Guaranty Bancshares(GNTY) - 2025 Q1 - Quarterly Report

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]