Guaranty Bancshares, Inc. (NYSE:GNTY) Q1 2024 Earnings Conference Call April 15, 2024 11:00 AM ET

Company Participants

Ty Abston - Chairman & Chief Executive Officer
Shalene Jacobson - Executive Vice President & Chief Financial Officer

Conference Call Participants

Woody Lay - KBW
Matt Olney - Stephens
Michael Rose - Raymond James
Graham Dick - Piper Sandler

Operator

Good morning. Welcome to the Guaranty Bancshares First Quarter 2024 Earnings Call. My name is Nona Branch, and I will be your operator for today's call. I would like to remind everyone that today's call is being recorded. After the prepared remarks, there will be a Q&A session. Our host for today's call will be Ty Abston, Chairman and Chief Executive Officer; Shalene Jacobson, Executive Vice President and Chief Financial Officer.

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

Ty Abston

Thank you, Nona. Good morning, everyone. Welcome to Guaranty Bancshares' first quarter 2024 earnings call.

As you've read in our press release we just issued, we did have a good quarter. I'm very proud not only of the quarter, but our entire team. Our team remains focused on developing strong banking relationships in all of our markets across state of Texas, our asset quality remains strong, our net interest margin continues to build and our local economies appear to be -- continue to remain stable across the board.

We did release quite a bit of detail in our press release. However, we do have a presentation on some highlights that I'm going to turn over to Shalene to go through. And then after that, we'll answer any questions you have. Shalene?

Shalene Jacobson

All right. Thanks, Ty.

I'm going to start off with the balance sheet. Total assets decreased by about $57.4 million and total liabilities decreased $59.4 million during the quarter. We've continued with our strategic decision that began really back in early 2023 to shrink the balance sheet rather than grow at this time because we've got a core earning stream that allows us to really continue to have good profits without taking on the added risk from various economic uncertainties and other headwinds that we believe are still in place today.

The year-over-year decrease in assets during the quarter consisted of lower cash balances of about $16 million, lower securities balances of about $8 million net of some repurchases that I'll talk about here in a second, and a decrease in net loans of $57 million during the quarter. These asset decreases were used on the liability side of the balance sheet to pay down Federal Home Loan Bank advances by $65 million and also to repay $25 million in matured brokered CDs that we obtained back in 2023 to test as a source of liquidity, and we did not renew those when they matured in February.