Guaranty Bancshares Inc (GNTY, Financial) released its Q3 2023 financial results on October 16, 2023. The company reported a net income of $6.3 million, down from $9.6 million in Q2 2023 and $10.9 million in Q3 2022. The decrease in earnings was primarily due to a one-time gain on the sale of nonmarketable correspondent bank stock of $2.8 million during the second quarter. Without this one-time gain, net of tax, earnings for the second quarter were $7.4 million.
Company Performance and Financial Highlights
Despite the decrease in earnings, the company's Chairman and Chief Executive Officer, Ty Abston, stated that the company is performing well amidst various economic and industry headwinds. The company's strong asset quality and healthy capital position have been maintained, with historically low nonperforming assets. The company also repurchased 61,688 shares of stock during the quarter at an attractive average price of $27.38 per share.
As of September 30, 2023, the company had 87,208 total deposit accounts with an average account balance of $30,482. Total deposits increased by $55.5 million during the third quarter, primarily due to an increase in core deposits of $75.7 million, offset by a decrease in public funds deposits of $20.2 million.
Asset Quality and Capital Position
Nonperforming assets as a percentage of total assets were 0.09% at September 30, 2023, compared to 0.11% at June 30, 2023 and 0.28% at September 30, 2022. The company's capital and liquidity ratios remain healthy, with a liquidity ratio of 14.0% as of quarter-end. The company's total equity to average assets as on September 30, 2023 is 9.2%.
Outlook
Despite signs of a slowing economy, Guaranty Bancshares Inc (GNTY, Financial) remains well-positioned with a strong balance sheet and stable core deposit base. The company will continue to focus on strategic goals and operational efficiencies that will drive long term shareholder value.
