- Guaranty Bancshares (GNTY, Financial) reported net income of $8.6 million in Q1 2025, a 28% increase year-over-year.
- Net interest margin improved to 3.70%, up from 3.16% a year ago.
- Total deposits grew by $12.2 million to $2.70 billion, while gross loans decreased by $23.0 million.
Guaranty Bancshares, Inc. (GNTY) has released its financial results for the first quarter of 2025, showing a net income increase to $8.6 million, or $0.76 per basic share. This represents a year-over-year growth of 28% when compared to Q1 2024. However, this was a 14% decrease from the previous quarter's $10.0 million.
The company's financial performance was bolstered by a net interest margin increase to 3.70%, significantly up from 3.16% in the same quarter last year. This improvement was driven by reduced costs of interest-bearing deposits, which fell to 2.83% compared to the previous quarter's 3.07%.
Guaranty Bancshares maintained strong asset quality, with nonperforming assets at a low of 0.15% of total assets. Despite this, gross loans decreased by $23.0 million to a total of $2.11 billion, which indicates a potential area of concern for future revenue growth.
Total deposits saw an increase of $12.2 million, reaching $2.70 billion by the end of Q1 2025. This growth was supported by a favorable deposit mix, with 31.3% in non-interest-bearing accounts. The efficiency ratio slightly deteriorated to 66.78%, influenced by increased employee compensation and other noninterest expenses.
During the quarter, the company repurchased 127,537 shares at an average price of $40.56 per share, illustrating management's confidence in the company’s financial stability. Additionally, the quarterly dividend was increased from $0.24 to $0.25 per share, highlighting a continued commitment to returning value to shareholders.
