Guaranty Bancshares, Inc. (NYSE:GNTY) Q2 2024 Earnings Call Transcript July 15, 2024 11:00 AM ET
Company Participants
Ty Abston - Chairman and CEO
Shalene Jacobson - EVP and CFO
Conference Call Participants
Matt Olney - Stephens
Michael Rose - Raymond James
Woody Lay - KBW
Operator
Good morning. Welcome to the Guaranty Bancshares Second Quarter 2024 Earnings Call. My name is Nona Branch and I will be your operator for today's call. I want 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 and welcome to our second quarter earnings call. Before I turn it over to Shalene and go through the investor deck, I wanted to make a few comments. First, I wanted to say how I'm proud of our team and the results we've produced not only for this quarter but for the full year. Our team continues to do a great job of serving our customers and maintain strong relationships in all of our markets and to continue to look for opportunities to build our franchise. The Texas economy remains resilient, and I really see 2025 as the year that we're going to start seeing additional growth and continued growth in our markets. Our strategy has been and continues to be to maintain a well-positioned bank for an uptick in economic growth. This requires us to maintain strong asset quality, strong capital position, good liquidity, and really to have lending capacity in all of our key sectors which we currently have and plan to maintain. So we are positioned for growth in the coming quarters.
With these comments, after this, I'll turn it over to Shalene. She's going to go through our investor deck and then we'll open it up to Q&A. Shalene?
Shalene Jacobson
Great. Thanks, Ty. I'll kick it off with the balance sheet first. As Ty mentioned, we're continuing with our strategy to shrink the balance sheet. We believe there's still some economic and political uncertainties out there right now that require heightened risk management around loan growth. But hopefully, those will start to improve in ‘25, as he mentioned. However, because of our strong core earnings stream and our customer base, our net income remains good, and we're on target to keep earning similar to what they were in 2023. Our total assets decreased $45.8 million during the quarter, while total liabilities decreased about $48.5 million. Those decreases are primarily from loans, which were down gross about $50.3 million and also on the liability side from a $30 million decrease in Federal Home Loan Bank advances that we repaid during the quarter and some lower customer repurchase account balances.