Guaranty Bancshares, Inc. (NYSE:GNTY) Q3 2023 Earnings Conference Call October 16, 2023 11:00 AM ET

Company Participants

Ty Abston - Chairman and Chief Executive Officer

Cappy Payne - Senior Executive Vice President and Chief Financial Officer

Shalene Jacobson - Executive Vice President and Chief Financial Officer

Conference Call Participants

Tim Mitchell - Raymond James

Graham Dick - Piper Sandler

Brady Gailey - KBW

Matt Olney - Stephens, Inc.

Operator

Good morning and welcome to Guaranty Bancshares Third Quarter 2023 Earnings Call. My name is Nona Branch, and I will be your operator for today's call. I’d like to remind everyone this call is being recorded. After our prepared remarks, we will have a Q&A session.

Our host today for today's call will be Ty Abston, Chairman and Chief Executive Officer of the company; Cappy Payne, Senior Executive Vice President, and Chief Financial Officer of the company; Shalene Jacobson, Executive Vice President, and Chief Financial Officer of the bank.

To begin our call, I will now turn it over to our CEO Ty Abston.

Ty Abston

Thank you, Nona. Good morning, everyone, and again, welcome to our third quarter earnings call. We did issue a press release this morning that , kind of, went over our quarter and a lot of detail. We do have a presentation that Cappy and Shalene are going to go through to give a little more color on the quarter and kind of our operations and then we'll open it up to Q&A afterwards. Cappy?

Cappy Payne

All right, thank you, Ty. We'll take a quick look at the balance sheet, then the income statement here as I talk through the details. Looking at the balance sheet, total assets ended the quarter at $3.2 billion, that remained pretty consistent from the linked quarter. We did show a small increase or an increase for the quarter in total assets of $24 million.

For the year 2023, assets are down about $120 million, that's 3.7%. That decrease mainly is reflected in our bond portfolio, it’s down $110 million since the beginning of the year. We had some short-term treasuries that we bought about $65 million that matured and about $25 million in called or matured munis during the year.

So, looking at loans, which obviously is a bigger bulk of our assets, they were $2.3 billion at the end of Q3, they did decrease for the quarter about $16 million and year-to-date they're down about $60 million. We address that in the earnings release, I don't know what our thought is in that regard just in broad terms, in that we've tightened our credit underwriting as most banks have, and of course with higher rates, loan demand has softened some. The bulk of that $60 million year-to-date decrease I mentioned is in the construction and development bucket, just FYI.