Guaranty Bancshares, Inc. Reports Fourth Quarter and Year-End 2018 Financial Results

- NASDAQ Companies
  0

ADDISON, Texas, Jan. 22, 2019 (GLOBE NEWSWIRE) — Guaranty Bancshares, Inc. (NASDAQ: GNTY), the holding company for Guaranty Bank & Trust, N.A., today reported financial results for the fiscal quarter and year ended December 31, 2018.  The company’s net income available to common shareholders was $6.5 million, or $0.55 per basic share, for the quarter ended December 31, 2018, compared to $5.1 million, or $0.43 per basic share, for the quarter ended September 30, 2018 and $2.8 million, or $0.25 per basic share, for the quarter ended December 31, 2017.  The earnings per basic share during the fourth quarter of 2018, compared to the same period in 2017, were impacted by the issuance of 899,816 shares of common stock in connection with the completion of the Westbound Bank (“Westbound”) acquisition on June 1, 2018, by our repurchase of 143,276 shares of common stock in the second half of 2018 and by a $1.7 million one-time, non-cash charge to income tax provision in the fourth quarter of 2017 due to the enactment of the Tax Cuts and Jobs Act on December 22, 2017 that changed the company’s federal income tax rate from 35% to 21%.  Return on average assets and average equity for the fourth quarter were 1.15% and 10.67%, respectively, compared to 0.91% and 8.39%, respectively for the third quarter of 2018 and 0.58% and 5.36%, respectively, for the same period during 2017.

The company’s growth in net earnings in the fourth quarter of 2018, as compared to the fourth quarter of 2017, was primarily attributable to an increase in net interest income, before the provision for loan losses, of $3.4 million, a gain on the sale of our Atlanta, Texas bank location of $830,000 and a decrease in the income tax provision of $2.1 million.  These items were partially offset by an increase in noninterest expense of $2.3 million, of which $1.5 million related to higher employee compensation and benefits expense during the quarter and a loss on the sale of a former bank building in Longview, Texas of $229,000.  The increase in employee compensation and benefits resulted from an increase of 57 full-time equivalent employees, from 397 as of December 31, 2017 to 454 as of December 31, 2018, of which 28 new employees were related to the Westbound acquisition, 11 were from our two de novo locations in Austin and Fort Worth, Texas that were opened in the fourth quarter of 2017, and other employees that were added to support operational growth and our SBA department.

Net interest income for the fourth quarter of 2018 and 2017 was $18.9 million and $15.5 million, respectively, an increase of $3.4 million, or 21.7%.  Net interest margin for the fourth quarter of 2018 and 2017 was 3.58% and 3.39% respectively.  Net interest income and net interest margin, on a taxable equivalent basis, were $18.9 million and 3.62%, respectively, for the fourth quarter of 2018.

The provision for loan losses was $500,000 in the fourth quarter of 2018, compared to $500,000 in the third quarter of 2018 and $600,000 in the fourth quarter of 2017.  The provision for loan losses is primarily reflective of organic growth during the respective periods.  Nonperforming assets as a percentage of total loans have improved and were 0.46% at December 31, 2018, compared to 0.69% at September 30, 2018, and 0.64% at December 31, 2017.

Noninterest income increased $624,000, or 17.6%, in the fourth quarter of 2018 to $4.2 million, compared to $3.5 million for the quarter ended September 30, 2018. Merchant and debit card income increased 7.3% to $1.0 million, compared to $937,000 in the prior quarter due to continued growth in net new accounts and debit card usage.  Other noninterest income increased $765,000, or 227.7% from the prior quarter to $1.1 million, which included the net gain of $601,000 on the sales of our Atlanta, Texas bank location and former Longview, Texas bank location in the fourth quarter.  These items were partially offset by decreases in the net realized gain on sale of loans of $200,000, or 31.4%.  Noninterest income increased $394,000, or 10.4%, in the fourth quarter of 2018, compared to $3.8 million for the quarter ended December 31, 2017.  Merchant and debit card income increased $187,000, or 22.9%, compared to the same quarter last year due to continued growth in net new accounts and debit card usage. Other noninterest income increased $383,000, or 53.3% from the same quarter in 2017.  These increases were partially offset by decreases in gain on sale of mortgage loans of $54,000, or 11.0%, from $491,000 in the fourth quarter of 2017 to $437,000 for the fourth quarter of 2018.

Noninterest expense decreased 3.2% in the fourth quarter of 2018 to $14.5 million, compared to $15.0 million for the quarter ended September 30, 2018. The decrease results primarily from a $417,000, or 44.0%, decline in legal and professional fees in the third quarter, which were mainly associated with the Westbound acquisition.  These decreases were partially offset by a $243,000, or 3.0%, increase in employee compensation and benefits expense, from $8.2 million in the third quarter to $8.4 million in the fourth quarter of 2018.  Noninterest expense increased $2.3 million, or 18.6%, in the fourth quarter of 2018, compared to the fourth quarter of 2017.  The increase in noninterest expense in the fourth quarter of 2018 was primarily driven by a $1.5 million increase in employee compensation and benefit expenses when compared to the same quarter a year ago, and a $474,000 increase in occupancy expenses.  The increase in salary and occupancy expenses were significantly impacted as a result of the Westbound acquisition and by our two de novo locations in Austin and Fort Worth, Texas.  The company’s efficiency ratio in the fourth quarter of 2018 was 63.16%, compared to 64.13% in the same quarter last year.

Consolidated assets for the company totaled $2.27 billion at December 31, 2018, compared to $2.24 billion at September 30, 2018, and $1.96 billion at December 31, 2017.  Gross loans increased 0.46%, or $7.7 million, to $1.66 billion at December 31, 2018, compared to loans of $1.65 billion at September 30, 2018.  Gross loans increased 22.1%, or $300.0 million, from $1.36 billion at December 31, 2017.  Excluding the $154.7 million of loans acquired from Westbound, and the $10.2 million in loans sold with the Atlanta bank location, organic loan growth from December 31, 2017 to December 31, 2018 was $155.5 million, or 11.4%.  Deposits increased by 1.86%, or $34.1 million, to $1.87 billion at December 31, 2018, compared to $1.84 billion at September 30, 2018.  Total deposits increased 11.6%, or $195.2 million, from $1.68 billion at December 31, 2017.  Excluding the $181.4 million of deposits acquired from Westbound, and the $32.4 million in deposits sold with the Atlanta bank location, organic deposit growth from December 31, 2017 to December 31, 2018 was $46.2 million, or 2.7%.  Shareholders’ equity totaled $244.6 million as of December 31, 2018, compared to $242.0 million at September 30, 2018 and $207.3 million at December 31, 2017.  The increases from the previous quarter and from December 31, 2017 were primarily the result of operating earnings and the issuance of common stock related to the Westbound acquisition on June 1, 2018.

The company’s Chairman and Chief Executive Officer, Ty Abston, said, “We are pleased with a solid year of earnings and asset growth as we executed well on our Company’s strategic objectives.  Our plans for the coming year are to continue this positive trend and momentum as we further build our franchise in the four regions of the state that we’ve established.  We look forward to the 2019 opportunities and growth prospects that lie ahead.”

Guaranty Bancshares, Inc.
Consolidated Financial Summary (Unaudited)
(In thousands, except share and per share data)
  As of
  2018   2017
  December 31   September 30   June 30   March 31   December 31
ASSETS                  
Cash and due from banks $ 44,471     $ 38,483     $ 37,944     $ 33,021     $ 40,482  
Federal funds sold 20,275     10,700     56,850     43,875     26,175  
Interest-bearing deposits 6,764     4,868     4,186     9,715     24,771  
Total cash and cash equivalents 71,510     54,051     98,980     86,611     91,428  
Securities available for sale 232,975     232,378     243,490     235,075     232,372  
Securities held to maturity 163,164     164,839     167,239     170,408     174,684  
Loans held for sale 1,795     826     1,731     1,477     1,896  
Loans, net 1,645,444     1,638,149     1,580,441     1,388,913     1,347,779  
Accrued interest receivable 9,292     7,760     8,667     6,719     8,174  
Premises and equipment, net 52,227     52,660     53,396     45,095     43,818  
Other real estate owned 751     1,783     1,926     2,076     2,244  
Cash surrender value of life insurance 26,301     25,747     25,590     19,468     19,117  
Deferred tax asset 3,409     3,237     2,902     3,354     2,543  
Core deposit intangible, net 4,706     4,919     5,133     2,578     2,724  
Goodwill 32,160     32,160     32,019     18,742     18,742  
Other assets 23,236     24,071     23,126     17,369     17,103  
Total assets $ 2,266,970     $ 2,242,580     $ 2,244,640     $ 1,997,885     $ 1,962,624  
                   
LIABILITIES AND SHAREHOLDERS’ EQUITY                  
Noninterest-bearing deposits $ 489,789     $ 479,405     $ 464,236     $ 421,255     $ 410,009  
Interest-bearing deposits 1,381,691     1,357,934     1,384,189     1,270,327     1,266,311  
Total deposits 1,871,480     1,837,339     1,848,425     1,691,582     1,676,320  
Securities sold under agreements to repurchase 12,228     11,107     12,588     12,395     12,879  
Accrued interest and other liabilities 10,733     10,187     9,515     7,575     7,117  
Federal Home Loan Bank advances 115,136     129,140     120,644     65,149     45,153  
Subordinated debentures 12,810     12,810     13,810     13,810     13,810  
Total liabilities 2,022,387     2,000,583     2,004,982     1,790,511     1,755,279  
                   
Total shareholders’ equity 244,583     241,997     239,658     207,374     207,345  
Total liabilities and shareholders’ equity $ 2,266,970     $ 2,242,580     $ 2,244,640     $ 1,997,885     $ 1,962,624  

                   
  Quarter Ended
  2018   2017
  December 31   September 30   June 30   March 31   December 31
INCOME STATEMENTS                  
Interest income $ 24,719     $ 23,675     $ 21,026     $ 19,038     $ 18,689  
Interest expense 5,863     5,446     4,567     3,666     3,201  
Net interest income 18,856     18,229     16,459     15,372     15,488  
Provision for loan losses 500     500     650     600     600  
Net interest income after provision for loan losses 18,356     17,729     15,809     14,772     14,888  
Noninterest income 4,173     3,549     3,916     3,665     3,779  
Noninterest expense 14,544     15,027     14,069     13,134     12,265  
Income before income taxes 7,985     6,251     5,656     5,303     6,402  
Income tax provision 1,473     1,160     1,022     944     3,594  
Net earnings $ 6,512     $ 5,091     $ 4,634     $ 4,359     $ 2,808  
                   
PER COMMON SHARE DATA                  
Earnings per common share, basic $ 0.55     $ 0.43     $ 0.41     $ 0.39     $ 0.25  
Earnings per common share, diluted 0.55     0.42     0.41     0.39     0.25  
Cash dividends per common share 0.17     0.15     0.14     0.14     0.14  
Book value per common share – end of quarter 20.68     20.23     20.04     18.75     18.75  
Tangible book value per common share – end of
quarter(1)		 17.56     17.13     16.81     16.82     16.81  
Common shares outstanding – end of quarter 11,829,868     11,964,472     11,960,772     11,058,956     11,058,956  
Weighted-average common shares outstanding,
basic		 11,888,817     11,962,654     11,327,363     11,058,956     11,058,956  
Weighted-average common shares outstanding,
diluted		 11,951,271     12,033,434     11,440,103     11,177,579     11,162,329  
                   
PERFORMANCE RATIOS                  
Return on average assets (annualized) 1.15 %   0.91 %   0.90 %   0.89 %   0.58 %
Return on average equity (annualized) 10.67     8.39     8.58     8.35     5.36  
Net interest margin (annualized) 3.58     3.50     3.44     3.41     3.39  
Efficiency ratio(2) 63.16     69.00     68.88     68.99     64.13  
               
  Twelve months ended            
  December 31,            
  2018   2017            
INCOME STATEMENTS                  
Interest income $ 88,458     $ 71,782              
Interest expense 19,542     12,152              
Net interest income 68,916     59,630              
Provision for loan losses 2,250     2,850              
Net interest income after provision for loan losses 66,666     56,780              
Noninterest income 15,303     14,279              
Noninterest expense 56,774     48,382              
Income before income taxes 25,195     22,677              
Income tax provision 4,599     8,238              
Net earnings $ 20,596     $ 14,439              
                   
PER COMMON SHARE DATA                  
Earnings per common share, basic $ 1.78     $ 1.41              
Earnings per common share, diluted 1.77     1.40              
Cash dividends per common share 0.60     0.53              
Book value per common share – end of quarter 20.68     18.75              
Common shares outstanding – end of quarter 11,829,868     11,058,956              
Weighted-average common shares outstanding, basic 11,562,826     10,230,840              
Weighted-average common shares outstanding, diluted 11,653,766     10,313,369              
                   
PERFORMANCE RATIOS                  
Return on average assets 0.97 %   0.76 %            
Return on average equity 9.03     7.78              
Net interest margin 3.49     3.38              
Efficiency ratio(2) 67.37     65.61              

(1) See Reconciliation of non-GAAP Financial Measures table.
(2) 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.

Guaranty Bancshares, Inc.
Selected Financial Data (Unaudited)
(In thousands)
  As of
  2018   2017
  December 31   September 30   June 30   March 31   December 31
LOAN PORTFOLIO COMPOSITION                  
Commercial and industrial $ 261,779     $ 248,758     $ 234,396     $ 206,308     $ 197,508  
Real estate:                  
Construction and development 237,503     229,307     211,745     193,909     196,774  
Commercial real estate 582,519     599,153     570,448     450,076     418,137  
Farmland 67,845     65,209     68,272     63,971     59,023  
1-4 family residential 393,067     392,456     392,940     377,278     374,371  
Multi-family residential 38,386     38,523     39,023     37,992     36,574  
Consumer 54,777     53,947     52,949     48,982     51,267  
Agricultural 23,277     24,184     23,362     22,545     25,596  
Overdrafts 382     326     339     273     294  
Total loans(1)(2) $ 1,659,535     $ 1,651,863     $ 1,593,474     $ 1,401,334     $ 1,359,544  
                   
  Quarter Ended
  2018   2017
  December 31   September 30   June 30   March 31   December 31
ALLOWANCE FOR LOAN LOSSES                  
Balance at beginning of period $ 14,441     $ 13,890     $ 13,375     $ 12,859     $ 12,528  
Loans charged-off (507 )   (94 )   (201 )   (116 )   (979 )
Recoveries 217     145     66     32     710  
Provision for loan losses 500     500     650     600     600  
Balance at end of period $ 14,651     $ 14,441     $ 13,890     $ 13,375     $ 12,859  
                   
Allowance for loan losses / period-end loans 0.88 %   0.87 %   0.87 %   0.95 %   0.95 %
Allowance for loan losses / nonperforming loans 248.7     166.8     162.3     282.4     321.2  
Net charge-offs / average loans (annualized) 0.07     (0.01 )   0.04     0.02     0.08  
                   
NON-PERFORMING ASSETS                  
Non-accrual loans (3) $ 5,891     $ 8,657     $ 8,557     $ 4,737     $ 4,004  
Other real estate owned 751     1,783     1,926     2,076     2,244  
Repossessed assets owned 971     986     1,624     2,107     2,466  
Total non-performing assets $ 7,613     $ 11,426     $ 12,107     $ 8,920     $ 8,714  
                   
Non-performing assets as a percentage of:                  
Total loans(1)(3) 0.46 %   0.69 %   0.76 %   0.64 %   0.64 %
Total assets 0.34     0.51     0.54     0.45     0.44  
                   
Restructured loans-nonaccrual $ 335     $ —     $ —     $ —     $ —  
Restructured loans-accruing 861     727     737     746     657  
                   
  Quarter Ended
  2018   2017
  December 31   September 30   June 30   March 31   December 31
NONINTEREST INCOME                  
Service charges $ 939     $ 921     $ 852     $ 888     $ 945  
Net realized gain on securities transactions —     1     (51 )   —     142  
Net realized gain on sale of loans 437     637     678     556     491  
Fiduciary income 408     402     379     398     408  
Bank-owned life insurance income 152     157     135     126     114  
Merchant and debit card fees 1,005     937     871     829     818  
Loan processing fee income 131     158     155     145     143  
Other noninterest income 1,101     336     897     723     718  
Total noninterest income $ 4,173     $ 3,549     $ 3,916     $ 3,665     $ 3,779  
                   
NONINTEREST EXPENSE                  
Employee compensation and benefits $ 8,399     $ 8,156     $ 7,789     $ 7,778     $ 6,922  
Occupancy expenses 2,322     2,217     2,006     1,853     1,848  
Legal and professional fees 531     948     1,033     568     589  
Software and technology 653     636     657     556     556  
Amortization 347     349     275     257     252  
Director and committee fees 227     255     268     279     304  
Advertising and promotions 416     335     380     279     314  
ATM and debit card expense 270     289     259     309     133  
Telecommunication expense 173     170     154     152     114  
FDIC insurance assessment fees 146     164     159     156     144  
Other noninterest expense 1,060     1,508     1,089     947     1,089  
Total noninterest expense $ 14,544     $ 15,027     $ 14,069     $ 13,134     $ 12,265  

(1) Excludes outstanding balances of loans held for sale of $1.8 million, $826,000, $1.7 million, $1.5 million, and $1.9 million as of December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018 and December 31, 2017, respectively.
(2) Excludes deferred loan fees of $560,000, $727,000, $857,000, $1.0 million, and $1.1 million as of December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018 and December 31, 2017, respectively.
(3) Restructured loans-nonaccrual are included in nonaccrual loans which are a component of nonperforming loans.

 
Guaranty Bancshares, Inc.
Selected Financial Data (Unaudited)
(In thousands)
 
  For the Three Months Ended December 31,
  2018   2017
  Average
Outstanding
Balance		   Interest
Earned/
Interest
Paid		   Average
Yield/ Rate		   Average
Outstanding
Balance		   Interest
Earned/
Interest
Paid		   Average
Yield/ Rate
ASSETS                      
Interest-earnings assets:                      
Total loans(1) $ 1,645,952     $ 21,793     5.25 %   $ 1,324,401     $ 15,899     4.76 %
Securities available for sale 234,367     1,527     2.58     241,458     1,403     2.31  
Securities held to maturity 164,084     1,035     2.50     177,447     1,069     2.39  
Nonmarketable equity securities 11,994     132     4.37     7,495     86     4.55  
Interest-bearing deposits in other banks 35,770     232     2.57     63,997     232     1.44  
Total interest-earning assets 2,092,167     24,719     4.69     1,814,798     18,689     4.09  
Allowance for loan losses (14,525 )           (12,743 )        
Noninterest-earnings assets 185,179             145,069          
Total assets $ 2,262,821             $ 1,947,124          
LIABILITIES AND SHAREHOLDERS’ EQUITY                      
Interest-bearing liabilities:                      
Interest-bearing deposits $ 1,379,641     $ 4,993     1.44 %   $ 1,233,932     $ 2,843     0.91 %
Advances from FHLB and fed funds purchased 112,551     684     2.41     59,938     178     1.18  
Subordinated debentures 12,821     171     5.29     13,810     165     4.74  
Securities sold under agreements to repurchase 14,002     15     0.43     14,402     15     0.41  
Total interest-bearing liabilities 1,519,015     5,863     1.53     1,322,082     3,201     0.96  
Noninterest-bearing liabilities:                      
Noninterest-bearing deposits 487,180             408,959          
Accrued interest and other liabilities 12,534             6,638          
Total noninterest-bearing liabilities 499,714             415,597          
Shareholders’ equity 244,092             209,445          
Total liabilities and shareholders’ equity $ 2,262,821             $ 1,947,124          
Net interest rate spread(2)         3.16 %           3.13 %
Net interest income     $ 18,856             $ 15,488      
Net interest margin(3)         3.58 %           3.39 %

(1) Includes average outstanding balances of loans held for sale of $1.2 million and $1.6 million for the three months ended December 31, 2018 and 2017, 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.

  For the Twelve Months Ended December 31,
  2018   2017
  Average
Outstanding
Balance		   Interest
Earned/
Interest
Paid		   Average
Yield/Rate		   Average
Outstanding
Balance		   Interest
Earned/
Interest
Paid		   Average
Yield/ Rate
ASSETS                      
Interest-earnings assets:                      
Total loans(1) $ 1,524,792     $ 77,170     5.06 %   $ 1,283,253     $ 61,014     4.75 %
Securities available for sale 236,799     5,927     2.50     223,095     5,081     2.28  
Securities held to maturity 167,919     4,160     2.48     182,549     4,409     2.42  
Nonmarketable equity securities 9,625     432     4.49     7,134     465     6.52  
Interest-bearing deposits in other banks 35,521     769     2.16     70,692     813     1.15  
Total interest-earning assets 1,974,656     88,458     4.48     1,766,723     71,782     4.06  
Allowance for loan losses (13,825 )           (12,217 )        
Noninterest-earnings assets 167,734             144,971          
Total assets $ 2,128,565             $ 1,899,477          
LIABILITIES AND SHAREHOLDERS’ EQUITY                      
Interest-bearing liabilities:                      
Interest-bearing deposits $ 1,324,744     $ 16,941     1.28 %   $ 1,241,115     $ 10,604     0.85 %
Advances from FHLB and fed funds purchased 94,338     1,865     1.98     46,268     472     1.02  
Other debt —     —     —     6,711     301     4.49  
Subordinated debentures 13,309     687     5.16     15,902     724     4.55  
Securities sold under agreements to repurchase 12,796     49     0.38     13,306     51     0.38  
Total interest-bearing liabilities 1,445,187     19,542     1.35     1,323,302     12,152     0.92  
Noninterest-bearing liabilities:                      
Noninterest-bearing deposits 446,560             384,049          
Accrued interest and other liabilities 8,754             6,648          
Total noninterest-bearing liabilities 455,314             390,697          
Shareholders’ equity 228,064             185,478          
Total liabilities and shareholders’ equity $ 2,128,565             $ 1,899,477          
Net interest rate spread(2)         3.13 %           3.14 %
Net interest income     $ 68,916             $ 59,630      
Net interest margin(3)         3.49 %           3.38 %

(1) Includes an average outstanding balance of loans held for sale of $1.7 million for the years ended December 2018 and 2017.
(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.

Guaranty Bancshares, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In thousands, except share and per share data)
  As of
  2018   2017
  December 31   September 30   June 30   March 31   December 31
Total shareholders’ equity $ 244,583     $ 241,997     $ 239,658     $ 207,374     $ 207,345  
Adjustments:                  
Goodwill (32,160 )   (32,160 )   (32,019 )   (18,742 )   (18,742 )
Core deposit intangible (4,706 )   (4,919 )   (5,133 )   (2,578 )   (2,724 )
Total tangible common equity $ 207,717     $ 204,918     $ 202,506     $ 186,054     $ 185,879  
Common shares outstanding – end of quarter(1) 11,829,868     11,964,472     11,960,772     11,058,956     11,058,956  
Book value per common share $ 20.68     $ 20.23     $ 20.04     $ 18.75     $ 18.75  
Tangible book value per common share 17.56     17.13     16.93     16.82     16.81  

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

About Non-GAAP Financial Measures

Certain of the financial measures and ratios we present, including “tangible book value per share” 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.

About Guaranty Bancshares, Inc.

Guaranty Bancshares, Inc. is a bank holding company that conducts commercial banking activities through its wholly-owned subsidiary, Guaranty Bank & Trust, N.A.  As one of the oldest regional community banks in Texas, Guaranty Bank & Trust provides its customers with a full array of relationship-driven commercial and consumer banking products and services, as well as mortgage, trust, and wealth management products and services. Guaranty Bank & Trust has 30 banking locations across 23 Texas communities located within the East Texas, Dallas/Fort Worth, Greater Houston and Central Texas regions of the state.  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, other risks and uncertainties listed from time to time in our reports and documents filed with the Securities and Exchange Commission (“SEC”), and the following factors: business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic market areas; economic, market, operational, liquidity, credit and interest rate risks associated with our business; the composition of our loan portfolio, including deteriorating asset quality and higher loan charge-offs; the laws and regulations applicable to our business; our ability to achieve organic loan and deposit growth and the composition of such growth; increased competition in the financial services industry, nationally, regionally or locally; our ability to maintain our historical earnings trends; our ability to raise additional capital to execute our business plan; acquisitions and integrations of acquired businesses; systems failures or interruptions involving our information technology and telecommunications systems or third-party servicers; the composition of our management team and our ability to attract and retain key personnel; the fiscal position of the U.S. federal government and the soundness of other financial institutions; and the amount of nonperforming and classified assets we hold. 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.

Contact:

Cappy Payne
Senior Executive Vice President and Chief Financial Officer
(888) 572-9881
[email protected]		  

Source: Guaranty Bancshares, Inc.