Guaranty Bancshares(GNTY)2024-10-21 17:25Financial Data and Key Metrics Changes - Total assets decreased by approximately 15.5 million during Q3 2024, while total liabilities increased by about 7.4 million, equating to 0.54 per share in Q3 2023 [7] - Return on average assets was 0.96% for the quarter, compared to 0.95% in Q2, while return on average equity was 9.58%, down from 9.91% in Q2 [7] - Net interest margin (NIM) increased to 3.33% from 3.26% in Q2 and 3.02% in Q3 2023, driven by improvements in interest-earning assets [8] Business Line Data and Key Metrics Changes - Gross loans decreased by 186 million year-to-date, primarily in C&I construction and development and CRE loan segments [10] - New loans originated during the quarter totaled 42.8 million during the quarter [14] - Non-interest bearing deposits represented 31.5% of total deposits at quarter end [14] - The liquidity ratio was reported at 17.1%, indicating strong liquidity [15] Company Strategy and Development Direction - The company aims to grow by another 2 billion over the next three to four years through organic growth and bolt-on acquisitions [4] - The management is optimistic about growth opportunities in Texas, citing a vibrant economy and strong borrower capacity [4][22] - The company is starting to plan for 2025, focusing on both organic growth and potential acquisitions [4][23] Management's Comments on Operating Environment and Future Outlook - Management noted muted growth due to cautious behavior from key customers, but expects improvements as rates stabilize post-election and geopolitical tensions ease [2] - The overall economic outlook for Texas remains positive, with management confident in the company's positioning to capitalize on future opportunities [5][24] Other Important Information - The company repurchased nearly 60,000 shares during the quarter at an average price of 555,000 primarily due to a prior quarter's ORE valuation allowance [10] Q&A Session Summary Question: Can you elaborate on the deposit repricing schedule and its impact on margin? - Management anticipates NIM will increase by about two basis points per month, with expectations of nearing 3.50% by the end of 2025 [18][19] Question: What are the organic and M&A growth opportunities? - Management emphasized a focus on organic growth while remaining open to bolt-on acquisitions, particularly among smaller banks in Texas [21][23] Question: How is the competitive landscape for deposit pricing? - Management noted reduced pressure on deposit pricing, with less aggressive competition compared to the previous year [31] Question: What is the expected repricing of CDs in the next quarter? - Approximately $254 million of the CD portfolio will reprice in Q4, which is about 34% of the total CD portfolio [29]