Transaction Overview - Glacier Bancorp, Inc will acquire Guaranty Bancshares, Inc, expanding into Texas [8] - The transaction marks Glacier's entrance into Texas, a complementary state of operation [8] - Guaranty Bank & Trust will operate as Glacier's 18th separate bank division [8] - The deal is expected to be immediately accretive to EPS with minimal dilution to tangible book value per share and an earnback period of less than 1 year [8] - The deal is expected to have an internal rate of return (IRR) of approximately 20% [8] - Cost savings are estimated at 20% of GNTY's noninterest expense [8] Guaranty Bancshares Overview - Guaranty Bank & Trust has $3.2 billion in assets and 33 branches located throughout East Texas, Dallas/Fort Worth, Houston, Austin and Bryan/College Station [8] - Guaranty has $2.704 billion in deposits, with a 31.3% noninterest bearing deposits to total deposits [20] - Guaranty's net interest margin (NIM) is 3.70% [11] - Guaranty's gross loans HFI is $2.108 billion [20]

Core Insights - The Ademi Firm is investigating Guaranty (NYSE: GNTY) for potential breaches of fiduciary duty and legal violations related to its transaction with Glacier Bancorp [1] - In the tender offer, Guaranty shareholders will receive 1.0000 share of Glacier stock for each Guaranty share, valuing the transaction at approximately $476.2 million based on Glacier's closing price of $41.58 on June 23, 2025 [2] - The transaction agreement restricts competing offers for Guaranty by imposing significant penalties for accepting alternative bids, raising concerns about the Guaranty board's adherence to fiduciary duties [3]

Core Viewpoint - Glacier Bancorp, Inc. has announced the acquisition of Guaranty Bancshares, Inc. in an all-stock transaction valued at approximately $476.2 million, marking Glacier's 27th bank acquisition since 2000 and its 13th in the last decade [1][2][3] Company Overview - Guaranty Bancshares, Inc. has total assets of $3.2 billion, total gross loans of $2.1 billion, and total deposits of $2.7 billion as of March 31, 2025 [1][9] - Upon completion of the acquisition, Guaranty Bank & Trust will operate as a division of Glacier Bank, representing Glacier's 18th separate bank division [2] Strategic Rationale - The acquisition is seen as a strategic move to expand Glacier's presence in the Southwest, entering a state with strong growth prospects and a favorable business environment [3] - The Texas economy is highlighted as being worth $2.7 trillion, ranking as the 8th largest in the world if it were an independent country [3] Transaction Details - Guaranty shareholders will receive 1.0000 share of Glacier stock for each Guaranty share, with the transaction expected to close in the fourth quarter of 2025 [2] - The transaction includes the value of Guaranty stock options, with a per-share value of $41.58 based on Glacier's closing price on June 23, 2025 [2] Management Commentary - Glacier's President and CEO expressed enthusiasm about the acquisition, emphasizing the cultural and strategic fit between the two companies [3] - Guaranty's Chairman and CEO noted the importance of maintaining the relationship banking model and the benefits of joining a larger banking family [3]

Company Overview - Guaranty Bancshares Inc. (GNTY) is based in Addison and operates in the Finance sector, with a year-to-date share price change of 17.2% [3] - The company currently pays a dividend of $0.25 per share, resulting in a dividend yield of 2.47%, which is higher than the Banks - Southwest industry's yield of 1.32% and the S&P 500's yield of 1.62% [3] Dividend Performance - The current annualized dividend of $1 represents a 4.2% increase from the previous year, and over the past five years, GNTY has increased its dividend five times, averaging an 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 Expectations - GNTY is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $3.30 per share, reflecting a 20.44% 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 1 (Strong Buy) [7]

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]