Guaranty Bancshares(GNTY) - 2024 Q4 - Annual Results

Financial Performance - Guaranty Bancshares, Inc. reported a net income of $10.0 million, or$0.88 per basic share, for Q4 2024, a 35.1% increase from $7.4 million, or$0.65 per share, in Q3 2024, and a 69.5% increase from $5.9 million, or$0.51 per share, in Q4 2023[2] - Net earnings for the quarter ended December 31, 2024, were $10.0 million, up from$7.4 million in the previous quarter[26] - Net earnings attributable to Guaranty Bancshares, Inc. rose to $31,537,000 in 2024, up from$30,037,000 in 2023, reflecting an increase of 4.99%[29] - Earnings per common share, basic, increased to $2.75 in 2024 from$2.57 in 2023, a growth of 7.01%[29] Asset and Deposit Management - Total deposits increased by $23.3 million, or 0.9$2.69 billion at December 31, 2024, compared to $2.67 billion at September 30, 2024, and increased$58.9 million, or 2.2%, from $2.63 billion at December 31, 2023[22] - The bank's total deposits rose to$2,692.2 million at December 31, 2024, from $2,668.9 million at September 30, 2024[25] - The company’s total average deposits for the year ended December 31, 2024, were$2,698,368, an increase from $2,623,703 in 2023[41] Loan and Credit Quality - The total loan portfolio decreased to$2,131,137,000 as of December 31, 2024, down from $2,322,576,000 in 2023, a decline of 8.23$250,000 in Q4 2024, totaling $2.2 million for the year, due to a decline in gross loan balances of$191.4 million, or 8.2%, since January 1, 2024[5][14] - Nonperforming assets decreased significantly to $4,935,000 in 2024 from$20,433,000 in 2023, a reduction of 75.85%[32] - Nonperforming assets as a percentage of total assets were 0.16% at December 31, 2024, down from 0.66% at September 30, 2024, and 0.18% at December 31, 2023[6] - Nonperforming assets as a percentage of total loans decreased to 0.23% at December 31, 2024, from 0.96% at September 30, 2024[23] - Nonaccrual loans as a percentage of total loans improved to 0.17% in 2024 from 0.24% in 2023, indicating better asset quality[32] Interest Income and Margin - Net interest income increased by $2.4 million, or 10.1$26.2 million in Q4 2024, driven by a $2.4 million increase in net interest income and a$930,000 increase in noninterest income[10][15] - The net interest margin improved to 3.54% in Q4 2024, up from 3.33% in Q3 2024 and 3.11% in Q4 2023, primarily due to a 21 basis point increase in interest-earning asset yields[11][13] - The net interest income for the year ended December 31, 2024, was $97,879, compared to$96,980 in 2023, with a net interest margin of 3.35%[37] - Total loans for the quarter ended December 31, 2024, were $2,126,414, with a net interest income of$26,221, representing a net interest margin of 3.56%[35] - The average cost of interest-bearing deposits was 3.07% for Q4 2024, compared to 3.17% in Q4 2023[41] - The company reported a net interest rate spread of 2.51% for Q4 2024, up from 2.03% in Q4 2023[35] Efficiency and Liquidity - The efficiency ratio for Q4 2024 improved to 62.23%, compared to 74.81% for the prior year quarter and 70.47% for Q3 2024[19] - The efficiency ratio slightly increased to 69.01% in 2024 from 68.92% in 2023, indicating a marginal decline in operational efficiency[29] - The liquidity ratio was 16.5% as of December 31, 2024, compared to 12.2% as of December 31, 2023, indicating improved liquidity management[6] Equity and Book Value - Total equity was $319.1 million at December 31, 2024, a slight decrease from$319.3 million at September 30, 2024, but an increase from $303.8 million at December 31, 2023[24] - The tangible book value per common share increased to$24.96 as of December 31, 2024, from $23.37 a year earlier[39] - Total equity attributable to Guaranty Bancshares, Inc. was$318,498 as of December 31, 2024, reflecting a slight increase from $303,300 in the previous year[39] Future Outlook and Events - The company will hold a conference call on January 21, 2025, to discuss fourth quarter and year-end 2024 financial results[45] - The company expects to fully resolve the remaining ORE property with a book balance of$1.2 million in the first quarter of 2025, with minimal expected losses[23] - Forward-looking statements reflect the company's current views on future events and financial performance, but actual results may differ[47] Non-GAAP Measures - The financial measures presented include non-GAAP measures such as "tangible book value per common share" and "cost of total deposits," which are useful for evaluating performance[42] - A reconciliation of non-GAAP financial measures to GAAP measures is provided at the end of the financial statement tables[44] - The company emphasizes that non-GAAP financial measures should not be considered a substitute for GAAP financial information[43] - The company has a commitment to providing meaningful supplemental information regarding performance through non-GAAP measures[42] Company Overview - Guaranty Bancshares, Inc. operates 33 banking locations across 26 Texas communities[46] - As of December 31, 2024, Guaranty Bancshares, Inc. had total assets of $3.1 billion, total loans of$2.1 billion, and total deposits of $2.7 billion[46] - The bank's total assets increased to$3,115.6 million at December 31, 2024, compared to $3,097.1 million at September 30, 2024[25]