Guaranty Bancshares(US:GNTY)2022-04-18 17:56Financial Data and Key Metrics Changes - The company reported total assets of just under $3.2 billion, an increase of $104 million for the quarter [5] - Loans increased by $157 million, or 8.6%, excluding PPP and warehouse lending, reaching a total of just over $2 billion [5][16] - Deposits grew by $127 million, totaling $2.8 billion, with non-interest bearing accounts making up 38% of total deposits [6][8] - Shareholders' equity decreased by $10.3 million due to a negative market value swing of approximately $17 million in the securities portfolio [7][8] - The company reported net earnings of $10.7 million, or $0.89 per share, which is an increase of $1.6 million from the previous quarter [9] Business Line Data and Key Metrics Changes - The bond portfolio saw a more than 50% increase, reflecting the deployment of excess liquidity [6] - Non-interest income increased by 7%, driven primarily by the termination of interest rate swaps [11] - Mortgage volume decreased by 20% from the previous quarter and 35% year-over-year, indicating a decline in mortgage activity [11] Market Data and Key Metrics Changes - The Texas economy remains strong, contributing to robust loan demand [15] - The company has about $1.3 billion, or 65%, of its loan portfolio in variable rates, with expectations of rate increases in the near future [17][18] Company Strategy and Development Direction - The company plans to maintain a conservative stance on deposit costs and interest rate increases due to its excess liquidity position [23] - A strategic focus on enhancing the mortgage division is underway, with new hires expected to contribute to future growth [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth, projecting low to mid double-digit growth on an annualized basis, while remaining cautious due to macroeconomic factors such as inflation and geopolitical concerns [38] - The company has unwound COVID-related reserves but added additional reserves due to macroeconomic uncertainties [20][38] Other Important Information - The company issued $35 million in subordinated notes with a fixed rate of 3.6% to 5% [24] - Share repurchases were conducted during the quarter, with plans to renew the buyback program [41] Q&A Session Summary Question: How should the bond balances be viewed going forward? - Management indicated that they purchased short-term bonds and are not likely to move significant additional funds into that program [29] Question: What is the expected impact on expenses due to changes in the mortgage division? - The expense run rate is expected to be in the $77 million to $78 million range going forward [30] Question: What are the expectations for loan growth and paydowns? - Paydowns slowed in Q1, and management is confident in higher guidance based on strong pipeline activity [46] Question: Will there be a new stock buyback program? - A new buyback program is already planned and will be renewed shortly [40]