Guaranty Bancshares, Inc. Reports First Quarter 2024 Financial Results
“We are pleased with our first quarter 2024 results. During the quarter, net interest margin continued to improve, we paid down borrowings from the FHLB, we repaid the remaining
QUARTERLY HIGHLIGHTS
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Good Earnings and Improving NIM. Earnings were good in the first quarter as net interest margin improved and non-interest income was boosted from sales of SBA and mortgage loans as well as recoveries from previously marked-down receivables due from the SBA. Net interest margin, on a fully taxable equivalent basis, has continued to improve from 3.02% in the third quarter of 2023 to 3.11% in the fourth quarter of 2023 and 3.16% in the first quarter of 2024. The improvements have resulted primarily from a slow-down in deposit cost increases, while earning assets have continued to reprice upward. The SBA receivable was related to the guaranteed portion of three SBA loans that were acquired from
Westbound Bank . The receivable was partially written down in the third quarter of 2022, as there was uncertainty at that time about possible SBA haircuts in the guaranteed portion due to file documentation. However, after extensive review by the SBA, the full amount of guarantees was received during the first quarter of 2024.
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Stable Asset Quality. Although we are seeing some deterioration for certain borrowers, overall credit quality remains strong and the expected losses on deteriorating credits are low primarily due to the Bank's equity position and/or strong guarantor support. During the quarter, we foreclosed on a multi-purpose commercial real estate loan in a vibrant location in the
South Austin area and recorded other real estate owned of$14.9 million . A recent appraisal indicates an LTV (prior to foreclosure) of 68.5%. Interest in purchasing the property has been high and we are in discussions with several interested parties. We expect little or no loss on the sale of this other real estate owned. Nonperforming assets as a percentage of total assets were 0.68% atMarch 31, 2024 , compared to 0.18% atDecember 31, 2023 and 0.40% atMarch 31, 2023 . Net charge-offs (annualized) to average loans were 0.02% for the quarter endedMarch 31, 2024 , compared to 0.04% for the quarter endedDecember 31, 2023 , and 0.00% for the quarter endedMarch 31, 2023 .
Commercial real estate (CRE) loans, particularly office related loans, have received increased scrutiny in recent months. As ofMarch 31, 2024 , our CRE loans and real estate C&D loans represent 40.0% and 12.1% of the total loan portfolio, respectively, and office-related loans represent 4.6% of the total loan portfolio and have an average balance of$516,000 .
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Granular and Consistent Core Deposit Base. As of
March 31, 2024 , we have 88,493 total deposit accounts with an average account balance of$29,696 . We have a historically reliable core deposit base, with strong and trusted banking relationships. Total deposits decreased by$5.4 million during the first quarter, which resulted primarily from the maturity of$25.0 million in brokered deposits inFebruary 2024 that we did not renew. Excluding these brokered CDs, total core deposits grew$19.6 million during the first quarter. DDA balances decreased$27.1 million , savings and MMDA balances increased$30.8 million and time deposits (excluding matured brokered CDs) increased$15.9 million . Excluding public funds and bank-owned accounts, our uninsured deposits as ofMarch 31, 2024 were 25.43% of total deposits.
Interest rates paid on deposits during the quarter stabilized with minimal increases. Despite the decrease in DDA during the quarter, noninterest-bearing deposits still represent 31.5% of total deposits. Our cost of interest-bearing deposits increased eight basis points during the quarter from 3.17% in the prior quarter to 3.25%. This increase was primarily due to renewals of maturing certificates of deposit into new CDs paying higher rates and the shift from noninterest-bearing balances to interest-bearing. Our cost of total deposits for the first quarter of 2024 increased nine basis points from 2.14% in the prior quarter to 2.23%†.
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Healthy Capital and Liquidity. Our capital and liquidity ratios, as well as contingent liquidity sources, remain very healthy. During the first quarter of 2024, we repurchased 11,651 shares of our common stock, or 0.10% of average shares outstanding during the period, at an average price of$28.76 per share. Our liquidity ratio, calculated as cash and cash equivalents and unpledged investments divided by total liabilities, was 10.6% as ofMarch 31, 2024 , compared to 15.3% as ofMarch 31, 2023 . Our total available contingent liquidity, net of current outstanding borrowings, was$1.3 billion , consisting of FHLB, FRB and correspondent bank fed funds and revolving lines of credit. Finally, our total equity to average quarterly assets as ofMarch 31, 2024 was 9.6%. If we had to recognize our entire unrealized losses on both AFS and HTM securities, our total equity to average assets ratio would be 8.8%†, which we believe represents a strong capital level under regulatory requirements.
† Non-GAAP financial metric. Calculations of this metric and reconciliations to GAAP are included in the schedules accompanying this release. |
RESULTS OF OPERATIONS
Net interest income, before the provision for credit losses, in the first quarter of 2024 and 2023 was
Net interest margin, on a fully taxable equivalent basis, for the first quarter of 2024 and 2023 was 3.16% and 3.24%, respectively. Net interest margin, on a fully taxable equivalent basis, decreased nine basis points primarily due to interest-bearing liabilities repricing faster than our interest-earning assets during the period. The cost of interest-bearing liabilities increased 98 basis points from the prior year quarter, while interest earning asset yields increased 70 basis points. The increase in the cost of interest-bearing liabilities was due primarily to an increase in the cost of interest-bearing deposits from 1.91% to 3.25%, a change of 134 basis points, in the first quarter of 2024 compared to the same period in 2023, as well as increased rates on FHLB advances, which increased from 4.94% to 5.45%, an increase of 51 basis points, from the prior year quarter. The increases in cost were partially offset by increases in yield on the loan portfolio from 5.46% to 6.21%, or 75 basis points, as well as 109 and 13 basis point increases in yield on AFS and HTM securities, respectively. Although the cost of interest-bearing liabilities have repriced more quickly during this period, the weighted average yield on
Net interest income, before the provision for credit losses, decreased
Net interest margin, on a fully taxable equivalent basis, increased from 3.11% for the fourth quarter of 2023 to 3.16% for the first quarter of 2024, an increase of four basis points. The increase in net interest margin, on a fully taxable equivalent basis, was primarily due to an increase on loan yield from 6.06% for the fourth quarter of 2023 to 6.21% for the first quarter of 2024, a change of 15 basis points, and a decrease in total interest-earning assets during the first quarter of 2024. This increase was partially offset by an increase in the cost of interest-bearing deposits from 3.17% in the fourth quarter of 2023 to 3.25% in the first quarter of 2024, a change of eight basis points.
We recorded a
Noninterest income increased
Noninterest expense increased
Noninterest income in the first quarter of 2024 increased by
Noninterest expense decreased
The Company’s efficiency ratio in the first quarter of 2024 was 71.74%, compared to 66.41% in the prior year quarter and 74.81% in the fourth quarter of 2024.
FINANCIAL CONDITION
Consolidated assets for the Company totaled
Gross loans decreased by
Gross loans decreased
Total deposits decreased by
Nonperforming assets as a percentage of total loans were 0.94% at
Total equity was
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As of |
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2024 |
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2023 |
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(dollars in thousands) |
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ASSETS |
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Cash and due from banks |
|
$ |
43,872 |
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$ |
47,744 |
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|
$ |
47,922 |
|
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$ |
47,663 |
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$ |
59,030 |
|
Federal funds sold |
|
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24,300 |
|
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|
36,575 |
|
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|
73,275 |
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44,950 |
|
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|
95,400 |
|
Interest-bearing deposits |
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4,921 |
|
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|
5,205 |
|
|
|
8,980 |
|
|
|
4,738 |
|
|
|
3,695 |
|
Total cash and cash equivalents |
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|
73,093 |
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|
89,524 |
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130,177 |
|
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|
97,351 |
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|
|
158,125 |
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Securities available for sale |
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228,787 |
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|
196,195 |
|
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|
178,644 |
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|
166,596 |
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|
173,744 |
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Securities held to maturity |
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363,963 |
|
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|
404,208 |
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|
408,308 |
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|
437,292 |
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|
476,105 |
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Loans held for sale |
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|
874 |
|
|
|
976 |
|
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|
2,506 |
|
|
|
795 |
|
|
|
1,260 |
|
Loans, net |
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2,234,012 |
|
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|
2,290,881 |
|
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|
2,286,163 |
|
|
|
2,300,882 |
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|
2,344,240 |
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Accrued interest receivable |
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|
11,747 |
|
|
|
13,143 |
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|
|
11,307 |
|
|
|
11,110 |
|
|
|
10,443 |
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Premises and equipment, net |
|
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56,921 |
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|
57,018 |
|
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56,712 |
|
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|
56,151 |
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55,457 |
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Other real estate owned |
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14,900 |
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|
— |
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|
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— |
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— |
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|
|
38 |
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Cash surrender value of life insurance |
|
|
42,119 |
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|
|
42,348 |
|
|
|
42,096 |
|
|
|
41,830 |
|
|
|
38,619 |
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Core deposit intangible, net |
|
|
1,312 |
|
|
|
1,418 |
|
|
|
1,524 |
|
|
|
1,633 |
|
|
|
1,746 |
|
|
|
|
32,160 |
|
|
|
32,160 |
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|
32,160 |
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|
|
32,160 |
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|
|
32,160 |
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Other assets |
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67,550 |
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|
56,920 |
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|
80,816 |
|
|
|
60,396 |
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|
|
64,350 |
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Total assets |
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$ |
3,127,438 |
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$ |
3,184,791 |
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$ |
3,230,413 |
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$ |
3,206,196 |
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$ |
3,356,287 |
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LIABILITIES AND EQUITY |
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Deposits |
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Noninterest-bearing |
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$ |
828,861 |
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$ |
852,957 |
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$ |
903,391 |
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$ |
915,462 |
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$ |
992,527 |
|
Interest-bearing |
|
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1,798,983 |
|
|
|
1,780,289 |
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1,754,902 |
|
|
|
1,687,355 |
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1,630,841 |
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Total deposits |
|
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2,627,844 |
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2,633,246 |
|
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2,658,293 |
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|
|
2,602,817 |
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2,623,368 |
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Securities sold under agreements to repurchase |
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|
39,058 |
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|
25,172 |
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|
|
19,366 |
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|
|
20,532 |
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|
|
13,338 |
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Accrued interest and other liabilities |
|
|
33,807 |
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|
32,242 |
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|
|
31,218 |
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|
|
30,701 |
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|
30,125 |
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Line of credit |
|
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— |
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|
4,500 |
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|
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2,000 |
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|
12,000 |
|
|
|
— |
|
|
|
|
75,000 |
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|
|
140,000 |
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|
|
175,000 |
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|
|
195,000 |
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|
|
340,000 |
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Subordinated debentures |
|
|
45,819 |
|
|
|
45,785 |
|
|
|
47,752 |
|
|
|
47,719 |
|
|
|
49,186 |
|
Total liabilities |
|
|
2,821,528 |
|
|
|
2,880,945 |
|
|
|
2,933,629 |
|
|
|
2,908,769 |
|
|
|
3,056,017 |
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Equity attributable to |
|
|
305,371 |
|
|
|
303,300 |
|
|
|
296,226 |
|
|
|
296,862 |
|
|
|
299,700 |
|
Noncontrolling interest |
|
|
539 |
|
|
|
546 |
|
|
|
558 |
|
|
|
565 |
|
|
|
570 |
|
Total equity |
|
|
305,910 |
|
|
|
303,846 |
|
|
|
296,784 |
|
|
|
297,427 |
|
|
|
300,270 |
|
Total liabilities and equity |
|
$ |
3,127,438 |
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$ |
3,184,791 |
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$ |
3,230,413 |
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$ |
3,206,196 |
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$ |
3,356,287 |
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Quarter Ended |
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2024 |
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2023 |
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(dollars in thousands, except per share data) |
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STATEMENTS OF EARNINGS |
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Interest income |
|
$ |
40,752 |
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$ |
40,796 |
|
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$ |
39,818 |
|
|
$ |
38,734 |
|
|
$ |
37,144 |
|
Interest expense |
|
|
17,165 |
|
|
|
16,983 |
|
|
|
16,516 |
|
|
|
14,031 |
|
|
|
11,982 |
|
Net interest income |
|
|
23,587 |
|
|
|
23,813 |
|
|
|
23,302 |
|
|
|
24,703 |
|
|
|
25,162 |
|
Reversal of provision for credit losses |
|
|
(250 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net interest income after provision for credit losses |
|
|
23,837 |
|
|
|
23,813 |
|
|
|
23,302 |
|
|
|
24,703 |
|
|
|
25,162 |
|
Noninterest income |
|
|
5,258 |
|
|
|
4,796 |
|
|
|
4,939 |
|
|
|
7,873 |
|
|
|
4,905 |
|
Noninterest expense |
|
|
20,692 |
|
|
|
21,402 |
|
|
|
20,514 |
|
|
|
20,471 |
|
|
|
19,967 |
|
Income before income taxes |
|
|
8,403 |
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|
|
7,207 |
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|
|
7,727 |
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|
|
12,105 |
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|
|
10,100 |
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Income tax provision |
|
|
1,722 |
|
|
|
1,341 |
|
|
|
1,437 |
|
|
|
2,529 |
|
|
|
1,823 |
|
Net earnings |
|
$ |
6,681 |
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|
$ |
5,866 |
|
|
$ |
6,290 |
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|
$ |
9,576 |
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|
$ |
8,277 |
|
Net loss attributable to noncontrolling interest |
|
|
7 |
|
|
|
12 |
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|
|
7 |
|
|
|
5 |
|
|
|
4 |
|
Net earnings attributable to |
|
$ |
6,688 |
|
|
$ |
5,878 |
|
|
$ |
6,297 |
|
|
$ |
9,581 |
|
|
$ |
8,281 |
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PER COMMON SHARE DATA |
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Earnings per common share, basic |
|
$ |
0.58 |
|
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$ |
0.51 |
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|
$ |
0.54 |
|
|
$ |
0.82 |
|
|
$ |
0.69 |
|
Earnings per common share, diluted |
|
|
0.58 |
|
|
|
0.51 |
|
|
|
0.54 |
|
|
|
0.81 |
|
|
|
0.69 |
|
Cash dividends per common share |
|
|
0.24 |
|
|
|
0.23 |
|
|
|
0.23 |
|
|
|
0.23 |
|
|
|
0.23 |
|
Book value per common share - end of quarter |
|
|
26.47 |
|
|
|
26.28 |
|
|
|
25.64 |
|
|
|
25.58 |
|
|
|
25.13 |
|
Tangible book value per common share - end of quarter(1) |
|
|
23.57 |
|
|
|
23.37 |
|
|
|
22.72 |
|
|
|
22.67 |
|
|
|
22.29 |
|
Common shares outstanding - end of quarter(4) |
|
|
11,534,960 |
|
|
|
11,540,644 |
|
|
|
11,554,094 |
|
|
|
11,603,167 |
|
|
|
11,925,357 |
|
Weighted-average common shares outstanding, basic |
|
|
11,539,167 |
|
|
|
11,536,878 |
|
|
|
11,568,897 |
|
|
|
11,735,475 |
|
|
|
11,939,593 |
|
Weighted-average common shares outstanding, diluted |
|
|
11,598,239 |
|
|
|
11,589,165 |
|
|
|
11,619,342 |
|
|
|
11,756,512 |
|
|
|
12,012,004 |
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PERFORMANCE RATIOS |
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Return on average assets (annualized) |
|
|
0.85 |
% |
|
|
0.73 |
% |
|
|
0.78 |
% |
|
|
1.17 |
% |
|
|
1.01 |
% |
Return on average equity (annualized) |
|
|
8.93 |
|
|
|
7.93 |
|
|
|
8.43 |
|
|
|
12.87 |
|
|
|
11.18 |
|
Net interest margin, fully taxable equivalent (annualized)(2) |
|
|
3.16 |
|
|
|
3.11 |
|
|
|
3.02 |
|
|
|
3.19 |
|
|
|
3.24 |
|
Efficiency ratio(3) |
|
|
71.74 |
|
|
|
74.81 |
|
|
|
72.64 |
|
|
|
62.84 |
|
|
|
66.41 |
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(1) See Non-GAAP Reconciling Tables. |
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(2) Net interest margin on a fully taxable equivalent basis is equal to net interest income adjusted for nontaxable income divided by average interest-earning assets, annualized, using a marginal tax rate of 21%. |
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(3) The efficiency ratio was calculated by dividing total noninterest expense by net interest income plus noninterest income, excluding securities gains or losses. Taxes are not part of this calculation. |
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(4) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options. |
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As of |
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|
|
2024 |
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|
2023 |
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(dollars in thousands) |
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LOAN PORTFOLIO COMPOSITION |
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Commercial and industrial |
|
$ |
269,560 |
|
|
$ |
287,565 |
|
|
$ |
292,410 |
|
|
$ |
295,864 |
|
|
$ |
295,936 |
|
Real estate: |
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Construction and development |
|
|
273,300 |
|
|
|
296,639 |
|
|
|
317,484 |
|
|
|
345,127 |
|
|
|
372,203 |
|
Commercial real estate |
|
|
906,684 |
|
|
|
923,195 |
|
|
|
901,321 |
|
|
|
891,883 |
|
|
|
900,190 |
|
Farmland |
|
|
180,502 |
|
|
|
186,295 |
|
|
|
188,614 |
|
|
|
187,105 |
|
|
|
190,802 |
|
1-4 family residential |
|
|
523,573 |
|
|
|
514,603 |
|
|
|
504,002 |
|
|
|
496,340 |
|
|
|
499,944 |
|
Multi-family residential |
|
|
44,569 |
|
|
|
44,292 |
|
|
|
42,720 |
|
|
|
44,385 |
|
|
|
44,760 |
|
Consumer |
|
|
54,375 |
|
|
|
57,059 |
|
|
|
58,294 |
|
|
|
59,498 |
|
|
|
60,163 |
|
Agricultural |
|
|
12,418 |
|
|
|
12,685 |
|
|
|
13,076 |
|
|
|
13,447 |
|
|
|
13,545 |
|
Overdrafts |
|
|
276 |
|
|
|
243 |
|
|
|
328 |
|
|
|
252 |
|
|
|
270 |
|
Total loans(1)(2) |
|
$ |
2,265,257 |
|
|
$ |
2,322,576 |
|
|
$ |
2,318,249 |
|
|
$ |
2,333,901 |
|
|
$ |
2,377,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Quarter Ended |
|
|||||||||||||||||
|
|
2024 |
|
|
2023 |
|
||||||||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
ALLOWANCE FOR CREDIT LOSSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance at beginning of period |
|
$ |
30,920 |
|
|
$ |
31,140 |
|
|
$ |
31,759 |
|
|
$ |
31,953 |
|
|
$ |
31,974 |
|
Loans charged-off |
|
|
(310 |
) |
|
|
(242 |
) |
|
|
(644 |
) |
|
|
(224 |
) |
|
|
(94 |
) |
Recoveries |
|
|
200 |
|
|
|
22 |
|
|
|
25 |
|
|
|
30 |
|
|
|
73 |
|
Reversal of provision for credit loss expense |
|
|
(250 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Balance at end of period |
|
$ |
30,560 |
|
|
$ |
30,920 |
|
|
$ |
31,140 |
|
|
$ |
31,759 |
|
|
$ |
31,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for credit losses / period-end loans |
|
|
1.35 |
% |
|
|
1.33 |
% |
|
|
1.34 |
% |
|
|
1.36 |
% |
|
|
1.34 |
% |
Allowance for credit losses / nonperforming loans |
|
|
496.0 |
|
|
|
552.9 |
|
|
|
1,148.2 |
|
|
|
894.6 |
|
|
|
238.4 |
|
Net charge-offs / average loans (annualized) |
|
|
0.02 |
|
|
|
0.04 |
|
|
|
0.11 |
|
|
|
0.03 |
|
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NONPERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Nonaccrual loans |
|
$ |
6,161 |
|
|
$ |
5,592 |
|
|
$ |
2,712 |
|
|
$ |
3,550 |
|
|
$ |
13,405 |
|
Other real estate owned |
|
|
14,900 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
38 |
|
Repossessed assets owned |
|
|
236 |
|
|
|
234 |
|
|
|
250 |
|
|
|
— |
|
|
|
— |
|
Total nonperforming assets |
|
$ |
21,297 |
|
|
$ |
5,826 |
|
|
$ |
2,962 |
|
|
$ |
3,550 |
|
|
$ |
13,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Nonperforming assets as a percentage of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total loans(1)(2) |
|
|
0.94 |
% |
|
|
0.25 |
% |
|
|
0.13 |
% |
|
|
0.15 |
% |
|
|
0.57 |
% |
Total assets |
|
|
0.68 |
|
|
|
0.18 |
|
|
|
0.09 |
|
|
|
0.11 |
|
|
|
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(1) Excludes outstanding balances of loans held for sale of |
|
|||||||||||||||||||
(2) Excludes deferred loan fees of |
|
|
|
Quarter Ended |
|
|||||||||||||||||
|
|
2024 |
|
|
2023 |
|
||||||||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Service charges |
|
$ |
1,069 |
|
|
$ |
1,123 |
|
|
$ |
1,131 |
|
|
$ |
1,056 |
|
|
$ |
1,077 |
|
Net realized (loss) gain on securities transactions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(322 |
) |
|
|
93 |
|
Net realized gain on sale of loans |
|
|
272 |
|
|
|
196 |
|
|
|
218 |
|
|
|
473 |
|
|
|
314 |
|
Fiduciary and custodial income |
|
|
649 |
|
|
|
624 |
|
|
|
637 |
|
|
|
630 |
|
|
|
638 |
|
Bank-owned life insurance income |
|
|
251 |
|
|
|
249 |
|
|
|
267 |
|
|
|
211 |
|
|
|
214 |
|
Merchant and debit card fees |
|
|
1,706 |
|
|
|
1,760 |
|
|
|
1,752 |
|
|
|
2,121 |
|
|
|
1,674 |
|
Loan processing fee income |
|
|
118 |
|
|
|
116 |
|
|
|
128 |
|
|
|
142 |
|
|
|
134 |
|
Mortgage fee income |
|
|
41 |
|
|
|
30 |
|
|
|
46 |
|
|
|
50 |
|
|
|
68 |
|
Other noninterest income |
|
|
1,152 |
|
|
|
698 |
|
|
|
760 |
|
|
|
3,512 |
|
|
|
693 |
|
Total noninterest income |
|
$ |
5,258 |
|
|
$ |
4,796 |
|
|
$ |
4,939 |
|
|
$ |
7,873 |
|
|
$ |
4,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Employee compensation and benefits |
|
$ |
12,437 |
|
|
$ |
12,715 |
|
|
$ |
11,944 |
|
|
$ |
11,939 |
|
|
$ |
12,264 |
|
Occupancy expenses |
|
|
2,747 |
|
|
|
2,757 |
|
|
|
2,960 |
|
|
|
2,754 |
|
|
|
2,830 |
|
Legal and professional fees |
|
|
772 |
|
|
|
954 |
|
|
|
902 |
|
|
|
985 |
|
|
|
583 |
|
Software and technology |
|
|
1,642 |
|
|
|
1,740 |
|
|
|
1,490 |
|
|
|
1,531 |
|
|
|
1,396 |
|
Amortization |
|
|
143 |
|
|
|
145 |
|
|
|
147 |
|
|
|
149 |
|
|
|
161 |
|
Director and committee fees |
|
|
200 |
|
|
|
186 |
|
|
|
192 |
|
|
|
201 |
|
|
|
199 |
|
Advertising and promotions |
|
|
169 |
|
|
|
352 |
|
|
|
288 |
|
|
|
269 |
|
|
|
267 |
|
ATM and debit card expense |
|
|
609 |
|
|
|
763 |
|
|
|
803 |
|
|
|
739 |
|
|
|
599 |
|
Telecommunication expense |
|
|
173 |
|
|
|
175 |
|
|
|
178 |
|
|
|
171 |
|
|
|
183 |
|
|
|
|
360 |
|
|
|
321 |
|
|
|
363 |
|
|
|
522 |
|
|
|
301 |
|
Other noninterest expense |
|
|
1,440 |
|
|
|
1,294 |
|
|
|
1,247 |
|
|
|
1,211 |
|
|
|
1,184 |
|
Total noninterest expense |
|
$ |
20,692 |
|
|
$ |
21,402 |
|
|
$ |
20,514 |
|
|
$ |
20,471 |
|
|
$ |
19,967 |
|
|
|
Quarter Ended |
|
|||||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
||||||||||||||||||
(dollars in thousands) |
|
Average
|
|
|
Interest
|
|
|
Average
|
|
|
Average
|
|
|
Interest
|
|
|
Average
|
|
||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total loans(1) |
|
$ |
2,299,177 |
|
|
$ |
35,491 |
|
|
|
6.21 |
% |
|
$ |
2,388,045 |
|
|
$ |
32,157 |
|
|
|
5.46 |
% |
Securities available for sale |
|
|
216,298 |
|
|
|
1,851 |
|
|
|
3.44 |
|
|
|
184,572 |
|
|
|
1,068 |
|
|
|
2.35 |
|
Securities held to maturity |
|
|
393,394 |
|
|
|
2,533 |
|
|
|
2.59 |
|
|
|
502,760 |
|
|
|
3,050 |
|
|
|
2.46 |
|
Nonmarketable equity securities |
|
|
24,438 |
|
|
|
248 |
|
|
|
4.08 |
|
|
|
28,381 |
|
|
|
419 |
|
|
|
5.99 |
|
Interest-bearing deposits in other banks |
|
|
45,672 |
|
|
|
629 |
|
|
|
5.54 |
|
|
|
34,986 |
|
|
|
450 |
|
|
|
5.22 |
|
Total interest-earning assets |
|
|
2,978,979 |
|
|
|
40,752 |
|
|
|
5.50 |
|
|
|
3,138,744 |
|
|
|
37,144 |
|
|
|
4.80 |
|
Allowance for credit losses |
|
|
(30,879 |
) |
|
|
|
|
|
|
|
|
(31,934 |
) |
|
|
|
|
|
|
||||
Noninterest-earning assets |
|
|
230,829 |
|
|
|
|
|
|
|
|
|
218,195 |
|
|
|
|
|
|
|
||||
Total assets |
|
$ |
3,178,929 |
|
|
|
|
|
|
|
|
$ |
3,325,005 |
|
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing deposits |
|
$ |
1,789,119 |
|
|
$ |
14,459 |
|
|
|
3.25 |
% |
|
$ |
1,624,610 |
|
|
$ |
7,655 |
|
|
|
1.91 |
% |
Advances from FHLB and fed funds purchased |
|
|
141,593 |
|
|
|
1,920 |
|
|
|
5.45 |
|
|
|
310,103 |
|
|
|
3,774 |
|
|
|
4.94 |
|
Line of credit |
|
|
841 |
|
|
|
18 |
|
|
|
8.61 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Subordinated debt |
|
|
45,797 |
|
|
|
517 |
|
|
|
4.54 |
|
|
|
49,164 |
|
|
|
540 |
|
|
|
4.45 |
|
Securities sold under agreements to repurchase |
|
|
41,271 |
|
|
|
251 |
|
|
|
2.45 |
|
|
|
10,974 |
|
|
|
13 |
|
|
|
0.48 |
|
Total interest-bearing liabilities |
|
|
2,018,621 |
|
|
|
17,165 |
|
|
|
3.42 |
|
|
|
1,994,851 |
|
|
|
11,982 |
|
|
|
2.44 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Noninterest-bearing deposits |
|
|
823,638 |
|
|
|
|
|
|
|
|
|
1,002,793 |
|
|
|
|
|
|
|
||||
Accrued interest and other liabilities |
|
|
35,469 |
|
|
|
|
|
|
|
|
|
26,912 |
|
|
|
|
|
|
|
||||
Total noninterest-bearing liabilities |
|
|
859,107 |
|
|
|
|
|
|
|
|
|
1,029,705 |
|
|
|
|
|
|
|
||||
Equity |
|
|
301,201 |
|
|
|
|
|
|
|
|
|
300,449 |
|
|
|
|
|
|
|
||||
Total liabilities and equity |
|
$ |
3,178,929 |
|
|
|
|
|
|
|
|
$ |
3,325,005 |
|
|
|
|
|
|
|
||||
Net interest rate spread(2) |
|
|
|
|
|
|
|
|
2.08 |
% |
|
|
|
|
|
|
|
|
2.36 |
% |
||||
Net interest income |
|
|
|
|
$ |
23,587 |
|
|
|
|
|
|
|
|
$ |
25,162 |
|
|
|
|
||||
Net interest margin(3) |
|
|
|
|
|
|
|
|
3.18 |
% |
|
|
|
|
|
|
|
|
3.25 |
% |
||||
Net interest margin, fully taxable equivalent(4) |
|
|
|
|
|
|
|
|
3.16 |
% |
|
|
|
|
|
|
|
|
3.24 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(1) Includes average outstanding balances of loans held for sale of |
|
|||||||||||||||||||||||
(2) Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities. |
|
|||||||||||||||||||||||
(3) Net interest margin is equal to net interest income divided by average interest-earning assets, annualized. |
|
|||||||||||||||||||||||
(4) Net interest margin on a fully taxable equivalent basis is equal to net interest income adjusted for nontaxable income divided by average interest-earning assets, annualized, using a marginal tax rate of 21%. |
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP RECONCILING TABLES
Tangible Book Value per Common Share
|
|
As of |
|
|||||||||||||||||
|
|
2024 |
|
|
2023 |
|
||||||||||||||
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Equity attributable to |
|
$ |
305,371 |
|
|
$ |
303,300 |
|
|
$ |
296,226 |
|
|
$ |
296,862 |
|
|
$ |
299,700 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
(32,160 |
) |
|
|
(32,160 |
) |
|
|
(32,160 |
) |
|
|
(32,160 |
) |
|
|
(32,160 |
) |
Core deposit intangible, net |
|
|
(1,312 |
) |
|
|
(1,418 |
) |
|
|
(1,524 |
) |
|
|
(1,633 |
) |
|
|
(1,746 |
) |
Total tangible common equity attributable to |
|
$ |
271,899 |
|
|
$ |
269,722 |
|
|
$ |
262,542 |
|
|
$ |
263,069 |
|
|
$ |
265,794 |
|
Common shares outstanding(1) |
|
|
11,534,960 |
|
|
|
11,540,644 |
|
|
|
11,554,094 |
|
|
|
11,603,167 |
|
|
|
11,925,357 |
|
Book value per common share |
|
$ |
26.47 |
|
|
$ |
26.28 |
|
|
$ |
25.64 |
|
|
$ |
25.58 |
|
|
$ |
25.13 |
|
Tangible book value per common share(1) |
|
|
23.57 |
|
|
|
23.37 |
|
|
|
22.72 |
|
|
|
22.67 |
|
|
|
22.29 |
|
(1) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options. |
Net Unrealized Loss on Securities, Tax Effected, as a Percentage of Total Equity
(dollars in thousands) |
|
|
|
|
Total equity(1) |
|
$ |
305,910 |
|
Less: net unrealized loss on HTM securities, tax effected |
|
|
(25,662 |
) |
Total equity, including net unrealized loss on AFS and HTM securities |
|
$ |
280,248 |
|
|
|
|
|
|
Net unrealized loss on AFS securities, tax effected |
|
|
16,709 |
|
Net unrealized loss on HTM securities, tax effected |
|
|
25,662 |
|
Net unrealized loss on AFS and HTM securities, tax effected |
|
$ |
42,371 |
|
|
|
|
|
|
Net unrealized loss on securities as % of total equity(1) |
|
|
13.9 |
% |
Total equity before impact of unrealized losses |
|
$ |
322,619 |
|
Net unrealized loss on securities as % of total equity before impact of unrealized losses |
|
|
13.1 |
% |
|
|
|
|
|
Total average assets |
|
$ |
3,178,929 |
|
Total equity to average assets |
|
|
9.6 |
% |
Total equity, adjusted for tax effected net unrealized loss, to average assets |
|
|
8.8 |
% |
|
|
|
|
|
(1) Includes the net unrealized loss on AFS securities, tax effected, of |
|
|
|
Cost of Total Deposits
|
|
Quarter Ended |
|
|||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|||
Total average interest-bearing deposits |
|
$ |
1,789,119 |
|
|
$ |
1,788,863 |
|
|
$ |
1,624,610 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|||
Noninterest-bearing deposits |
|
|
823,638 |
|
|
|
865,817 |
|
|
|
1,002,793 |
|
Total average deposits |
|
$ |
2,612,757 |
|
|
$ |
2,654,680 |
|
|
$ |
2,627,403 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total deposit-related interest expense |
|
$ |
14,459 |
|
|
$ |
14,311 |
|
|
$ |
7,655 |
|
|
|
|
|
|
|
|
|
|
|
|||
Average cost of interest-bearing deposits |
|
|
3.25 |
% |
|
|
3.17 |
% |
|
|
1.91 |
% |
Average cost of total deposits |
|
|
2.23 |
|
|
|
2.14 |
|
|
|
1.18 |
|
About Non-GAAP Financial Measures
Certain of the financial measures and ratios we present, including “tangible book value per common share,” “net unrealized loss on securities, tax effected, as a percentage of total equity” and “cost of total deposits” are supplemental measures that are not required by, or are not presented in accordance with,
These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.
A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.
Conference Call Information
The Company will hold a conference call to discuss first quarter 2024 financial results on
About
Cautionary Statement Regarding Forward-Looking Information
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our results of operations, financial condition and financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Such factors include, without limitation, the “Risk Factors” referenced in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, and other risks and uncertainties listed from time to time in our reports and documents filed with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240415092208/en/
Executive Vice President and Chief Financial Officer
(888) 572-9881
investors@gnty.com
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