Guaranty Bancshares' Q2 net income rises on higher margins

Overview

• Guaranty Bancshares fiscal Q2 net income rises to $10.0 mln, driven by higher NIM

• Net interest income for fiscal Q2 up 15.8% yr/yr due to lower deposit costs

• Noninterest income boosted by lawsuit settlement, asset quality remains strong

Result Drivers

• NET INTEREST MARGIN - Improvement in net interest margin from 3.26% to 3.71% driven by decreased deposit costs and upward repricing of loans and securities

• NONINTEREST INCOME - Increase in noninterest income due to $1.0 mln restitution payment from lawsuit settlement

• ASSET QUALITY - Strong asset quality with nonperforming assets at 0.33% of total assets, per CEO Ty Abston

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Guaranty Bancshares Inc is $52.00, about 12.5% above its July 18 closing price of $45.52

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw9QRk70a