After the close last night, Guaranty Bancshares' (GNTY) 2.0 million share IPO priced at $27, which is at the midpoint of the $26-$28 expected range. In total, the deal generated $54.0 million in gross proceeds. The company primarily plans to use those proceeds to fund its expansion strategy and to repay a portion of its debt. Shares of GNTY are expected to open for trading later this morning on the Nasdaq Global Select Market.
GNTY is a Texas-based bank holding company that provides a range of relationship-driven commercial and consumer banking, as well as trust and wealth management, products and services that are tailored to meet the needs of small- and medium-sized businesses, professionals and individuals. The company currently operates 26 banking locations in 18 Texas communities. As of December 31, 2016, it had total assets of $1.8 billion, total loans of $1.2 billion, total deposits of $1.6 billion and total shareholders’ equity of $110.3 million.
In its IPO prospectus, the company highlighted that during each of the last five years, it achieved no less than a 9.5% compound annual growth rate for each of total assets, total deposits and total loans. Average annualized net charge-offs as a percentage of average loans was 0.12% over the past ten years and was 0.12% in 2016. Additionally, average non-performing assets as a percentage of total assets was 0.64% over the past ten years and was 0.36% in 2016.
In 2016, the company reported net interest income of $53.84 million, compared to $47.76 million in 2015 and $39.12 million in 2014. EPS was $1.35 in 2016 vs. $1.15 in 2015, and $1.25 in 2014. Book value increased from $14.01 in 2014 to $16.22 at the end of 2016.
Here is a look at some of its key performance ratios.
- Return on average assets: 0.68% (2016), 0.65% (2015), 0.76% (2014).
- Return on average equity: 8.34% (2016), 7.44% (2015), 8.69% (2014).
- Net interest margin: 3.27% (2016), 3.33% (2015), 3.33% (2014).
- Efficiency ratio: 69.46% (2016), 71.99% (2015), 69.53% (2014).
- Net charge-offs to average loans outstanding: 0.12% (2016), 0.06% (2015), 0.09% (2014).
The company anticipates paying a quarterly dividend in an amount equal to approximately 25-30% of its net income for the immediately preceding quarter.