Guaranty Bancshares (GNTY) Q1 2025 Earnings Call

Core Insights - Guaranty Bancshares reported mixed Q1 2025 results, showing strong net interest margin improvement but lower loan balances, with management optimistic about future growth potential pending economic clarity [3][5][8] - The bank's balance sheet is resilient, featuring over 91,100 deposit accounts averaging under $30,000, which is seen as a strength in uncertain economic times [3][9][13] Financial Performance - Net income for Q1 2025 was $8.6 million, or $0.76 per basic share, down from $0.88 per share in Q4 2024 but up from $0.58 per share in Q1 2024 [5][9] - Net interest margin (NIM) improved to 3.7%, up from 3.54% in Q4 2024 and 3.16% in Q1 2024, attributed to the Fed's rate cuts and repricing of loan securities [5][11] - Net loans decreased by $23 million, primarily due to lower utilization of commercial and industrial loan lines [5][9][21] - Total deposits increased by $12.2 million, with significant growth in money market and savings accounts [5][13] Management Outlook - Management anticipates net deposit growth of 2% to 5% for the year, focusing on relationship-based core deposits [6][24] - The loan pipeline is reported to be strong, with expectations for future growth as economic conditions stabilize [3][8][21] - The company plans to continue share repurchases and has increased its quarterly dividend to $0.25 per share from $0.24 [5][9][32] Asset Quality and Credit - Nonperforming assets remain low at 0.15% of total assets, with net charge-offs at 0.02% [9][11][30] - The bank maintains a strong liquidity position, with a liquidity ratio of 19.8% and total cash and cash equivalents of $217.8 million [13][9] - Management is closely monitoring the loan portfolio for potential impacts from economic uncertainties, particularly related to tariffs [29][30]