Guaranty Bancshares, Inc. (GNTY) | Investment Case

1. Company Snapshot

1.a. Company Description

Guaranty Bancshares, Inc.operates as the bank holding company for Guaranty Bank & Trust, N.A. that provides a range of commercial and consumer banking products and services for small- and medium-sized businesses, professionals, and individuals.The company offers checking and savings, money market, and business accounts, as well as certificates of deposit; and commercial and industrial, construction and development, 1-4 family residential, commercial real estate, farmland and agricultural, multi-family residential, and consumer loans.

It also provides trustee, custodial and escrow, investment management, retirement plan, ATM, night depository, direct deposit, and cashier's check services, as well as online, mobile, and telephone banking services; debit cards; letters of credit; and treasury management services, including wire transfer, positive pay, remote deposit capture, and automated clearinghouse services.As of December 31, 2021, it operated 32 full-service banking locations in East Texas, Central Texas, the Dallas/Fort Worth metropolitan statistical area (MSA) and the Houston MSA.The company was founded in 1913 and is headquartered in Addison, Texas.

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1.b. Last Insights on GNTY

Guaranty Bancshares, Inc.'s recent performance was driven by its announced conditional special cash dividend, set to be paid to shareholders, with a record date of September 19, 2025. This move comes as part of its merger agreement with Glacier Bancorp, Inc. Additionally, the company continues to demonstrate community involvement, as seen in its sponsorship of the 29th Annual Dallas Mayor's Back to School Fair, promoting financial literacy. The investigation into the fairness of the sale to Glacier Bancorp may impact shareholder sentiment.

1.c. Company Highlights

Last Price	48.75
Change Percentage	-0.87%
Open	49.47
Previous Close	49.18
Market Cap ( Millions)	553
Volume	168821
Year High	52.34
Year Low	32.04
M A 50	47.4
M A 200	42.17

FCF Yield	8.06%
Dividend Yield	6.24%
ROE	11.15%
Debt / Equity	21.82%
Net Debt / EBIDTA	65.60%
Price To Book	1.67
Price Earnings Ratio	15.34
Price To FCF	12.4
Price To sales	3.04
EV / EBITDA	12.0

2. Guaranty Bancshares Delivers Solid Q1 2025 Results Amid Economic Uncertainty

Guaranty Bancshares, Inc. reported a robust first-quarter 2025 performance, showcasing resilience despite broader economic challenges. Total assets grew by $37 million, reaching a notable figure, while cash balances surged $72 million to $217.8 million, underscoring strong liquidity. However, net loans declined $23 million, and total securities dipped $7.2 million, reflecting a cautious approach amid economic uncertainty. The company returned $5.2 million to shareholders through share repurchases and increased its dividend to $0.25 per share, signaling confidence in its financial health. The net interest margin (NIM) improved to 3.7%, benefiting from Fed rate cuts and loan repricing, while the efficiency ratio stood at 66.78%, indicating room for operational optimization.

Publication Date: Apr -22

                                    📋 Highlights
                                    Asset and Cash Growth:
                                                Total assets increased by $37 million, with cash rising $72 million, reflecting strong liquidity and balance sheet strength.
Shareholder Returns:
                                                The company repurchased $5.2 million in shares and increased its dividend to $0.25 per share, enhancing shareholder value.
Net Interest Margin Improvement:
                                                The net interest margin improved to 3.7%, supported by Fed rate cuts and loan repricing, providing tailwinds for future performance.
Strong Asset Quality:
                                                Nonperforming assets improved to 0.15% of total assets, with net charge-offs at 0.02%, indicating healthy loan portfolio performance.
Optimistic Outlook:
                                                Management remains optimistic about future growth, supported by a robust Texas economy, with expectations for loan growth to resume once economic clarity improves.

                                

Balance Sheet and Asset Quality

The balance sheet remains sturdy, with total equity rising $6.7 million and capital levels well-positioned to support growth. Asset quality improved, with nonperforming assets (NPAs) at 0.15% of total assets and net charge-offs at a low 0.02%, highlighting effective risk management. However, loan demand slowed due to economic uncertainty, though the pipeline remains strong, suggesting potential for future growth once clarity improves.

Management Outlook and Strategic Focus

Management expressed optimism about future growth, supported by a robust Texas economy, and anticipates loan growth to resume as economic conditions stabilize. The company is focused on maintaining balance sheet liquidity and granularity in its loan portfolio, with low average balances in real estate and C&I loans, reducing potential risks. Share buybacks are seen as a good use of excess capital, with 950,000 shares remaining under the current authorization. The bank aims to maintain an expense-to-average-asset ratio of 2.5%, with flexibility to adjust based on revenue growth.

Valuation and Analyst Estimates

Trading at a price-to-tangible book value (P/TBV) of 1.46 and a dividend yield of 2.39%, Guaranty Bancshares appears attractively valued relative to its peers. Analysts estimate revenue growth of 4.7% next year, supported by continued net interest margin tailwinds and a strong Texas economy. The stock's current valuation reflects cautious optimism, with the market pricing in moderate growth expectations. As loan demand stabilizes and economic clarity improves, Guaranty Bancshares is well-positioned to deliver sustained profitability and shareholder value.

3. NewsRoom

Glacier Bancorp Completes Acquisition of Guaranty Bancshares, Inc. in Mount Pleasant, Texas

Oct -01

Source: globenewswire.com

Guaranty Bancshares, Inc. Announces Record Date for Conditional Special Cash Dividend

Sep -09

Source: businesswire.com

ITEOS THERAPEUTICS INVESTOR ALERT BY THE FORMER ATTORNEY GENERAL OF LOUISIANA: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of iTeos Therapeutics, Inc. - ITOS

Aug -20

Source: globenewswire.com

SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates OLO, GNTY, ENZB on Behalf of Shareholders

Jul -16

Source: prnewswire.com

Guaranty Bank & Trust Returns as Sponsor of 29th Annual Dallas Mayor's Back to School Fair, Expanding Focus on Financial Literacy

Jul -11

Source: businesswire.com

Are You Looking for a High-Growth Dividend Stock?

Jul -09

Source: zacks.com

$HAREHOLDER ALERT: Class Action Attorney Juan Monteverde Investigates the Merger of Guaranty Bancshares, Inc. (NYSE: GNTY)

Jun -30

Source: globenewswire.com

SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates CARM, ENZB, GNTY on Behalf of Shareholders

Jun -27

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Banking and Related Activities

Expected Growth: 1.0%

Guaranty Bancshares, Inc.'s 1.0% growth in Banking and Related Activities is driven by increasing loan demand, expansion of commercial banking services, and strategic acquisitions. Additionally, the company's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment contribute to its growth.

7. Detailed Products

Commercial Banking

Guaranty Bancshares, Inc. offers a range of commercial banking services, including cash management, treasury management, and commercial lending to businesses of all sizes.

Consumer Banking

The company provides consumer banking services, including checking and savings accounts, credit cards, personal loans, and mortgages to individuals.

Wealth Management

Guaranty Bancshares, Inc. offers wealth management services, including investment management, trust services, and financial planning to individuals and businesses.

Mortgage Banking

The company provides mortgage banking services, including residential and commercial mortgage lending, to individuals and businesses.

Treasury Management

Guaranty Bancshares, Inc. offers treasury management services, including cash management, wire transfers, and account reconciliation, to businesses.

8. Guaranty Bancshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Guaranty Bancshares, Inc. operates in a highly competitive industry, with many substitutes available to customers. However, the company's strong brand recognition and customer loyalty help to mitigate this threat.

Bargaining Power Of Customers

Guaranty Bancshares, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are not highly differentiated, which further reduces customer bargaining power.

Bargaining Power Of Suppliers

Guaranty Bancshares, Inc. has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company also has a strong negotiating position due to its large scale of operations.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This makes it difficult for new entrants to enter the market and compete with established players like Guaranty Bancshares, Inc.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Guaranty Bancshares, Inc. faces intense competition from other banks and financial institutions, which can lead to pricing pressure and reduced profitability.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	38.55%
Debt Cost	6.73%
Equity Weight	61.45%
Equity Cost	6.73%
WACC	6.73%
Leverage	62.74%

11. Quality Control: Guaranty Bancshares, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Guaranty Bancshares

A-Score: 7.2/10

Value: 4.9

Growth: 5.6

Quality: 7.8

Yield: 8.0

Momentum: 9.5

Volatility: 7.3

1-Year Total Return ->

Ames National

A-Score: 6.9/10

Value: 7.2

Growth: 3.6

Quality: 6.2

Yield: 8.0

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

FirstBank

A-Score: 6.2/10

Value: 6.4

Growth: 6.7

Quality: 5.9

Yield: 4.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

Eagle Bancorp Montana

A-Score: 6.1/10

Value: 6.9

Growth: 5.2

Quality: 3.4

Yield: 6.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

Pathward Financial

A-Score: 5.7/10

Value: 8.7

Growth: 4.2

Quality: 8.2

Yield: 0.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

HomeStreet

A-Score: 4.6/10

Value: 9.4

Growth: 1.9

Quality: 3.8

Yield: 3.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.73%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.73%

Guaranty Bancshares, Inc. - US4007641065

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on GNTY

1.c. Company Highlights

Average Quality

Fairly Valued

Stable Momentum

Earnings Beats

Better Quality

Revenues Beats

Average Growth

Medium Volatility

Revenues Miss

Average Yield

Expensive

Strong Momentum

Earnings Miss

Lower Growth

2. Guaranty Bancshares Delivers Solid Q1 2025 Results Amid Economic Uncertainty

Balance Sheet and Asset Quality

Management Outlook and Strategic Focus

Valuation and Analyst Estimates

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Banking and Related Activities

Expected Growth: 1.0%

7. Detailed Products

Commercial Banking

Consumer Banking

Wealth Management

Mortgage Banking

Treasury Management

8. Guaranty Bancshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Guaranty Bancshares, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

48.75$

Current Price

48.75$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA