Company Overview - Guaranty Bancshares Inc. (GNTY) is headquartered in Addison and operates in the Finance sector [3] - The stock has experienced a price change of 17.43% since the beginning of the year [3] - The company currently pays a dividend of $0.25 per share, resulting in a dividend yield of 2.46%, which is higher than the Banks - Southwest industry's yield of 1.27% and the S&P 500's yield of 1.56% [3] Dividend Performance - The current annualized dividend of $1 represents a 4.2% increase from the previous year [4] - Over the past 5 years, Guaranty Bancshares has increased its dividend 5 times, achieving an average annual increase of 7.12% [4] - The company's current payout ratio is 34%, indicating that it paid out 34% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - Earnings growth for GNTY appears solid, with the Zacks Consensus Estimate for 2025 projected at $3.30 per share, reflecting a year-over-year growth rate of 20.44% [5] Investment Appeal - GNTY is considered a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 1 (Strong Buy) [7] - The company is positioned as a better dividend option compared to high-growth firms or tech start-ups, which typically do not provide dividends [7]

Company Overview - Guaranty Bancshares Inc. (GNTY) is headquartered in Addison and has experienced a price change of 22.8% this year [3] - The company currently pays a dividend of $0.25 per share, resulting in a dividend yield of 2.35%, which is higher than the Banks - Southwest industry's yield of 1.22% and the S&P 500's yield of 1.53% [3] Dividend Performance - The current annualized dividend of $1 represents a 4.2% increase from the previous year [4] - Over the last 5 years, Guaranty Bancshares has increased its dividend 5 times year-over-year, averaging an annual increase of 7.12% [4] - The company's payout ratio is currently 34%, indicating that it pays out 34% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - Guaranty Bancshares is expected to see earnings expansion this fiscal year, with the Zacks Consensus Estimate for 2025 at $3.30 per share, reflecting a year-over-year earnings growth rate of 20.44% [5] Investment Appeal - GNTY is considered a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 1 (Strong Buy) [7]

Core Viewpoint - Guaranty Bancshares Inc. (GNTY) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly influenced by institutional investors [4][6]. - Guaranty Bancshares is projected to earn $3.30 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 20.4% [8]. - Over the past three months, the Zacks Consensus Estimate for Guaranty Bancshares has risen by 6.5%, indicating a positive trend in earnings expectations [8]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting their superior earnings estimate revision features [9][10].

Financial Performance - Net earnings attributable to Guaranty Bancshares Inc. were $8.6 million for Q1 2025, compared to $6.7 million for Q1 2024, representing a year-over-year increase of 28.4%[146] - Basic earnings per share increased to $0.76 in Q1 2025 from $0.58 in Q1 2024, reflecting a growth of 31.0%[146] - Noninterest income decreased by $225,000, or 4.3%, for the three months ended March 31, 2025 compared to the same period in 2024, primarily due to a decrease in other noninterest income[160] - Merchant and debit card fees increased by $421,000, or 24.7%, during the three months ended March 31, 2025, driven by a MasterCard bonus payment and growth in debit card usage[162] Interest Income and Margin - Net interest income before provision for credit losses rose to $26.7 million in Q1 2025, up $3.1 million or 13.3% from $23.6 million in Q1 2024[149] - The net interest margin improved to 3.70% in Q1 2025 from 3.16% in Q1 2024, an increase of 54 basis points[150] - The net interest margin increased to 3.71% for the three months ended March 31, 2025, compared to 3.18% for the same period in 2024[158] Deposits and Liquidity - Total deposits increased by $12.2 million during Q1 2025, with noninterest-bearing deposits representing 31.3% of total deposits[144] - The liquidity ratio was 19.8% as of March 31, 2025, compared to 10.6% a year earlier, indicating improved liquidity[144] - Average total deposits for the three months ended March 31, 2025, were $2.67 billion, an increase of $32.5 million, or 1.7%, compared to $2.64 billion for the year ended December 31, 2024[213] Loans and Credit Quality - Total loans decreased by $2.76 million in volume, resulting in a net interest income increase of $3.14 million for the three months ended March 31, 2025 compared to the same period in 2024[158] - The allowance for credit losses as a percentage of total loans was 1.32% as of March 31, 2025, compared to 1.33% as of December 31, 2024[159] - Nonperforming assets as a percentage of total assets decreased to 0.15% at March 31, 2025, down from 0.68% at March 31, 2024[142] - The company maintains a conservative lending approach, with established underwriting guidelines and monitoring of delinquency levels to ensure asset quality[179] Expenses - Noninterest expense totaled $21.2 million, an increase of $517,000, or 2.5%, compared to $20.7 million for the same period in 2024[165] - Employee compensation and benefits decreased by $197,000, or 1.6%, to $12.2 million for the three months ended March 31, 2025[166] - Occupancy expenses increased by $426,000, or 15.5%, compared to the same quarter of the prior year, due to increased ATM servicing and depreciation expenses[167] Capital and Equity - Total equity increased to $325.8 million as of March 31, 2025, compared to $319.1 million as of December 31, 2024, reflecting a $6.7 million increase, or 2.1%[236] - Total capital to risk-weighted assets ratio was 17.24% as of March 31, 2025, compared to 17.09% as of December 31, 2024[238] - Tier 1 capital to risk-weighted assets ratio improved to 14.44% as of March 31, 2025, from 14.29% as of December 31, 2024[238] Investment Securities - The carrying amount of the investment securities portfolio decreased by $7.2 million, or 1.1%, to $667.8 million as of March 31, 2025, from $675.0 million as of December 31, 2024[202] - Securities available for sale totaled $362.6 million and held to maturity securities totaled $305.2 million as of March 31, 2025, compared to $340.3 million and $334.7 million, respectively, as of December 31, 2024[203] - The average yield of the securities portfolio increased to 3.37% as of March 31, 2025, up from 2.95% as of December 31, 2024, representing a 42 basis points increase[211] Interest Rate Risk - The company is subject to interest rate risk, which may adversely affect earnings due to fluctuations in interest rates[264] - Management employs methodologies to manage interest rate risk, including interest rate shock simulation models[252] - Interest rate sensitivity analysis indicates that a 100 basis point increase in interest rates could decrease net interest income by 0.04%[256] Forward-Looking Statements - Forward-looking statements regarding future performance are subject to risks and uncertainties that could cause actual results to differ materially[263] - The company does not undertake any obligation to publicly update or review forward-looking statements as new factors emerge[265]

Company Overview - Guaranty Bancshares Inc. (GNTY) is headquartered in Addison and operates in the Finance sector [3] - The stock has experienced a price change of 14.94% since the beginning of the year [3] Dividend Information - Guaranty Bancshares currently pays a dividend of $0.25 per share, resulting in a dividend yield of 2.51% [3] - The average dividend yield for the Banks - Southwest industry is 1.16%, while the S&P 500's yield is 1.6% [3] - The company's annualized dividend of $1 has increased by 4.2% from the previous year [4] - Over the last 5 years, Guaranty Bancshares has raised its dividend 5 times, achieving an average annual increase of 7.12% [4] - The current payout ratio is 34%, indicating that the company pays out 34% of its trailing 12-month EPS as dividends [4] Earnings Growth Expectations - For the fiscal year, GNTY anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $3.10 per share, reflecting a 13.14% increase from the previous year [5] Investment Appeal - GNTY is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]

Company Overview - Guaranty Bancshares, Inc. is a Texas-based regional bank known for its focus on community lending and building relationships with small and mid-sized businesses [1] Investment Focus - The analysis primarily targets small- to mid-cap companies, which are often overlooked by many investors, while also occasionally reviewing large-cap names to provide a broader market perspective [1]

Financial Data and Key Metrics Changes - Total assets increased by approximately $37 million during Q1 2025 [8] - Net income for Q1 2025 was $8.6 million, equating to $0.76 per basic share, down from $0.88 per share in the previous quarter but up from $0.58 per share in Q1 2024 [12] - The net interest margin (NIM) improved to 0.7% in Q1 2025, up from 0.54% in Q4 2024 and 0.16% in Q1 2024 [13] - Total equity increased by $6.7 million, primarily due to net income and employee stock option exercises [11] Business Line Data and Key Metrics Changes - The loan book decreased by $23 million in Q1 2025, with a strong loan pipeline anticipated for Q2 [5][22] - Non-interest income decreased by $693,000 compared to the previous quarter, primarily due to elevated non-interest income in Q4 2024 [17] - Non-interest expense increased by $1.3 million, mainly due to employee compensation and related benefits [19] Market Data and Key Metrics Changes - The Texas economy remains strong and growing, with no negative impacts observed from national economic uncertainties [3][4] - Non-performing assets (NPAs) remained low at 0.15% of total assets, slightly improved from 0.16% at year-end [24] Company Strategy and Development Direction - The company is focused on maintaining a granular and stable core deposit base, with plans to open 10,000 checking accounts this year [60] - The strategy includes systematic investment in the bond portfolio as opportunities arise, utilizing cash flows from maturing securities [66] - The company anticipates a 2% to 5% net growth in the deposit book for the year [61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the loan portfolio and the quality of the customer base, despite national uncertainties [71] - The company is prepared for potential economic slowdowns while also being positioned for future growth [7][30] - Management does not expect to build reserves unless significant systemic concerns arise [46][50] Other Important Information - The company increased its dividend to $0.25 per share in Q1 2025, up from $0.24 per share in 2024 [12] - The liquidity ratio improved to 0.8% compared to 0.5% at year-end [30] Q&A Session Summary Question: Can you provide insights on the loan pipeline and its composition? - The loan pipeline is strong and similar to the current loan portfolio composition, with opportunities across all regions [39] Question: What are clients looking for to feel comfortable in the current environment? - Clients are cautious due to national uncertainties but see strength in local markets [44] Question: Can you elaborate on the CNI loan portfolio and the recent contraction? - The contraction was primarily due to lower utilization and paydowns in CNI lines [58] Question: What is the outlook for deposit growth for the full year? - The company anticipates a 2% to 5% net growth in deposits, focusing on core deposit relationships [61] Question: What is the plan for cash flows from the securities portfolio? - The plan is to systematically add to the bond portfolio as opportunities arise [66] Question: What areas of the portfolio are being closely monitored for credit risks? - The company is monitoring customers with potential direct impacts from tariffs, but currently sees no significant concerns [71] Question: What is the company's approach to share repurchases? - The company views share repurchases as a good utilization of excess capital and plans to continue this strategy [81] Question: What is the target for the expense to average asset ratio? - The target remains around 2.5%, with flexibility to adjust based on revenue and growth opportunities [84]

Financial Data and Key Metrics Changes - Total assets increased by approximately $37 million during Q1 2025 [8] - Net income for Q1 2025 was $8.6 million, equating to $0.76 per basic share, down from $0.88 per share in the previous quarter but up from $0.58 per share in Q1 2024 [12] - The net interest margin (NIM) improved to 0.7% in Q1 2025, up from 0.54% in Q4 2024 and 0.16% in Q1 2024 [13] - Return on average assets was 0.13% for the quarter, compared to 0.27% last quarter, while return on average equity was 0.83%, up from 0.68% in Q4 [12] Business Line Data and Key Metrics Changes - The loan book decreased by $23 million in Q1 2025, with a strong loan pipeline anticipated for Q2 [5][22] - Non-interest income decreased by $693,000 compared to the previous quarter, primarily due to elevated non-interest income in Q4 2024 [17] - Non-interest expense increased by $1.3 million in Q1 2025, mainly due to employee compensation and related benefits [19] Market Data and Key Metrics Changes - The Texas economy remains strong and growing, with no significant negative impacts observed from national economic uncertainties [3][4] - Non-performing assets to total assets ratio was 0.15% at March 31, compared to 0.16% at year-end [24] Company Strategy and Development Direction - The company is focused on maintaining a granular and historically stable core deposit base, with an anticipated net growth of 2% to 5% in the deposit book for the year [61] - Plans to utilize cash flows from maturing securities for loan growth or reinvestment in securities [66] - The company aims to continue share repurchases as a good utilization of excess capital [80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the loan portfolio and the quality of the customer base, despite uncertainties related to tariffs and the national economy [70][72] - The company is prepared for potential economic slowdowns while also being positioned for future growth [7] Other Important Information - The company increased its dividend to $0.25 per share in Q1 2025, up from $0.24 per share in 2024 [12] - Total equity increased by $6.7 million, primarily due to net income and employee stock option exercises [11] Q&A Session Summary Question: Can you provide insights on the loan pipeline and its composition? - The loan pipeline is similar to the current composition of the loan portfolio, with a strong uptick in opportunities observed post-November election [39] Question: What are clients looking for to feel comfortable in the current environment? - Clients are cautious due to national uncertainties but see strength in local markets [44] Question: What is the outlook for reserves based on current economic conditions? - No expectation to build reserves unless there is a significant systemic concern; qualitative factors remain elevated [46][50] Question: Can you elaborate on the CNI loan portfolio and its recent contraction? - The contraction was primarily due to lower utilization and paydowns in CNI lines [58] Question: What is the strategy for deposit growth moving forward? - The company aims for a 2% to 5% net growth in deposits, focusing on core deposit relationships [61] Question: How does the company plan to utilize cash flows from securities? - Plans to systematically add to the bond portfolio as opportunities arise [66] Question: What is the company's approach to share repurchases? - The company views share repurchases as a good use of excess capital and plans to continue this strategy [80]

Financial Performance - The Company's net income available to common shareholders for Q1 2025 was $8.6 million, or $0.76 per basic share, a decrease from $10.0 million, or $0.88 per share in Q4 2024, but an increase from $6.7 million, or $0.58 per share in Q1 2024[2]. - Net earnings for the first quarter of 2025 were $8.623 million, compared to $10.008 million in the previous quarter[27]. - Earnings per common share, basic, was $0.76 for the first quarter of 2025, down from $0.88 in the previous quarter[27]. - The Company's efficiency ratio improved to 66.78% in Q1 2025 from 71.74% in the prior year quarter[19]. Asset and Liability Management - Total assets increased to $3.153 billion at March 31, 2025, from $3.116 billion at December 31, 2024[26]. - Total liabilities increased to $2.827 billion at March 31, 2025, from $2.796 billion at December 31, 2024[26]. - Total equity was $325.8 million at March 31, 2025, up from $319.1 million at December 31, 2024, primarily due to net income of $8.6 million[25]. - The total equity attributable to Guaranty Bancshares, Inc. was $325.247 million as of March 31, 2025, up from $318.498 million at the end of the previous quarter[35]. Income and Expense Analysis - Net interest income for Q1 2025 was $26.7 million, an increase of $3.1 million, or 13.3%, from $23.6 million in Q1 2024, primarily due to a decrease in interest expense[10]. - Noninterest income decreased by $225,000, or 4.3%, in Q1 2025 to $5.0 million, primarily due to lower recoveries on SBA loans and a decrease in gains on loan sales[15]. - Noninterest expense increased by $517,000, or 2.5%, in Q1 2025 to $21.2 million, driven by higher occupancy expenses and other noninterest expenses[17]. - Total noninterest income for the quarter ended March 31, 2025, was $5,033, a decrease of 12.14% from $5,726 in the previous quarter[32]. - Total noninterest expense rose to $21,209, an increase of 6.69% from $19,880 in the previous quarter[32]. Loan and Deposit Trends - Total deposits increased by $12.2 million during Q1 2025, with noninterest-bearing deposits representing 31.3% of total deposits[6]. - Total deposits increased by $12.2 million, or 0.5%, to $2.70 billion at March 31, 2025, compared to $2.69 billion at December 31, 2024[23]. - Gross loans decreased by $23.0 million, or 1.1%, during Q1 2025, resulting in a gross loan balance of $2.11 billion[21]. - Total loans as of March 31, 2025, amounted to $2,108,161, a decrease of 1.08% from $2,131,137 on December 31, 2024[30]. Performance Ratios - Return on average assets and average equity for Q1 2025 were 1.13% and 10.83%, respectively, compared to 1.27% and 12.68% in Q4 2024 and 0.85% and 8.93% in Q1 2024[2]. - Return on average assets (annualized) was 1.13% for the first quarter of 2025, compared to 1.27% in the previous quarter[27]. - Return on average equity (annualized) was 10.83% for the first quarter of 2025, down from 12.68% in the previous quarter[27]. Credit Quality - Nonperforming assets as a percentage of total loans were 0.23% at March 31, 2025, unchanged from December 31, 2024, and down from 0.94% at March 31, 2024[24]. - The allowance for credit losses at the end of the period was $27,865, representing 1.32% of period-end loans[30]. - Nonaccrual loans increased to $4,756, accounting for 0.23% of total loans as of March 31, 2025[30]. - The company reported a net charge-off of $145 for the quarter, with recoveries amounting to $20[30]. Market and Operational Insights - The average yield on interest-earning assets was 5.60%, compared to 5.50% in the previous quarter[33]. - The average cost of interest-bearing deposits decreased to 2.83% from 3.07% in the previous quarter, a reduction of 24 basis points[37]. - The average cost of total deposits decreased to 1.96% from 2.11% in the previous quarter, a decline of 15 basis points[37]. - Guaranty Bancshares, Inc. operates 33 banking locations across 26 Texas communities[42]. Upcoming Events - The company will hold a conference call on April 21, 2025, to discuss the first quarter 2025 financial results[41].

Company Overview - Guaranty Bancshares Inc. (GNTY) is headquartered in Addison and operates in the Finance sector [3] - The stock has experienced a price change of 12.98% since the beginning of the year [3] Dividend Information - Guaranty Bancshares Inc. currently pays a dividend of $0.25 per share, resulting in a dividend yield of 2.56% [3] - This yield is significantly higher than the Banks - Southwest industry's yield of 1.16% and the S&P 500's yield of 1.68% [3] - The company's annualized dividend of $1 has increased by 4.2% from the previous year [4] - Over the last 5 years, Guaranty Bancshares has raised its dividend 5 times, averaging an annual increase of 7.12% [4] - The current payout ratio is 35%, indicating that the company pays out 35% of its trailing 12-month EPS as dividends [4] Earnings Expectations - Guaranty Bancshares is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $3.10 per share, reflecting a 13.14% increase from the previous year [5] Investment Considerations - The company is viewed as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7] - Income investors should note that high-yielding stocks may face challenges during periods of rising interest rates [7]