Guaranty Bancshares, Inc. Reports Third Quarter 2019 Financial Results
Guaranty Bancshares, Inc. (NASDAQ: GNTY), the parent company of Guaranty Bank & Trust, N.A., today reported financial results for the fiscal quarter ended September 30, 2019. The company's net income available to common shareholders was $7.5 million, or $0.65 per basic share, for the quarter ended September 30, 2019, compared to $6.0 million, or $0.52 per basic share, for the quarter ended June 30, 2019 and $5.1 million, or $0.43 per basic share, for the quarter ended September 30, 2018. In addition to increased net income, earnings per basic share during the third quarter of 2019 compared to the same period in 2018 were impacted by our repurchase of 486,462 shares of common stock between October 1, 2018 and September 30, 2019. Return on average assets and average equity for the third quarter of 2019 were 1.28% and 11.73%, respectively, compared to 1.05% and 9.97%, respectively, for the second quarter of 2019 and 0.91% and 8.39%, respectively, for the third quarter of 2018.
"We had a strong third quarter and are very satisfied with the financial results. We continue to focus on our strategic initiatives to improve net interest margin and efficiencies, which are apparent in the third quarter earnings results and the 10 and 20 basis point increases in net margin from the second quarter of 2019 and same quarter in 2018, respectively. Loan growth has slowed in recent quarters, however we believe this is prudent to maintain strong asset quality as we continue to move further into this long economic cycle. Companywide, we emphasize building banking relationships that are meaningful to our overall balance sheet and good for our customers and communities. We will continue to execute on our stock repurchase plan when we see our stock valuation as attractive and representing a good long-term value for our stakeholders," commented Ty Abston, the company's Chairman and Chief Executive Officer.
The company’s increase in net earnings in the third quarter of 2019, as compared to the third quarter of 2018, was primarily attributable to an increase in net interest income, before the provision for loan losses, of $1.9 million and an increase in noninterest income of $1.1 million. This was partially offset by an increase in noninterest expense of $408,000 and income tax provision of $474,000. These factors impacting net earnings are discussed in more detail below.