Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yie ...

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]

Financial Data and Key Metrics Changes - Total assets increased by approximately $37 million during Q1 2025 [8] - Net income for Q1 2025 was $8.6 million, equating to $0.76 per basic share, down from $0.88 per share in the previous quarter but up from $0.58 per share in Q1 2024 [12] - The net interest margin (NIM) improved to 0.7% in Q1 2025, up from 0.54% in Q4 2024 and 0.16% in Q1 2024 [13] - Return on average assets was 0.13% for the quarter, compared to 0.27% last quarter, while return on average equity was 0.83%, up from 0.68% in Q4 [12] Business Line Data and Key Metrics Changes - The loan book decreased by $23 million in Q1 2025, with a strong loan pipeline anticipated for Q2 [5][22] - Non-interest income decreased by $693,000 compared to the previous quarter, primarily due to elevated non-interest income in Q4 2024 [17] - Non-interest expense increased by $1.3 million in Q1 2025, mainly due to employee compensation and related benefits [19] Market Data and Key Metrics Changes - The Texas economy remains strong and growing, with no significant negative impacts observed from national economic uncertainties [3][4] - Non-performing assets to total assets ratio was 0.15% at March 31, compared to 0.16% at year-end [24] Company Strategy and Development Direction - The company is focused on maintaining a granular and historically stable core deposit base, with an anticipated net growth of 2% to 5% in the deposit book for the year [61] - Plans to utilize cash flows from maturing securities for loan growth or reinvestment in securities [66] - The company aims to continue share repurchases as a good utilization of excess capital [80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the loan portfolio and the quality of the customer base, despite uncertainties related to tariffs and the national economy [70][72] - The company is prepared for potential economic slowdowns while also being positioned for future growth [7] Other Important Information - The company increased its dividend to $0.25 per share in Q1 2025, up from $0.24 per share in 2024 [12] - Total equity increased by $6.7 million, primarily due to net income and employee stock option exercises [11] Q&A Session Summary Question: Can you provide insights on the loan pipeline and its composition? - The loan pipeline is similar to the current composition of the loan portfolio, with a strong uptick in opportunities observed post-November election [39] Question: What are clients looking for to feel comfortable in the current environment? - Clients are cautious due to national uncertainties but see strength in local markets [44] Question: What is the outlook for reserves based on current economic conditions? - No expectation to build reserves unless there is a significant systemic concern; qualitative factors remain elevated [46][50] Question: Can you elaborate on the CNI loan portfolio and its recent contraction? - The contraction was primarily due to lower utilization and paydowns in CNI lines [58] Question: What is the strategy for deposit growth moving forward? - The company aims for a 2% to 5% net growth in deposits, focusing on core deposit relationships [61] Question: How does the company plan to utilize cash flows from securities? - Plans to systematically add to the bond portfolio as opportunities arise [66] Question: What is the company's approach to share repurchases? - The company views share repurchases as a good use of excess capital and plans to continue this strategy [80]

Financial Data and Key Metrics Changes - Total assets increased by approximately $37 million during Q1 2025 [8] - Net income for Q1 2025 was $8.6 million, equating to $0.76 per basic share, down from $0.88 per share in the previous quarter but up from $0.58 per share in Q1 2024 [12] - The net interest margin (NIM) improved to 0.7% in Q1 2025, up from 0.54% in Q4 2024 and 0.16% in Q1 2024 [13] - Total equity increased by $6.7 million, primarily due to net income and employee stock option exercises [11] Business Line Data and Key Metrics Changes - The loan book decreased by $23 million in Q1 2025, with a strong loan pipeline anticipated for Q2 [5][22] - Non-interest income decreased by $693,000 compared to the previous quarter, primarily due to elevated non-interest income in Q4 2024 [17] - Non-interest expense increased by $1.3 million, mainly due to employee compensation and related benefits [19] Market Data and Key Metrics Changes - The Texas economy remains strong and growing, with no negative impacts observed from national economic uncertainties [3][4] - Non-performing assets (NPAs) remained low at 0.15% of total assets, slightly improved from 0.16% at year-end [24] Company Strategy and Development Direction - The company is focused on maintaining a granular and stable core deposit base, with plans to open 10,000 checking accounts this year [60] - The strategy includes systematic investment in the bond portfolio as opportunities arise, utilizing cash flows from maturing securities [66] - The company anticipates a 2% to 5% net growth in the deposit book for the year [61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the loan portfolio and the quality of the customer base, despite national uncertainties [71] - The company is prepared for potential economic slowdowns while also being positioned for future growth [7][30] - Management does not expect to build reserves unless significant systemic concerns arise [46][50] Other Important Information - The company increased its dividend to $0.25 per share in Q1 2025, up from $0.24 per share in 2024 [12] - The liquidity ratio improved to 0.8% compared to 0.5% at year-end [30] Q&A Session Summary Question: Can you provide insights on the loan pipeline and its composition? - The loan pipeline is strong and similar to the current loan portfolio composition, with opportunities across all regions [39] Question: What are clients looking for to feel comfortable in the current environment? - Clients are cautious due to national uncertainties but see strength in local markets [44] Question: Can you elaborate on the CNI loan portfolio and the recent contraction? - The contraction was primarily due to lower utilization and paydowns in CNI lines [58] Question: What is the outlook for deposit growth for the full year? - The company anticipates a 2% to 5% net growth in deposits, focusing on core deposit relationships [61] Question: What is the plan for cash flows from the securities portfolio? - The plan is to systematically add to the bond portfolio as opportunities arise [66] Question: What areas of the portfolio are being closely monitored for credit risks? - The company is monitoring customers with potential direct impacts from tariffs, but currently sees no significant concerns [71] Question: What is the company's approach to share repurchases? - The company views share repurchases as a good utilization of excess capital and plans to continue this strategy [81] Question: What is the target for the expense to average asset ratio? - The target remains around 2.5%, with flexibility to adjust based on revenue and growth opportunities [84]

Financial Performance - The Company's net income available to common shareholders for Q1 2025 was $8.6 million, or $0.76 per basic share, a decrease from $10.0 million, or $0.88 per share in Q4 2024, but an increase from $6.7 million, or $0.58 per share in Q1 2024[2]. - Net earnings for the first quarter of 2025 were $8.623 million, compared to $10.008 million in the previous quarter[27]. - Earnings per common share, basic, was $0.76 for the first quarter of 2025, down from $0.88 in the previous quarter[27]. - The Company's efficiency ratio improved to 66.78% in Q1 2025 from 71.74% in the prior year quarter[19]. Asset and Liability Management - Total assets increased to $3.153 billion at March 31, 2025, from $3.116 billion at December 31, 2024[26]. - Total liabilities increased to $2.827 billion at March 31, 2025, from $2.796 billion at December 31, 2024[26]. - Total equity was $325.8 million at March 31, 2025, up from $319.1 million at December 31, 2024, primarily due to net income of $8.6 million[25]. - The total equity attributable to Guaranty Bancshares, Inc. was $325.247 million as of March 31, 2025, up from $318.498 million at the end of the previous quarter[35]. Income and Expense Analysis - Net interest income for Q1 2025 was $26.7 million, an increase of $3.1 million, or 13.3%, from $23.6 million in Q1 2024, primarily due to a decrease in interest expense[10]. - Noninterest income decreased by $225,000, or 4.3%, in Q1 2025 to $5.0 million, primarily due to lower recoveries on SBA loans and a decrease in gains on loan sales[15]. - Noninterest expense increased by $517,000, or 2.5%, in Q1 2025 to $21.2 million, driven by higher occupancy expenses and other noninterest expenses[17]. - Total noninterest income for the quarter ended March 31, 2025, was $5,033, a decrease of 12.14% from $5,726 in the previous quarter[32]. - Total noninterest expense rose to $21,209, an increase of 6.69% from $19,880 in the previous quarter[32]. Loan and Deposit Trends - Total deposits increased by $12.2 million during Q1 2025, with noninterest-bearing deposits representing 31.3% of total deposits[6]. - Total deposits increased by $12.2 million, or 0.5%, to $2.70 billion at March 31, 2025, compared to $2.69 billion at December 31, 2024[23]. - Gross loans decreased by $23.0 million, or 1.1%, during Q1 2025, resulting in a gross loan balance of $2.11 billion[21]. - Total loans as of March 31, 2025, amounted to $2,108,161, a decrease of 1.08% from $2,131,137 on December 31, 2024[30]. Performance Ratios - Return on average assets and average equity for Q1 2025 were 1.13% and 10.83%, respectively, compared to 1.27% and 12.68% in Q4 2024 and 0.85% and 8.93% in Q1 2024[2]. - Return on average assets (annualized) was 1.13% for the first quarter of 2025, compared to 1.27% in the previous quarter[27]. - Return on average equity (annualized) was 10.83% for the first quarter of 2025, down from 12.68% in the previous quarter[27]. Credit Quality - Nonperforming assets as a percentage of total loans were 0.23% at March 31, 2025, unchanged from December 31, 2024, and down from 0.94% at March 31, 2024[24]. - The allowance for credit losses at the end of the period was $27,865, representing 1.32% of period-end loans[30]. - Nonaccrual loans increased to $4,756, accounting for 0.23% of total loans as of March 31, 2025[30]. - The company reported a net charge-off of $145 for the quarter, with recoveries amounting to $20[30]. Market and Operational Insights - The average yield on interest-earning assets was 5.60%, compared to 5.50% in the previous quarter[33]. - The average cost of interest-bearing deposits decreased to 2.83% from 3.07% in the previous quarter, a reduction of 24 basis points[37]. - The average cost of total deposits decreased to 1.96% from 2.11% in the previous quarter, a decline of 15 basis points[37]. - Guaranty Bancshares, Inc. operates 33 banking locations across 26 Texas communities[42]. Upcoming Events - The company will hold a conference call on April 21, 2025, to discuss the first quarter 2025 financial results[41].