Guaranty Bancshares, Inc. GNTY sparks excitement in the market with its new share repurchase program. As per the latest plan, the company is all set to buy back an impressive 1.25 million shares, a move that has investors buzzing with anticipation. The buyback window extends until Apr 21, 2026, or until all the authorized shares are successfully repurchased. This groundbreaking initiative supersedes the 2022 share repurchase authorization, which expires on Apr 21, 2024. Under the previous plan, GNTY had the green light to repurchase 1 million shares. In the previous year, the company managed to buy back 0.43 million shares, leaving approximately 0.37 million shares untouched as of Dec 31, 2023.
In a further show of strength, Guaranty Bancshares recently declared a quarterly cash dividend of 24 cents per share, marking a 4.3% increase from the preceding payout. Shareholders can expect to receive the dividend on Apr 10, with a record date of Mar 25. Notably, this increment follows a previous dividend rise by 4.5% to 23 cents per share. What’s more, the company has hiked its dividend a remarkable seven times over the last five years, with a steady annualized growth rate of 9.8%. The current payout ratio, pegged at 36% of earnings, indicates a stable and sustainable dividend policy.
Based on the closing price of $29.51, the dividend yield for Guaranty Bancshares stands at an impressive 3.25%, far outshining the industry average of 0.28%. The company boasts a healthy liquidity standing, with total cash and equivalents amounting to $89.5 million as of Dec 31, 2023. In contrast, the total debt balance is noted at $190.3 million. This robust balance sheet, combined with strong earnings, positions the company favorably for sustainable capital distributions going forward.
Over its journey, GNTY has embraced growth through multiple avenues including existing markets and new market entries via de novo banking locations. Strategic acquisitions have further bolstered its operations, enabling the company to tap into markets with high loan demand while maintaining operational efficiency. This well-rounded approach has been key to the company’s success.
Although shares of GNTY have rallied 6.8% over the past six months, showing promise, the company remains focused on long-term growth strategies to drive value for its shareholders.
Other Banking Giants Joining the Trend
Joining the financial market trend, Finwise Bancorp FINW recently unveiled a share repurchase program. The program allows for the repurchase of up to 641,832 shares, equating to approximately 5% of the total shares outstanding as of Mar 6, 2024. The initiative is slated to run until Mar 31, 2026. In an enthusiastic statement, Kent Landvatter, CEO of FINW, emphasized the company’s unique business model and robust liquidity position, which enables capital returns to shareholders alongside investments aimed at enhancing its position as an integrated Fintech banking solutions provider.
In a similar move, South Plains Financial, Inc. SPFI announced a fresh share repurchase plan, allowing for the buyback of shares worth $10 million. The plan is expected to conclude on Feb 21, 2025. Prior to this, SPFI had successfully completed a $15 million repurchase program in 2023, exhausting the allocated funds by the end of the fourth quarter. The company’s proactive buyback strategy signals confidence and financial stability.
