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Guaranty Bancshares (GNTY)
:GNTY
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Guaranty Bancshares (GNTY) AI Stock Analysis

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GNTY

Guaranty Bancshares

(NYSE:GNTY)

Rating:75Outperform
Price Target:
$48.00
▲(7.58%Upside)
Guaranty Bancshares scores well due to its solid financial performance and positive technical indicators. The impending merger with Glacier Bancorp is a major strategic move that is likely to enhance future growth prospects. The valuation is fair, and the earnings call highlights a strong financial position, despite some challenges.

Guaranty Bancshares (GNTY) vs. SPDR S&P 500 ETF (SPY)

Guaranty Bancshares Business Overview & Revenue Model

Company DescriptionGuaranty Bancshares, Inc. (NASDAQ: GNTY) is a bank holding company headquartered in Texas, United States. It operates through its wholly-owned subsidiary, Guaranty Bank & Trust, which has been serving customers since 1913. The bank provides a wide array of financial services to individuals, businesses, and governmental entities. Its offerings include personal and commercial banking services, mortgage lending, and wealth management solutions. With a focus on community-oriented banking, Guaranty Bancshares aims to deliver personalized service and innovative financial products to meet the needs of its clients.
How the Company Makes MoneyGuaranty Bancshares generates revenue primarily through interest income derived from its lending activities. The bank earns interest by providing various types of loans, including commercial, residential mortgage, and consumer loans. In addition to interest income, Guaranty Bancshares also earns non-interest income through service charges on deposit accounts, fees from wealth management and investment services, and income from mortgage loan sales. The company benefits from strategic partnerships with local businesses and community organizations, which help expand its customer base and enhance its service offerings. Guaranty Bancshares' earnings are influenced by interest rate fluctuations, economic conditions, and regulatory factors that impact the banking industry.

Guaranty Bancshares Earnings Call Summary

Earnings Call Date:Jul 21, 2025
(Q1-2025)
|
% Change Since: -1.98%|
Next Earnings Date:Oct 20, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with strong asset growth, improved net interest margin, and increased dividends, demonstrating financial resilience. Although there are some challenges with decreases in net loans and noninterest income, as well as increased expenses, the overall financial position remains robust.
Q1-2025 Updates
Positive Updates
Increase in Total Assets
Total assets increased by $37 million during the first quarter, with cash up nearly $72 million due to loan and securities-related cash flows.
Improvement in Net Interest Margin
Net interest margin increased to 3.7% in the first quarter from 3.54% in the fourth quarter and 3.16% during the same quarter last year.
Improvement in Unrealized Losses
Unrealized losses on AFS securities pretax decreased from $20.8 million to $14.7 million, an improvement of about $6 million.
Increased Dividend
Dividend increased to $0.25 per share from $0.24 per share for each quarter in 2024.
Strong Liquidity Position
Liquidity ratio stands at 19.8% compared to 16.5% at year-end, with significant cash balances and contingent liquidity available.
Low Nonperforming Assets
Nonperforming assets remain at low levels with NPAs to total assets at 0.15% at March 31st.
Negative Updates
Decrease in Net Loans
Net loans decreased by $23 million during the first quarter.
Noninterest Income Decrease
Noninterest income decreased by $693,000 during the first quarter compared to the fourth quarter.
Increased Noninterest Expense
Noninterest expense increased by $1.3 million in the first quarter compared to the fourth quarter.
Decreased Return on Average Assets and Equity
Return on average assets decreased to 1.13% from 1.27% last quarter, and return on average equity decreased to 10.83% from 12.68%.
Company Guidance
During the first quarter of 2025, Guaranty Bancshares, Inc. experienced a net interest margin increase to 3.7%, up from 3.54% in the fourth quarter of 2024 and 3.16% in the same quarter last year, driven by the repricing of loan securities and deposits. Total assets grew by $37 million, with cash increasing by $72 million and deposits rising by $12.2 million. Despite a $23 million decrease in net loans and a $7.2 million drop in the securities portfolio, the bank's solid loan pipeline suggests potential growth. Net income stood at $8.6 million, contributing to a $6.7 million equity increase. The bank maintained a return on average assets of 1.13% and a return on average equity of 10.83%. The efficiency ratio was reported at 66.78%, and the allowance for credit losses was 1.32% of total loans. Guaranty Bancshares also executed a share repurchase of 127,537 shares and declared a $0.25 per share dividend, highlighting its strong capital position and strategic growth opportunities.

Guaranty Bancshares Financial Statement Overview

Summary
Guaranty Bancshares exhibits solid financial health with consistent revenue growth and strong cash flow generation. The company's balance sheet is strengthening, with declining leverage ratios and a stable equity position. However, profitability margins have faced some pressure, which slightly tempers the overall score.
Income Statement
68
Positive
Guaranty Bancshares has shown consistent revenue growth, with a notable increase in total revenue from $119.1M in 2020 to $180.0M in TTM 2025. The gross profit margin remains strong at around 67% in TTM 2025, indicating efficient cost management. However, there is a declining trend in net profit margin from 27% in 2020 to 19% in TTM 2025, which raises concern about profitability pressures.
Balance Sheet
75
Positive
The company's balance sheet reflects a healthy equity ratio of approximately 10% in TTM 2025, showing a stable capital structure. The debt-to-equity ratio has improved significantly, dropping from 1.27 in 2020 to a more manageable 0.28 in TTM 2025, reflecting reduced leverage. However, the return on equity has slightly decreased from 14.2% in 2020 to 10.3% in TTM 2025, indicating less efficient equity utilization.
Cash Flow
72
Positive
Guaranty Bancshares demonstrates strong cash flow generation, with free cash flow growing from $36.6M in 2020 to $56.5M in TTM 2025. The operating cash flow to net income ratio is robust, indicating effective cash conversion from earnings. However, fluctuations in investing cash flow and a negative financing cash flow in the recent periods suggest potential volatility in cash management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue180.89M176.10M146.69M127.13M119.09M
Gross Profit117.81M116.59M129.16M121.83M92.83M
EBITDA43.98M41.91M54.19M54.07M38.76M
Net Income31.54M30.04M40.45M39.81M27.40M
Balance Sheet
Total Assets3.12B3.18B3.35B3.09B2.74B
Cash, Cash Equivalents and Short-Term Investments110.78M249.14M248.12M409.84M513.76M
Total Debt72.99M215.46M346.37M86.46M156.54M
Total Liabilities2.80B2.88B3.06B2.78B2.47B
Stockholders Equity318.50M303.30M294.98M302.21M272.64M
Cash Flow
Free Cash Flow44.11M32.43M33.16M40.65M36.62M
Operating Cash Flow47.42M39.21M38.85M43.54M42.52M
Investing Cash Flow107.71M144.03M-684.96M-202.68M-165.77M
Financing Cash Flow-98.69M-200.18M252.98M306.95M384.32M

Guaranty Bancshares Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price44.62
Price Trends
50DMA
42.75
Positive
100DMA
40.98
Positive
200DMA
38.55
Positive
Market Momentum
MACD
0.86
Positive
RSI
51.69
Neutral
STOCH
51.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNTY, the sentiment is Neutral. The current price of 44.62 is below the 20-day moving average (MA) of 45.14, above the 50-day MA of 42.75, and above the 200-day MA of 38.55, indicating a neutral trend. The MACD of 0.86 indicates Positive momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 51.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GNTY.

Guaranty Bancshares Risk Analysis

Guaranty Bancshares disclosed 65 risk factors in its most recent earnings report. Guaranty Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Guaranty Bancshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$511.90M10.179.29%2.95%7.40%
75
Outperform
$506.24M14.2111.28%2.17%1.61%38.81%
74
Outperform
$575.45M14.2512.19%1.13%18.85%6.74%
72
Outperform
$458.89M11.648.70%4.02%6.33%3.44%
62
Neutral
AU$10.03B9.0411.83%4.87%33.36%41.81%
59
Neutral
$529.29M8.52-16.42%4.68%-29.94%-178.36%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GNTY
Guaranty Bancshares
45.20
10.65
30.82%
BHB
Bar Harbor Bankshares
30.35
-1.15
-3.65%
CCNE
Cnb Financial
24.01
-1.37
-5.40%
FISI
Financial Institutions
26.06
1.44
5.85%
CBNK
Capital Bancorp
34.24
8.73
34.22%

Guaranty Bancshares Corporate Events

M&A TransactionsBusiness Operations and Strategy
Guaranty Bancshares Announces Merger with Glacier Bancorp
Positive
Jun 25, 2025

On June 24, 2025, Guaranty Bancshares, Inc. and its subsidiary Guaranty Bank & Trust entered into a merger agreement with Glacier Bancorp, Inc. and its subsidiary Glacier Bank. Under the agreement, Guaranty Bancshares will merge into Glacier Bancorp, with Glacier Bancorp as the surviving entity. The merger is valued at approximately $476.2 million and is expected to close in the fourth quarter of 2025, subject to regulatory and shareholder approvals. The merger aims to consolidate operations and expand market reach, impacting stakeholders by potentially enhancing financial performance and operational efficiency.

The most recent analyst rating on (GNTY) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Guaranty Bancshares stock, see the GNTY Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Guaranty Bancshares Announces Merger with Glacier Bancorp
Positive
Jun 24, 2025

On June 24, 2025, Guaranty Bancshares, Inc. and Glacier Bancorp, Inc. announced a merger agreement where Guaranty will merge with Glacier in an all-stock transaction valued at $476.2 million. This acquisition, marking Glacier’s 27th since 2000, will expand Glacier’s presence into Texas, with Guaranty Bank & Trust operating as a new division under Glacier Bank. The merger is expected to close in the fourth quarter of 2025, subject to regulatory and shareholder approvals. This strategic move aims to leverage Texas’s strong economic profile, providing growth opportunities and enhanced resources for Guaranty’s existing and future customers.

The most recent analyst rating on (GNTY) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Guaranty Bancshares stock, see the GNTY Stock Forecast page.

Dividends
Guaranty Bancshares Declares Quarterly Cash Dividend
Positive
Jun 20, 2025

On June 20, 2025, Guaranty Bancshares, Inc. announced the declaration of a quarterly cash dividend of $0.25 per share of common stock, to be paid on July 9, 2025, to shareholders recorded by June 30, 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders and may enhance its attractiveness in the financial market.

The most recent analyst rating on (GNTY) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Guaranty Bancshares stock, see the GNTY Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Guaranty Bancshares Shareholders Approve Key Amendments
Neutral
May 22, 2025

On May 21, 2025, Guaranty Bancshares, Inc. held its Annual Meeting of Shareholders where several key decisions were made. The shareholders approved an amendment to the 2015 Equity Incentive Plan, extending the term for granting stock options to 2035, eliminating the evergreen mechanism, and making other administrative changes. Additionally, the election of Class I directors was confirmed, executive compensation was approved on an advisory basis, and Whitley Penn LLP was ratified as the independent registered public accounting firm for 2025.

The most recent analyst rating on (GNTY) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Guaranty Bancshares stock, see the GNTY Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2025