Back to top

Image: Shutterstock

Guaranty Bancshares (GNTY) Announces New Share Buyback Plan

Read MoreHide Full Article

Guaranty Bancshares, Inc. (GNTY - Free Report) has announced a new share repurchase program. Under the plan, the board of directors has authorized the buyback of 1.25 million shares. The plan will remain in place till Apr 21, 2026, or the repurchase of all the shares authorized.

This new program will replace the earlier 2022 share repurchase authorization once it expires on Apr 21, 2024. Under the older plan, GNTY was authorized to buy back 1 million shares. Last year, the company repurchased 0.43 million shares. As of Dec 31, 2023, almost 0.37 million shares remained available under the program.

Additionally, last week, Guaranty Bancshares announced a quarterly cash dividend of 24 cents per share, representing a hike of 4.3% from the prior payout. The dividend will be paid out on Apr 10 to shareholders on record as of Mar 25.

Prior to this, GNTY increased its quarterly dividend by 4.5% to 23 cents per share. Over the past five years, the company raised its dividend seven times, with annualized dividend growth of 9.8%. At present, the company's payout ratio is 36% of earnings.

Based on the last day’s closing price of $29.51, Guaranty Bancshares’ dividend yield currently stands at 3.25%. This is impressive compared with the industry’s 0.28%.

Guaranty Bancshares has a decent liquidity position. As of Dec 31, 2023, total cash and cash equivalents were $89.5 million. The company’s total debt balance was $190.3 million. Given the earnings strength and solid balance sheet position, its capital distributions are likely to be sustainable going forward.

Over the years, GNTY has grown primarily through the existing markets and “the entry into new markets with de novo banking locations.” Also, the company has expanded operations through strategic acquisitions, which has helped it gain entry into markets with robust loan demand and maintain stable operating efficiencies.

Over the past six months, shares of GNTY have rallied 6.8% compared with the industry’s rise of 7.2%.
 

Zacks Investment Research
Image Source: Zacks Investment Research

Currently, Guaranty Bancshares carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Other Banks That Announced New Share Buyback Plans

Earlier this month, Finwise Bancorp (FINW - Free Report) announced a new share repurchase program. Per the plan, the company is authorized to buy back up to 641,832 shares, which is roughly 5% of its total outstanding shares, as of Mar 6, 2024. The program is set to expire on Mar 31, 2026.

Kent Landvatter, CEO of FINW, said, “Our differentiated business model and strong liquidity position allow us to return capital to shareholders via share buybacks while continuing to invest to become an integrated Fintech banking solutions provider.”

Last month, South Plains Financial, Inc. (SPFI - Free Report) announced a new share repurchase program. The plan authorizes the company to buy back shares worth $10 million. This plan is set to expire on Feb 21, 2025.

Prior to this, SPFI had announced a share repurchase plan in 2023 worth $15 million. The plan was completely exhausted by fourth-quarter 2023-end as it repurchased a total of 686,000 shares in the prior year.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Guaranty Bancshares Inc. (GNTY) - free report >>

South Plains Financial, Inc. (SPFI) - free report >>

FinWise Bancorp (FINW) - free report >>

Published in