Guaranty Bancshares, Inc. Reports Second Quarter 2024 Financial Results

Guaranty Bancshares, Inc. (NYSE: GNTY) (the "Company"), the parent company of Guaranty Bank & Trust, N.A. (the "Bank"), today reported financial results for the fiscal quarter ended June 30, 2024. The Company's net income available to common shareholders was $7.4 million, or $0.65 per basic share, for the quarter ended June 30, 2024, compared to $6.7 million, or $0.58 per basic share, for the quarter ended March 31, 2024 and $9.6 million, or $0.82 per basic share, for the quarter ended June 30, 2023. Return on average assets and average equity for the second quarter of 2024 were 0.95% and 9.91%, respectively, compared to 0.85% and 8.93%, respectively, for the first quarter of 2024 and 1.17% and 12.87%, respectively, for the second quarter of 2023. The increase in earnings during the second quarter of 2024 compared to the first quarter of 2024 was primarily due to the $1.2 million reversal of the provision for credit losses during the second quarter. The decrease in earnings in the second quarter of 2024 compared to the second quarter of 2023 was primarily due to a decrease in noninterest income in the current quarter compared to the prior year quarter.

"Second quarter 2024 results were good and consistent with our expectations. Net interest margin continued to improve from 3.16% in the first quarter to 3.26% in the second quarter. Deposit balances have remained stable as we've strategically shrunk the balance sheet and repaid an additional $30.0 million in FHLB advances during the quarter, as well as purchased some higher-yielding investment securities. Credit quality overall remains manageable with low past-due and charge-off percentages. That, along with lower loan balances, resulted in a $1.2 million reverse provision for credit losses during the quarter. However, we are closely monitoring and working with a handful of one-off borrowers that are experiencing financial difficulties and have adjusted their risk ratings and loss reserve amounts accordingly. We believe our balance sheet is strong and positioned to go on the offensive as the economy improves and the Bank continues to provide consistent earnings results for our shareholders," said Ty Abston, the Company's Chairman and Chief Executive Officer.

QUARTERLY HIGHLIGHTS

• Growing Earnings and Improving NIM. Net interest margin, on a fully taxable equivalent basis, continued to improve in the second quarter, increasing to 3.26%, compared to 3.16% in the first quarter and 3.19% in the prior year quarter. Earnings also improved compared to the prior quarter, due to the improved net interest margin, reverse credit loss provisions, and lower employee and compensation expenses. The net interest improvements resulted primarily from a slow-down in deposit cost increases, while earning assets have continued to reprice upward.
• Good Asset Quality. We have experienced some risk rating downgrades as we work with certain borrowers that are experiencing cash flow and other challenges. However, we believe overall credit quality remains strong and the expected losses on deteriorating credits are low primarily due to the Bank's equity position and/or strong guarantor support. Nonperforming assets as a percentage of total assets were 0.71% at June 30, 2024, compared to 0.68% at March 31, 2024 and 0.11% at June 30, 2023. Net charge-offs (annualized) to average loans were 0.01% for the quarter ended June 30, 2024, compared to 0.02% for the quarter ended March 31, 2024, and 0.03% for the quarter ended June 30, 2023. There was a reverse provision to the allowance for credit losses of $1.2 million during the second quarter, in addition to the $250,000 reverse provision in the first quarter. Changes to historical and qualitative factors have been minimal during the first half of 2024, therefore the decrease in the allowance for credit losses is due primarily to the decreases in outstanding loan balances of $107.6 million, or 4.6%, since January 1, 2024, which were partially offset by an increase in special mention and substandard loans during the same period as we continue to work with some stressed borrowers. Nonperforming assets consist of both nonaccrual loans and other real estate owned (ORE). Nonaccrual loans represent 0.28% of total outstanding loan balances as of June 30, 2024 and consist primarily of smaller dollar consumer and small business loans. In the first quarter, we foreclosed on a multi-purpose commercial real estate loan in a vibrant location in the South Austin area and recorded other real estate owned of $14.9 million. As the property was prepared for sale and marketing in the second quarter, management applied a more conservative capitalization rate to estimate current value and applied a $900,000 valuation allowance during the quarter, which is included in other noninterest income on the income statement and explains the quarter-over-quarter decrease in that balance. During the second quarter, we also foreclosed on a single-family residential property with a fair value of $1.2 million. At this time, we do not expect additional valuation allowances or losses on the ORE. Commercial real estate (CRE) loans, particularly office related loans, have received increased scrutiny in recent months. As of June 30, 2024, our CRE loans and real estate C&D loans represent 40.6% and 10.4% of the total loan portfolio, respectively, and office-related loans represent 5.5% of the total loan portfolio with an average balance of $551,000.
• Granular and Consistent Core Deposit Base. As of June 30, 2024, we have 89,370 total deposit accounts with an average account balance of $29,385. We have a historically reliable core deposit base, with strong and trusted banking relationships. Total deposits decreased slightly by $1.7 million during the second quarter. DDA balances decreased $11.1 million, savings and MMDA balances decreased $21.9 million while time deposits increased $31.3 million. Excluding public funds and Bank-owned accounts, our uninsured deposits as of June 30, 2024 were 25.7% of total deposits. Interest rates paid on deposits during the quarter stabilized with minimal increases. Despite the decrease in DDA during the quarter, noninterest-bearing deposits still represent 31.2% of total deposits. Our cost of interest-bearing deposits increased seven basis points during the quarter from 3.25% in the prior quarter to 3.32%. This increase was primarily due to renewals of maturing certificates of deposit into new CDs paying higher rates and the shift from noninterest-bearing balances to interest-bearing. Our cost of total deposits for the second quarter of 2024 increased five basis points from 2.23% in the prior quarter to 2.28%†.
• Healthy Capital and Liquidity. Our capital and liquidity ratios, as well as contingent liquidity sources, remain very healthy. During the second quarter of 2024, we repurchased 138,427 shares of our common stock, or 1.21% of our average shares outstanding during the period, at an average price of $29.56 per share. Our liquidity ratio, calculated as cash and cash equivalents and unpledged investments divided by total liabilities, was 13.6% as of June 30, 2024, compared to 12.9% as of June 30, 2023. Our total available contingent liquidity, net of current outstanding borrowings, was $1.3 billion, consisting of FHLB, FRB and correspondent bank fed funds and revolving lines of credit. Finally, our total equity to average quarterly assets as of June 30, 2024 was 9.9%. If we had to recognize our entire net unrealized losses on both AFS and HTM securities, our total equity to average assets ratio would be 9.1%†, which we believe represents a strong capital level under regulatory requirements.

† Non-GAAP financial metric. Calculations of this metric and reconciliations to GAAP are included in the schedules accompanying this release.

RESULTS OF OPERATIONS

Net interest income, before the provision for credit losses, in the second quarter of 2024 and 2023 was $23.9 million and $24.7 million, respectively, a decrease of $823,000, or 3.3%. The decrease in net interest income resulted from an increase in interest expense of $2.8 million, or 20.0%, compared to the prior year quarter, which was partially offset by an increase in interest income of $2.0 million, or 5.1%, from the same quarter in the prior year. The increases in both interest income and expense resulted primarily from higher rates during the period. Interest expense was also somewhat impacted by a shift from noninterest-bearing to interest-bearing deposit accounts, which resulted in increased expense in the second quarter of 2024 compared to the prior year quarter. Our noninterest-bearing deposits to total deposits were 31.2% and 35.2% as of June 30, 2024 and 2023, respectively.

Net interest margin, on a fully taxable equivalent basis, for the second quarter of 2024 and 2023 was 3.26% and 3.19%, respectively. Net interest margin, on a fully taxable equivalent basis, increased seven basis points primarily due to increases in interest earned on loans and available for sale securities during the period. The cost of interest-bearing liabilities increased 61 basis points from the prior year quarter, while interest-earning asset yields increased 57 basis points. The increase in the cost of interest-bearing liabilities was due primarily to an increase in the cost of interest-bearing deposits from 2.41% to 3.32%, a change of 91 basis points, in the second quarter of 2024 compared to the same period in 2023. The increases in cost were partially offset by increases in yield on the loan portfolio from 5.70% to 6.29%, or 59 basis points, as well as 97 and 14 basis point increases in yield on AFS and HTM securities, respectively. Although the cost of interest-bearing liabilities have repriced more quickly during this period, the weighted average yield on $73.5 million in new loans originated in the second quarter was 8.26%.

Net interest income, before the provision for credit losses, increased $293,000, or 1.2%, from $23.6 million in the first quarter of 2024 to $23.9 million in the second quarter of 2024. The increase in net interest income resulted primarily from an decrease in interest expense of $332,000, or 1.9%, compared to a decrease in interest income of only $39,000, or 0.1%.

Net interest margin, on a fully taxable equivalent basis, increased from 3.16% for the first quarter of 2024 to 3.26% for the second quarter of 2024, an increase of 10 basis points. The increase in net interest margin, on a fully taxable equivalent basis, was primarily due to an increase in loan yields from 6.21% for the first quarter of 2024 to 6.29% for the second quarter of 2024, a change of eight basis points, and a decrease in total interest-earning assets during the second quarter of 2024. This increase was partially offset by an increase in the cost of interest-bearing deposits from 3.25% in the first quarter of 2024 to 3.32% in the second quarter of 2024, a change of seven basis points.

We recorded a reverse provision for credit losses of $1.2 million and $250,000 during the second and first quarters of 2024, respectively. Our gross loan balances decreased by $50.3 million during the second quarter and by $107.6 million during the first half of 2024, while overall credit quality trends and economic forecast assumptions remained relatively stable. As of June 30, 2024 and December 31, 2023, our allowance for credit losses as a percentage of total loans was 1.32% and 1.33%, respectively.

Noninterest income decreased $3.3 million, or 41.6%, in the second quarter of 2024 to $4.6 million, compared to $7.9 million for the second quarter of 2023. The decrease from the same quarter in 2023 was primarily due to a one-time gain on the sale of nonmarketable correspondent bank stock of $2.8 million in the prior year quarter and a $900,000 ORE valuation allowance during the second quarter of 2024 (described further in the Quarterly Highlights above).

Noninterest expense increased $131,000, or 0.6%, in the second quarter of 2024 to $20.6 million, compared to $20.5 million for the second quarter of 2023. The increase in noninterest expense in the second quarter of 2024 was driven primarily by an increase in other noninterest expense of $393,000, or 32.5%, due to $222,000 in ORE expenses during the current quarter, as well as a $123,000 increase in losses sustained due to fraudulent check activity during the current quarter. Additionally, the Bank saw an increase in software and technology expense of $122,000, or 8.0%. These were partially offset by a $216,000, or 1.8%, decrease in employee compensation and benefits and a $144,000, or 14.6%, decrease in legal and professional fees compared to the second quarter of 2023.

Noninterest income in the second quarter of 2024 decreased by $659,000, or 12.5%, from $5.3 million in the first quarter of 2024. The decrease was primarily due to a decrease in other noninterest income of $1.1 million, or 94.3%, primarily the result of a $900,000 ORE valuation allowance during the second quarter of 2024. Additionally, there was $499,000 in prior write-down recoveries on receivables related to SBA loans during the first quarter of 2024 that were not present in the second quarter of 2024.

Noninterest expense decreased $90,000, or 0.4%, in the second quarter of 2024, from $20.7 million for the quarter ended March 31, 2024. The decrease resulted primarily from a $714,000, or 5.7%, decrease in employee compensation and benefits. There was a $287,000 higher expense in the first quarter related to our executive compensation program, which is primarily funded by the Company during the first quarter of each year. Payroll tax-related expense decreased by $192,000 from the first quarter to the second quarter due to bonus-related taxes paid during the first quarter. Bonus expense was decreased in the second quarter compared to the first quarter by $125,000 as production-related incentives are expected to be lower than originally accrued for. These decreases were partially offset by a $177,000, or 6.4%, increase in occupancy expenses, a $176,000, or 28.9%, increase in ATM and debit card expense and a $164,000, or 11.4%, increase in other noninterest expense during the second quarter of 2024 compared to the first quarter of 2024.

The Company’s efficiency ratio in the second quarter of 2024 was 72.34%, compared to 62.84% in the prior year quarter and 71.74% in the first quarter of 2024.

FINANCIAL CONDITION

Consolidated assets for the Company totaled $3.08 billion at June 30, 2024, compared to $3.13 billion at March 31, 2024 and $3.21 billion at June 30, 2023.

Gross loans decreased by $50.3 million, or 2.2%, during the quarter resulting in a gross loan balance of $2.21 billion at June 30, 2024, compared to $2.27 billion at March 31, 2024. Our decline in loans resulted primarily from tighter underwriting due to the current economic environment and from lower demand from potential borrowers.

Gross loans decreased $118.9 million, or 5.1%, from $2.33 billion at June 30, 2023. The decrease in gross loans during the second quarter of 2024 compared to the second quarter of 2023 resulted from tightened credit underwriting standards and loan terms, along with fewer borrower requests in response to higher interest rates and project costs.

Total deposits decreased by $1.7 million, or 0.1%, to $2.63 billion at June 30, 2024, compared to $2.63 billion at March 31, 2024, and increased $23.3 million, or 0.9%, from $2.60 billion at June 30, 2023. The decrease in deposits during the second quarter of 2024 compared to the first quarter of 2024 was the result of a decrease in noninterest-bearing deposits of $8.4 million, offset by an increase in interest-bearing deposits of $6.7 million. The increase in deposits during the current quarter compared to the prior year quarter resulted primarily from an increase in interest-bearing deposits of $118.4 million, partially offset by a decrease in noninterest-bearing deposits of $95.0 million.

Nonperforming assets as a percentage of total loans were 0.98% at June 30, 2024, compared to 0.94% at March 31, 2024 and 0.15% at June 30, 2023. Nonperforming assets as a percentage of total assets were 0.71% at June 30, 2024, compared to 0.68% at March 31, 2024, and 0.11% at June 30, 2023. The Bank's nonperforming assets consist primarily of other real estate owned and nonaccrual loans. The increase in nonperforming assets compared to the prior year quarter was primarily due to the increase in other real estate owned, which is described in the Quarterly Highlights above.

Total equity was $308.6 million at June 30, 2024, compared to $305.9 million at March 31, 2024 and $297.4 million at June 30, 2023. The increase in total equity compared to the prior quarter and prior year quarter resulted primarily from net income of $7.4 million during the second quarter and a positive shift in our net unrealized losses on securities compared to the prior periods. These increases were somewhat offset by the payment of dividends of $2.7 million during the second quarter of 2024, and a higher volume of stock share repurchases of $4.1 million during the second quarter of 2024 compared to prior quarters.

 

 

As of

 

 

 

2024

 

 

2023

 

(dollars in thousands)

 

June 30

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

45,016

 

 

$

43,872

 

 

$

47,744

 

 

$

47,922

 

 

$

47,663

 

Federal funds sold

 

 

40,475

 

 

 

24,300

 

 

 

36,575

 

 

 

73,275

 

 

 

44,950

 

Interest-bearing deposits

 

 

4,721

 

 

 

4,921

 

 

 

5,205

 

 

 

8,980

 

 

 

4,738

 

Total cash and cash equivalents

 

 

90,212

 

 

 

73,093

 

 

 

89,524

 

 

 

130,177

 

 

 

97,351

 

Securities available for sale

 

 

242,662

 

 

 

228,787

 

 

 

196,195

 

 

 

178,644

 

 

 

166,596

 

Securities held to maturity

 

 

347,992

 

 

 

363,963

 

 

 

404,208

 

 

 

408,308

 

 

 

437,292

 

Loans held for sale

 

 

871

 

 

 

874

 

 

 

976

 

 

 

2,506

 

 

 

795

 

Loans, net

 

 

2,185,247

 

 

 

2,234,012

 

 

 

2,290,881

 

 

 

2,286,163

 

 

 

2,300,882

 

Accrued interest receivable

 

 

12,397

 

 

 

11,747

 

 

 

13,143

 

 

 

11,307

 

 

 

11,110

 

Premises and equipment, net

 

 

57,475

 

 

 

56,921

 

 

 

57,018

 

 

 

56,712

 

 

 

56,151

 

Other real estate owned

 

 

15,184

 

 

 

14,900

 

 

 

—

 

 

 

—

 

 

 

—

 

Cash surrender value of life insurance

 

 

42,369

 

 

 

42,119

 

 

 

42,348

 

 

 

42,096

 

 

 

41,830

 

Core deposit intangible, net

 

 

1,206

 

 

 

1,312

 

 

 

1,418

 

 

 

1,524

 

 

 

1,633

 

Goodwill

 

 

32,160

 

 

 

32,160

 

 

 

32,160

 

 

 

32,160

 

 

 

32,160

 

Other assets

 

 

53,842

 

 

 

67,550

 

 

 

56,920

 

 

 

80,816

 

 

 

60,396

 

Total assets

 

$

3,081,617

 

 

$

3,127,438

 

 

$

3,184,791

 

 

$

3,230,413

 

 

$

3,206,196

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

820,430

 

 

$

828,861

 

 

$

852,957

 

 

$

903,391

 

 

$

915,462

 

Interest-bearing

 

 

1,805,732

 

 

 

1,798,983

 

 

 

1,780,289

 

 

 

1,754,902

 

 

 

1,687,355

 

Total deposits

 

 

2,626,162

 

 

 

2,627,844

 

 

 

2,633,246

 

 

 

2,658,293

 

 

 

2,602,817

 

Securities sold under agreements to repurchase

 

 

25,173

 

 

 

39,058

 

 

 

25,172

 

 

 

19,366

 

 

 

20,532

 

Accrued interest and other liabilities

 

 

32,860

 

 

 

33,807

 

 

 

32,242

 

 

 

31,218

 

 

 

30,701

 

Line of credit

 

 

—

 

 

 

—

 

 

 

4,500

 

 

 

2,000

 

 

 

12,000

 

Federal Home Loan Bank advances

 

 

45,000

 

 

 

75,000

 

 

 

140,000

 

 

 

175,000

 

 

 

195,000

 

Subordinated debentures

 

 

43,852

 

 

 

45,819

 

 

 

45,785

 

 

 

47,752

 

 

 

47,719

 

Total liabilities

 

 

2,773,047

 

 

 

2,821,528

 

 

 

2,880,945

 

 

 

2,933,629

 

 

 

2,908,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity attributable to Guaranty Bancshares, Inc.

 

 

308,043

 

 

 

305,371

 

 

 

303,300

 

 

 

296,226

 

 

 

296,862

 

Noncontrolling interest

 

 

527

 

 

 

539

 

 

 

546

 

 

 

558

 

 

 

565

 

Total equity

 

 

308,570

 

 

 

305,910

 

 

 

303,846

 

 

 

296,784

 

 

 

297,427

 

Total liabilities and equity

 

$

3,081,617

 

 

$

3,127,438

 

 

$

3,184,791

 

 

$

3,230,413

 

 

$

3,206,196

 

 

 

Quarter Ended

 

 

 

2024

 

 

2023

 

(dollars in thousands, except per share data)

 

June 30

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

STATEMENTS OF EARNINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

40,713

 

 

$

40,752

 

 

$

40,796

 

 

$

39,818

 

 

$

38,734

 

Interest expense

 

 

16,833

 

 

 

17,165

 

 

 

16,983

 

 

 

16,516

 

 

 

14,031

 

Net interest income

 

 

23,880

 

 

 

23,587

 

 

 

23,813

 

 

 

23,302

 

 

 

24,703

 

Reversal of provision for credit losses

 

 

(1,200

)

 

 

(250

)

 

 

—

 

 

 

—

 

 

 

—

 

Net interest income after provision for credit losses

 

 

25,080

 

 

 

23,837

 

 

 

23,813

 

 

 

23,302

 

 

 

24,703

 

Noninterest income

 

 

4,599

 

 

 

5,258

 

 

 

4,796

 

 

 

4,939

 

 

 

7,873

 

Noninterest expense

 

 

20,602

 

 

 

20,692

 

 

 

21,402

 

 

 

20,514

 

 

 

20,471

 

Income before income taxes

 

 

9,077

 

 

 

8,403

 

 

 

7,207

 

 

 

7,727

 

 

 

12,105

 

Income tax provision

 

 

1,654

 

 

 

1,722

 

 

 

1,341

 

 

 

1,437

 

 

 

2,529

 

Net earnings

 

$

7,423

 

 

$

6,681

 

 

$

5,866

 

 

$

6,290

 

 

$

9,576

 

Net loss attributable to noncontrolling interest

 

 

12

 

 

 

7

 

 

 

12

 

 

 

7

 

 

 

5

 

Net earnings attributable to Guaranty Bancshares, Inc.

 

$

7,435

 

 

$

6,688

 

 

$

5,878

 

 

$

6,297

 

 

$

9,581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, basic

 

$

0.65

 

 

$

0.58

 

 

$

0.51

 

 

$

0.54

 

 

$

0.82

 

Earnings per common share, diluted

 

 

0.65

 

 

 

0.58

 

 

 

0.51

 

 

 

0.54

 

 

 

0.81

 

Cash dividends per common share

 

 

0.24

 

 

 

0.24

 

 

 

0.23

 

 

 

0.23

 

 

 

0.23

 

Book value per common share - end of quarter

 

 

26.98

 

 

 

26.47

 

 

 

26.28

 

 

 

25.64

 

 

 

25.58

 

Tangible book value per common share - end of quarter(1)

 

 

24.06

 

 

 

23.57

 

 

 

23.37

 

 

 

22.72

 

 

 

22.67

 

Common shares outstanding - end of quarter(2)

 

 

11,417,270

 

 

 

11,534,960

 

 

 

11,540,644

 

 

 

11,554,094

 

 

 

11,603,167

 

Weighted-average common shares outstanding, basic

 

 

11,483,091

 

 

 

11,539,167

 

 

 

11,536,878

 

 

 

11,568,897

 

 

 

11,735,475

 

Weighted-average common shares outstanding, diluted

 

 

11,525,504

 

 

 

11,598,239

 

 

 

11,589,165

 

 

 

11,619,342

 

 

 

11,756,512

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

 

0.95

%

 

 

0.85

%

 

 

0.73

%

 

 

0.78

%

 

 

1.17

%

Return on average equity (annualized)

 

 

9.91

 

 

 

8.93

 

 

 

7.93

 

 

 

8.43

 

 

 

12.87

 

Net interest margin, fully taxable equivalent (annualized)(3)

 

 

3.26

 

 

 

3.16

 

 

 

3.11

 

 

 

3.02

 

 

 

3.19

 

Efficiency ratio(4)

 

 

72.34

 

 

 

71.74

 

 

 

74.81

 

 

 

72.64

 

 

 

62.84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) See Non-GAAP Reconciling Tables.

 

(2) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options.

 

(3) Net interest margin on a fully taxable equivalent basis is equal to net interest income adjusted for nontaxable income divided by average interest-earning assets, annualized, using a marginal tax rate of 21%.

 

(4) The efficiency ratio was calculated by dividing total noninterest expense by net interest income plus noninterest income, excluding securities gains or losses. Taxes are not part of this calculation.

 

 

 

As of

 

 

 

2024

 

 

2023

 

(dollars in thousands)

 

June 30

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

LOAN PORTFOLIO COMPOSITION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

264,058

 

 

$

269,560

 

 

$

287,565

 

 

$

292,410

 

 

$

295,864

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and development

 

 

231,053

 

 

 

273,300

 

 

 

296,639

 

 

 

317,484

 

 

 

345,127

 

Commercial real estate

 

 

899,120

 

 

 

906,684

 

 

 

923,195

 

 

 

901,321

 

 

 

891,883

 

Farmland

 

 

180,126

 

 

 

180,502

 

 

 

186,295

 

 

 

188,614

 

 

 

187,105

 

1-4 family residential

 

 

526,650

 

 

 

523,573

 

 

 

514,603

 

 

 

504,002

 

 

 

496,340

 

Multi-family residential

 

 

47,507

 

 

 

44,569

 

 

 

44,292

 

 

 

42,720

 

 

 

44,385

 

Consumer

 

 

53,642

 

 

 

54,375

 

 

 

57,059

 

 

 

58,294

 

 

 

59,498

 

Agricultural

 

 

12,506

 

 

 

12,418

 

 

 

12,685

 

 

 

13,076

 

 

 

13,447

 

Overdrafts

 

 

335

 

 

 

276

 

 

 

243

 

 

 

328

 

 

 

252

 

Total loans(1)(2)

 

$

2,214,997

 

 

$

2,265,257

 

 

$

2,322,576

 

 

$

2,318,249

 

 

$

2,333,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

2024

 

 

2023

 

(dollars in thousands)

 

June 30

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

ALLOWANCE FOR CREDIT LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

30,560

 

 

$

30,920

 

 

$

31,140

 

 

$

31,759

 

 

$

31,953

 

Loans charged-off

 

 

(115

)

 

 

(310

)

 

 

(242

)

 

 

(644

)

 

 

(224

)

Recoveries

 

 

37

 

 

 

200

 

 

 

22

 

 

 

25

 

 

 

30

 

Reversal of provision for credit loss expense

 

 

(1,200

)

 

 

(250

)

 

 

—

 

 

 

—

 

 

 

—

 

Balance at end of period

 

$

29,282

 

 

$

30,560

 

 

$

30,920

 

 

$

31,140

 

 

$

31,759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses / period-end loans

 

 

1.32

%

 

 

1.35

%

 

 

1.33

%

 

 

1.34

%

 

 

1.36

%

Allowance for credit losses / nonperforming loans

 

 

470.4

 

 

 

496.0

 

 

 

552.9

 

 

 

1,148.2

 

 

 

894.6

 

Net charge-offs / average loans (annualized)

 

 

0.01

 

 

 

0.02

 

 

 

0.04

 

 

 

0.11

 

 

 

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONPERFORMING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

6,225

 

 

$

6,161

 

 

$

5,592

 

 

$

2,712

 

 

$

3,550

 

Other real estate owned

 

 

15,184

 

 

 

14,900

 

 

 

—

 

 

 

—

 

 

 

—

 

Repossessed assets owned

 

 

331

 

 

 

236

 

 

 

234

 

 

 

250

 

 

 

—

 

Total nonperforming assets

 

$

21,740

 

 

$

21,297

 

 

$

5,826

 

 

$

2,962

 

 

$

3,550

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans as a percentage of total loans(1)(2)

 

 

0.28

%

 

 

0.27

%

 

 

0.24

%

 

 

0.12

%

 

 

0.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets as a percentage of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans(1)(2)

 

 

0.98

%

 

 

0.94

%

 

 

0.25

%

 

 

0.13

%

 

 

0.15

%

Total assets

 

 

0.71

 

 

 

0.68

 

 

 

0.18

 

 

 

0.09

 

 

 

0.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes outstanding balances of loans held for sale of $871,000, $874,000, $976,000, $2.5 million, and $795,000 as of June 30 and March 31, 2024 and December 31, September 30, June 30, 2023, respectively.

 

(2) Excludes deferred loan fees of $468,000, $685,000, $775,000, $946,000, and $1.3 million as of June 30 and March 31, 2024 and December 31, September 30, June 30, 2023, respectively.

 

 

 

Quarter Ended

 

 

 

2024

 

 

2023

 

(dollars in thousands)

 

June 30

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges

 

$

1,098

 

 

$

1,069

 

 

$

1,123

 

 

$

1,131

 

 

$

1,056

 

Net realized loss on securities transactions

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(322

)

Net realized gain on sale of loans

 

 

227

 

 

 

272

 

 

 

196

 

 

 

218

 

 

 

473

 

Fiduciary and custodial income

 

 

657

 

 

 

649

 

 

 

624

 

 

 

637

 

 

 

630

 

Bank-owned life insurance income

 

 

250

 

 

 

251

 

 

 

249

 

 

 

267

 

 

 

211

 

Merchant and debit card fees

 

 

2,122

 

 

 

1,706

 

 

 

1,760

 

 

 

1,752

 

 

 

2,121

 

Loan processing fee income

 

 

136

 

 

 

118

 

 

 

116

 

 

 

128

 

 

 

142

 

Mortgage fee income

 

 

43

 

 

 

41

 

 

 

30

 

 

 

46

 

 

 

50

 

Other noninterest income

 

 

66

 

 

 

1,152

 

 

 

698

 

 

 

760

 

 

 

3,512

 

Total noninterest income

 

$

4,599

 

 

$

5,258

 

 

$

4,796

 

 

$

4,939

 

 

$

7,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

$

11,723

 

 

$

12,437

 

 

$

12,715

 

 

$

11,944

 

 

$

11,939

 

Occupancy expenses

 

 

2,924

 

 

 

2,747

 

 

 

2,757

 

 

 

2,960

 

 

 

2,754

 

Legal and professional fees

 

 

841

 

 

 

772

 

 

 

954

 

 

 

902

 

 

 

985

 

Software and technology

 

 

1,653

 

 

 

1,642

 

 

 

1,740

 

 

 

1,490

 

 

 

1,531

 

Amortization

 

 

142

 

 

 

143

 

 

 

145

 

 

 

147

 

 

 

149

 

Director and committee fees

 

 

198

 

 

 

200

 

 

 

186

 

 

 

192

 

 

 

201

 

Advertising and promotions

 

 

208

 

 

 

169

 

 

 

352

 

 

 

288

 

 

 

269

 

ATM and debit card expense

 

 

785

 

 

 

609

 

 

 

763

 

 

 

803

 

 

 

739

 

Telecommunication expense

 

 

159

 

 

 

173

 

 

 

175

 

 

 

178

 

 

 

171

 

FDIC insurance assessment fees

 

 

365

 

 

 

360

 

 

 

321

 

 

 

363

 

 

 

522

 

Other noninterest expense

 

 

1,604

 

 

 

1,440

 

 

 

1,294

 

 

 

1,247

 

 

 

1,211

 

Total noninterest expense

 

$

20,602

 

 

$

20,692

 

 

$

21,402

 

 

$

20,514

 

 

$

20,471

 

 

 

Quarter Ended June 30,

 

 

 

2024

 

 

2023

 

(dollars in thousands)

 

Average Outstanding Balance

 

 

Interest Earned/ Interest Paid

 

 

Average Yield/ Rate

 

 

Average Outstanding Balance

 

 

Interest Earned/ Interest Paid

 

 

Average Yield/ Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans(1)

 

$

2,237,469

 

 

$

35,009

 

 

 

6.29

%

 

$

2,363,158

 

 

$

33,591

 

 

 

5.70

%

Securities available for sale

 

 

245,309

 

 

 

2,267

 

 

 

3.72

 

 

 

175,447

 

 

 

1,205

 

 

 

2.75

 

Securities held to maturity

 

 

356,922

 

 

 

2,332

 

 

 

2.63

 

 

 

455,626

 

 

 

2,831

 

 

 

2.49

 

Nonmarketable equity securities

 

 

23,243

 

 

 

280

 

 

 

4.85

 

 

 

28,931

 

 

 

301

 

 

 

4.17

 

Interest-bearing deposits in other banks

 

 

58,341

 

 

 

825

 

 

 

5.69

 

 

 

62,165

 

 

 

806

 

 

 

5.20

 

Total interest-earning assets

 

 

2,921,284

 

 

 

40,713

 

 

 

5.61

 

 

 

3,085,327

 

 

 

38,734

 

 

 

5.04

 

Allowance for credit losses

 

 

(30,407

)

 

 

 

 

 

 

 

 

(31,909

)

 

 

 

 

 

 

Noninterest-earning assets

 

 

240,707

 

 

 

 

 

 

 

 

 

219,532

 

 

 

 

 

 

 

Total assets

 

$

3,131,584

 

 

 

 

 

 

 

 

$

3,272,950

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

1,795,958

 

 

$

14,824

 

 

 

3.32

%

 

$

1,653,237

 

 

$

9,946

 

 

 

2.41

%

Advances from FHLB and fed funds purchased

 

 

90,055

 

 

 

1,207

 

 

 

5.39

 

 

 

262,088

 

 

 

3,349

 

 

 

5.13

 

Line of credit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,352

 

 

 

64

 

 

 

3.49

 

Subordinated debt

 

 

44,489

 

 

 

511

 

 

 

4.62

 

 

 

48,192

 

 

 

535

 

 

 

4.45

 

Securities sold under agreements to repurchase

 

 

44,059

 

 

 

291

 

 

 

2.66

 

 

 

24,823

 

 

 

137

 

 

 

2.21

 

Total interest-bearing liabilities

 

 

1,974,561

 

 

 

16,833

 

 

 

3.43

 

 

 

1,995,692

 

 

 

14,031

 

 

 

2.82

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

818,290

 

 

 

 

 

 

 

 

 

948,083

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

 

36,931

 

 

 

 

 

 

 

 

 

30,480

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

855,221

 

 

 

 

 

 

 

 

 

978,563

 

 

 

 

 

 

 

Equity

 

 

301,802

 

 

 

 

 

 

 

 

 

298,695

 

 

 

 

 

 

 

Total liabilities and equity

 

$

3,131,584

 

 

 

 

 

 

 

 

$

3,272,950

 

 

 

 

 

 

 

Net interest rate spread(2)

 

 

 

 

 

 

 

 

2.18

%

 

 

 

 

 

 

 

 

2.22

%

Net interest income

 

 

 

 

$

23,880

 

 

 

 

 

 

 

 

$

24,703

 

 

 

 

Net interest margin(3)

 

 

 

 

 

 

 

 

3.29

%

 

 

 

 

 

 

 

 

3.21

%

Net interest margin, fully taxable equivalent(4)

 

 

 

 

 

 

 

 

3.26

%

 

 

 

 

 

 

 

 

3.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes average outstanding balances of loans held for sale of $817,000 and $1.4 million for the quarter ended June 30, 2024 and 2023, respectively.

 

(2) Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

 

(3) Net interest margin is equal to net interest income divided by average interest-earning assets, annualized.

 

(4) Net interest margin on a fully taxable equivalent basis is equal to net interest income adjusted for nontaxable income divided by average interest-earning assets, annualized, using a marginal tax rate of 21%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

(dollars in thousands)

 

Average Outstanding Balance

 

 

Interest Earned/ Interest Paid

 

 

Average Yield/ Rate

 

 

Average Outstanding Balance

 

 

Interest Earned/ Interest Paid

 

 

Average Yield/ Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans(1)

 

$

2,268,323

 

 

$

70,500

 

 

 

6.25

%

 

$

2,375,533

 

 

$

65,748

 

 

 

5.58

%

Securities available for sale

 

 

230,803

 

 

 

4,118

 

 

 

3.59

 

 

 

179,984

 

 

 

2,273

 

 

 

2.55

 

Securities held to maturity

 

 

375,158

 

 

 

4,865

 

 

 

2.61

 

 

 

479,063

 

 

 

5,881

 

 

 

2.48

 

Nonmarketable equity securities

 

 

23,840

 

 

 

528

 

 

 

4.45

 

 

 

28,658

 

 

 

720

 

 

 

5.07

 

Interest-bearing deposits in other banks

 

 

52,007

 

 

 

1,454

 

 

 

5.62

 

 

 

48,650

 

 

 

1,256

 

 

 

5.21

 

Total interest-earning assets

 

 

2,950,131

 

 

 

81,465

 

 

 

5.55

 

 

 

3,111,888

 

 

 

75,878

 

 

 

4.92

 

Allowance for credit losses

 

 

(30,643

)

 

 

 

 

 

 

 

 

(31,922

)

 

 

 

 

 

 

Noninterest-earning assets

 

 

235,769

 

 

 

 

 

 

 

 

 

218,868

 

 

 

 

 

 

 

Total assets

 

$

3,155,257

 

 

 

 

 

 

 

 

$

3,298,834

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

1,792,538

 

 

$

29,283

 

 

 

3.29

%

 

$

1,639,003

 

 

$

17,601

 

 

 

2.17

%

Advances from FHLB and fed funds purchased

 

 

115,824

 

 

 

3,127

 

 

 

5.43

 

 

 

285,963

 

 

 

7,123

 

 

 

5.02

 

Line of credit

 

 

420

 

 

 

18

 

 

 

8.62

 

 

 

3,696

 

 

 

64

 

 

 

3.49

 

Subordinated debt

 

 

45,143

 

 

 

1,028

 

 

 

4.58

 

 

 

48,675

 

 

 

1,075

 

 

 

4.45

 

Securities sold under agreements to repurchase

 

 

42,665

 

 

 

542

 

 

 

2.55

 

 

 

17,937

 

 

 

150

 

 

 

1.69

 

Total interest-bearing liabilities

 

 

1,996,590

 

 

 

33,998

 

 

 

3.42

 

 

 

1,995,274

 

 

 

26,013

 

 

 

2.63

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

820,964

 

 

 

 

 

 

 

 

 

977,738

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

 

36,201

 

 

 

 

 

 

 

 

 

28,706

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

857,165

 

 

 

 

 

 

 

 

 

1,006,444

 

 

 

 

 

 

 

Equity

 

 

301,502

 

 

 

 

 

 

 

 

 

297,116

 

 

 

 

 

 

 

Total liabilities and equity

 

$

3,155,257

 

 

 

 

 

 

 

 

$

3,298,834

 

 

 

 

 

 

 

Net interest rate spread(2)

 

 

 

 

 

 

 

 

2.13

%

 

 

 

 

 

 

 

 

2.29

%

Net interest income

 

 

 

 

$

47,467

 

 

 

 

 

 

 

 

$

49,865

 

 

 

 

Net interest margin(3)

 

 

 

 

 

 

 

 

3.24

%

 

 

 

 

 

 

 

 

3.23

%

Net interest margin, fully taxable equivalent(4)

 

 

 

 

 

 

 

 

3.21

%

 

 

 

 

 

 

 

 

3.22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes average outstanding balances of loans held for sale of $761,000 and $1.5 million for the six months ended June 30, 2024 and 2023, respectively.

 

(2) Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

 

(3) Net interest margin is equal to net interest income divided by average interest-earning assets, annualized.

 

(4) Net interest margin on a fully taxable equivalent basis is equal to net interest income adjusted for nontaxable income divided by average interest-earning assets, annualized, using a marginal tax rate of 21%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-GAAP RECONCILING TABLES

Tangible Book Value per Common Share

 

 

As of

 

 

 

2024

 

 

2023

 

(dollars in thousands, except per share data)

 

June 30

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

Equity attributable to Guaranty Bancshares, Inc.

 

$

308,043

 

 

$

305,371

 

 

$

303,300

 

 

$

296,226

 

 

$

296,862

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(32,160

)

 

 

(32,160

)

 

 

(32,160

)

 

 

(32,160

)

 

 

(32,160

)

Core deposit intangible, net

 

 

(1,206

)

 

 

(1,312

)

 

 

(1,418

)

 

 

(1,524

)

 

 

(1,633

)

Total tangible common equity attributable to Guaranty Bancshares, Inc.

 

$

274,677

 

 

$

271,899

 

 

$

269,722

 

 

$

262,542

 

 

$

263,069

 

Common shares outstanding(1)

 

 

11,417,270

 

 

 

11,534,960

 

 

 

11,540,644

 

 

 

11,554,094

 

 

 

11,603,167

 

Book value per common share

 

$

26.98

 

 

$

26.47

 

 

$

26.28

 

 

$

25.64

 

 

$

25.58

 

Tangible book value per common share(1)

 

 

24.06

 

 

 

23.57

 

 

 

23.37

 

 

 

22.72

 

 

 

22.67

 

(1) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options.

Net Unrealized Loss on Securities, Tax Effected, as a Percentage of Total Equity

(dollars in thousands)

 

June 30, 2024

 

Total equity(1)

 

$

308,570

 

Less: net unrealized loss on HTM securities, tax effected

 

 

(25,019

)

Total equity, including net unrealized loss on AFS and HTM securities

 

$

283,551

 

 

 

 

 

Net unrealized loss on AFS securities, tax effected

 

 

15,110

 

Net unrealized loss on HTM securities, tax effected

 

 

25,019

 

Net unrealized loss on AFS and HTM securities, tax effected

 

$

40,129

 

 

 

 

 

Net unrealized loss on securities as % of total equity(1)

 

 

13.0

%

Total equity before impact of unrealized losses

 

$

323,680

 

Net unrealized loss on securities as % of total equity before impact of unrealized losses

 

 

12.4

%

 

 

 

 

Total average assets

 

$

3,131,584

 

Total equity to average assets

 

 

9.9

%

Total equity, adjusted for tax effected net unrealized loss, to average assets

 

 

9.1

%

 

 

 

 

(1) Includes the net unrealized loss on AFS securities, tax effected, of $15.1 million.

 

 

 

Cost of Total Deposits

 

 

Quarter Ended

 

(dollars in thousands)

 

June 30, 2024

 

 

March 31, 2024

 

 

June 30, 2023

 

Average interest-bearing deposits

 

 

 

 

 

 

 

 

 

Certificates and other time deposits

 

$

736,394

 

 

$

724,248

 

 

$

556,022

 

Other interest-bearing deposits

 

 

1,059,564

 

 

 

1,064,871

 

 

 

1,097,215

 

Total average interest-bearing deposits

 

$

1,795,958

 

 

$

1,789,119

 

 

$

1,653,237

 

Adjustments:

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

818,290

 

 

 

823,638

 

 

 

948,083

 

Total average deposits

 

$

2,614,248

 

 

$

2,612,757

 

 

$

2,601,320

 

 

 

 

 

 

 

 

 

 

 

Deposit-related interest expense

 

 

 

 

 

 

 

 

 

Certificates and other time deposits

 

$

8,215

 

 

$

7,820

 

 

$

4,511

 

Other interest-bearing deposits

 

 

6,609

 

 

 

6,639

 

 

 

5,435

 

Total deposit-related interest expense

 

$

14,824

 

 

$

14,459

 

 

$

9,946

 

 

 

 

 

 

 

 

 

 

 

Average cost of certificates and other time deposits

 

 

4.49

%

 

 

4.34

%

 

 

3.25

%

Average cost of other interest-bearing deposits

 

 

2.51

%

 

 

2.51

%

 

 

1.99

%

Average cost of interest-bearing deposits

 

 

3.32

%

 

 

3.25

%

 

 

2.41

%

Average cost of total deposits

 

 

2.28

 

 

 

2.23

 

 

 

1.53

 

About Non-GAAP Financial Measures

Certain of the financial measures and ratios we present, including “tangible book value per common share”, "net unrealized loss on securities, tax effected, as a percentage of total equity" and "cost of total deposits" are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.

These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.

A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

Conference Call Information

The Company will hold a conference call to discuss second quarter 2024 financial results on Monday, July 15, 2024 at 10:00 am Central Time. The conference call will be hosted by Ty Abston, Chairman and CEO, and Shalene Jacobson, EVP and CFO. All conference attendees must register before the call at www.gnty.com/earningscall. The conference materials will be available by accessing the Investor Relations page on our website, www.gnty.com. A recording of the conference call will be available by 1:00 pm Central Time the day of the call and remain available through July 31, 2024 on our Investor Relations webpage.

About Guaranty Bancshares, Inc.

Guaranty Bancshares, Inc. is the parent company for Guaranty Bank & Trust, N.A. Guaranty Bank & Trust has 33 banking locations across 26 Texas communities located within the East Texas, Dallas/Fort Worth, Houston and Central Texas regions of the state. As of June 30, 2024, Guaranty Bancshares, Inc. had total assets of $3.1 billion, total loans of $2.2 billion and total deposits of $2.6 billion. Visit www.gnty.com for more information.

Cautionary Statement Regarding Forward-Looking Information

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our results of operations, financial condition and financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Such factors include, without limitation, the “Risk Factors” referenced in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, and other risks and uncertainties listed from time to time in our reports and documents filed with the Securities and Exchange Commission. We can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this communication, and we do not intend, and assume no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240715812989/en/

Shalene Jacobson Executive Vice President and Chief Financial Officer Guaranty Bancshares, Inc. [phone] [e-mail]