**
- Q4 2024 Net Income: $10M ($0.88 EPS) vs. $0.65/Q3 and $0.51/Q4 2023. 
- Net Interest Margin (NIM): 3.54% (Q4) vs. 3.30% (Q3) and 3.11% (2023 Q4). 
- Loan Growth: $103.1M new originations at 7.36% yield; 2025 repricing tailwind from $450M variable-rate loans. 
- Credit Quality: Nonperforming assets 0.16% of total assets; 2024 net charge-offs 0.02%. 
- Capital Utilization: $6.4M shares repurchased in 2024; 2025 buyback acceleration planned. 

**【Q&A Key Takeaways】**
- **NIM Expansion**: Modeling 2-3bps/month NIM growth in 2025; 2024 Q4 NIM up 44bps YoY. 
- **Loan Growth**: 2025 pipeline optimism; 2024 loan portfolio down 19% but 2025 originations expected to accelerate. 
- **Expense Control**: 2025 noninterest expense growth ~1-2%; health care cost savings and no major hires planned. 
- **M&A Strategy**: Open to acquisitions with cultural fit; $1.3B contingent liquidity for flexibility. 
- **Buyback Plan**: ~1M shares remaining under current program; may expand if valuation gap persists.

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