In This Article:
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Total Assets: Increased by $15.5 million during the third quarter.
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Total Liabilities: Increased by $4.8 million during the third quarter.
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Net Income: $7.4 million, equating to $0.65 per basic share.
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Return on Average Assets (ROA): 0.96% for the quarter.
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Return on Average Equity (ROE): 9.58% for the quarter.
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Net Interest Margin (NIM): 3.33% for the quarter.
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Gross Loans: Decreased by $78.5 million during the third quarter.
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Deposits and Repurchase Agreements: Increased by $48.8 million.
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Nonperforming Assets: 0.66% of total assets for the quarter.
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Nonaccrual Loans: $5.1 million as of September 30.
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Substandard Loans: $12.3 million at quarter end.
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Efficiency Ratio: 70.47% for the quarter.
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Liquidity Ratio: 17.1% at quarter end.
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Uninsured Deposits: 26.3% of total deposits at quarter end.
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Total Equity to Average Assets: 10.4% as of June 30.
Release Date: October 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Guaranty Bancshares Inc (NYSE:GNTY) reported a net income of $7.4 million for the third quarter, equating to $0.65 per basic share, which is an increase from $0.54 per share in the third quarter of 2023.
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The company's net interest margin improved to 3.33% this quarter, up from 3.26% in the second quarter and 3.02% during the same quarter last year.
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Nonperforming assets remain at historically low levels, with nonperforming loans as a percentage of total loans at 0.25% and as a percentage of total assets at 0.17%.
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Guaranty Bancshares Inc (NYSE:GNTY) has a strong core deposit base, with noninterest-bearing deposits representing 31.5% of total deposits at quarter end.
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The company has a robust liquidity position, with a liquidity ratio of 17.1% and total contingent liquidity of about $1.4 billion available through various channels.
Negative Points
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Total assets decreased by $88 million year-to-date, although there was a slight increase of $15.5 million during the third quarter.
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Gross loans decreased by $78.5 million in the third quarter, contributing to a year-to-date decrease of about $186 million.
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Noninterest income decreased by $555,000 during the quarter, primarily due to the absence of a $900,000 ORE valuation allowance present in the prior quarter.
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The efficiency ratio was relatively high at 70.47% for the quarter, indicating potential inefficiencies in operations.
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The company experienced extraordinary expenses related to properties in ORE, although these are expected to be resolved soon.
Q & A Highlights
Q: Can you provide more details on the deposit repricing schedule and its impact on the net interest margin (NIM)? A: Shalene Jacobson, CFO, explained that they anticipate the NIM will increase by about 2 basis points per month, aiming to approach 350 basis points. A significant portion of CDs will reprice at lower rates, providing tailwinds in Q4. The loan portfolio turns over every three years, with many commercial loans already repriced, and non-commercial loans expected to reprice at higher rates.