Guaranty Bancshares, Inc. Reports Fourth Quarter and Year-End 2020 Financial Results

ADDISON, Texas--()--Guaranty Bancshares, Inc. (NASDAQ: GNTY), the parent company of Guaranty Bank & Trust, N.A., today reported financial results for the fiscal quarter and year ended December 31, 2020. The Company's net income available to common shareholders was $9.9 million, or $0.90 per basic share, for the quarter ended December 31, 2020, compared to $10.1 million, or $0.92 per basic share, for the quarter ended September 30, 2020 and $7.4 million, or $0.64 per basic share, for the quarter ended December 31, 2019. Return on average assets and average equity for the fourth quarter of 2020 were 1.48% and 14.53%, respectively, compared to 1.53% and 15.21%, respectively, for the third quarter of 2020 and 1.25% and 11.24%, respectively, for the fourth quarter of 2019. The increase in earnings during the third and fourth quarters of 2020, compared to the fourth quarter of 2019, was largely due to the forgiveness and amortization of Paycheck Protection Program (“PPP”) loans and recognition of associated loan origination fees, as well as increased non-interest income from mortgage and warehouse lending activities and decreases in interest expense relative to interest income. Net core earnings, excluding provisions for loan losses and income taxes and PPP net origination income, as well as our core net interest margin, adjusted to exclude the effects of PPP loans, are described further in tables below.

"Despite the many challenges endured by our customers and employees during 2020, we are pleased with the Company’s operating and financial results for fourth quarter and for the year. Throughout 2020, we worked diligently with our employees to follow strong safety protocols and to provide technology that allows them to work remotely when necessary. We participated in the SBA’s PPP loan program and worked with our customers to provide temporary payment or interest-only deferrals. We closely analyzed our loan portfolio and increased our reserves for credit losses due to the ongoing uncertainty of the impact and timing of possible economic hardships resulting from COVID-19. We gave back to our communities through monetary and volunteer donations to non-profits that support those impacted by the virus. Texas has proven to be a very resilient economy and it is in a strong position to rebound when the vaccines are readily available and the virus begins to subside. As our fourth quarter and year-end results indicate, our Bank continues to provide a solid core earnings foundation, sustainable net interest margin and very strong asset quality, all of which contribute to strong shareholder prospects. We look forward to 2021 and the ability for our communities, employees and customers to return to a more normal and social lifestyle," commented Ty Abston, the Company's Chairman and Chief Executive Officer.

QUARTERLY AND ANNUAL HIGHLIGHTS

  • Strong Net Earnings. Net earnings for the quarter were $9.9 million, down slightly from $10.1 million for the immediately prior quarter and up from $7.4 million for the same quarter of 2019. Net core earnings, which exclude provisions for loan losses and income tax, net PPP income, and interest on PPP-related borrowings, were $9.6 million for the fourth quarter, compared to $11.1 million for the third quarter of 2020, and $8.9 million during the fourth quarter of 2019.

    Net earnings for the year were $27.4 million, up from $26.3 million for the year ended 2019. Net core earnings were $40.3 million for the year ended December 31, 2020, compared to $33.3 million for the same period in 2019.
  • Solid Net Interest Margin. The fully tax-equivalent (“FTE”) net interest margin was 3.85% for the fourth quarter of 2020, compared to 3.61% in the preceding quarter and 3.77% in the fourth quarter of 2019. Net interest income increased $1.7 million, or 7.5%, from $22.3 million in the third quarter of 2020 to $24.0 million in the fourth quarter of 2020. Interest expense decreased $376,000, or 14.0%, from $2.7 million in the third quarter of 2020 to $2.3 million in fourth quarter of 2020. The Bank continues to decrease cost of funds as higher rate CDs mature and to reduce interest rates on non-maturing deposits as market conditions allow. In addition, 63.9% of the loan portfolio, or $1.1 billion, has interest rate floors and 51.7% of those loans are currently at their loan floor. The weighted average interest rate of loans currently at their floor is 4.49%.
  • Steady Credit Quality and Reduced Deferrals. Non-performing assets as a percentage of total loans were 0.70% at December 31, 2020, compared to 0.72% at September 30, 2020 and December 31, 2019. Net charge-offs to average loans (annualized) were 0.03% at December 31, 2020, compared to 0.01% at September 30, 2020, and 0.04% at December 31, 2019. The level of initial COVID-related loan deferrals provided by the Bank during the first and second quarters of 2020 has declined significantly, with information about subsequent deferrals made on those loans described further in the Financial Condition section below.

    The Bank had no provision for loan losses during the quarter, compared to a $300,000 provision reversal in the third quarter of 2020 and no provision in the fourth quarter of 2019. The lack of provision expense and provision reversal during these quarters is indicative of our allowance for credit losses methodology and adoption of the Current Expected Credit Losses (“CECL”) model during 2020. Additionally, in the second quarter of 2020, qualitative factor adjustments were made in our CECL model, primarily derived from changes in national GDP, Texas unemployment rates and national industry-related CRE trends, all of which are impacted by the effects of COVID-19 and resulted in the $12.1 million provision expense during second quarter. Qualitative factor adjustments made in the first half of 2020 remained consistent in the second half of 2020 because our CECL model assumes certain lag time in estimated losses that may occur as a result of the pandemic and due to the continued uncertainty surrounding the virus and timing of economic recovery. As of December 31, 2020, the Bank’s allowance for credit losses to gross loans is 1.80%, or 1.95% excluding PPP loan balances.

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

RESULTS OF OPERATIONS

Large provisions for credit losses in the second quarter of 2020 resulting from effects of COVID-19 and participation in the PPP program have created temporary extraordinary results in the calculation of net earnings and related performance ratios. With the credit outlook still uncertain as a result of COVID-19 and other economic factors, the following table illustrates net earnings and net core earnings results, which are pre-tax, pre-provision and pre-extraordinary PPP income, as well as performance ratios for the prior five quarters:

 

 

 

Quarter Ended

 

 

 

2020

 

 

2019

 

$ in thousands ('000s)

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

Net earnings

 

$

9,915

 

 

$

10,134

 

 

$

1,075

 

 

$

6,278

 

 

$

7,369

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

 

 

 

(300

)

 

 

12,100

 

 

 

1,400

 

 

 

 

Income tax provision (benefit)

 

 

2,290

 

 

 

2,350

 

 

 

(190

)

 

 

1,445

 

 

 

1,573

 

PPP loans, including fees

 

 

(2,654

)

 

 

(1,076

)

 

 

(2,540

)

 

 

 

 

 

 

Net interest expense on PPP-related borrowings

 

 

 

 

 

3

 

 

 

31

 

 

 

 

 

 

 

Net core earnings

 

$

9,551

 

 

$

11,111

 

 

$

10,476

 

 

$

9,123

 

 

$

8,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total average assets

 

$

2,659,725

 

 

$

2,639,335

 

 

$

2,657,609

 

 

$

2,325,618

 

 

$

2,341,766

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PPP loans average balance

 

 

(179,240

)

 

 

(209,506

)

 

 

(163,184

)

 

 

 

 

 

 

Excess fed funds sold due to PPP-related borrowings

 

 

 

 

 

(8,152

)

 

 

(84,066

)

 

 

 

 

 

 

Total average assets, adjusted

 

$

2,480,485

 

 

$

2,421,677

 

 

$

2,410,359

 

 

$

2,325,618

 

 

$

2,341,766

 

Total average equity

 

$

271,397

 

 

$

265,027

 

 

$

258,225

 

 

$

251,159

 

 

$

260,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings to average assets (annualized)

 

 

1.48

%

 

 

1.53

%

 

 

0.16

%

 

 

1.09

%

 

 

1.25

%

Net earnings to average equity (annualized)

 

 

14.53

 

 

 

15.21

 

 

 

1.67

 

 

 

9.94

 

 

 

11.24

 

Net core earnings to average assets, as adjusted (annualized)

 

 

1.53

 

 

 

1.83

 

 

 

1.75

 

 

 

1.58

 

 

 

1.51

 

Net core earnings to average equity (annualized)

 

 

14.00

 

 

 

16.68

 

 

 

16.32

 

 

 

14.61

 

 

 

13.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding, basic

 

 

10,966,504

 

 

 

11,012,060

 

 

 

11,025,924

 

 

 

11,432,391

 

 

 

11,533,849

 

Earnings per common share, basic

 

$

0.90

 

 

$

0.92

 

 

$

0.10

 

 

$

0.55

 

 

$

0.64

 

Net core earnings per common share, basic

 

 

0.87

 

 

 

1.01

 

 

 

0.95

 

 

 

0.80

 

 

 

0.78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

Net interest income, before the provision for loan losses, in the fourth quarter of 2020 and 2019 was $24.0 million and $20.5 million, respectively, an increase of $3.5 million, or 16.9%, resulting primarily from a decrease in deposit-related interest expense of $3.1 million, or 62.4%, compared to the same quarter of the prior year. Net interest income, before the provision for loan losses, in the third and fourth quarters of 2020 was $22.3 million and $24.0 million, respectively; an increase of $1.7 million, or 7.5%, resulting primarily from an increase in loan income of $1.3 million, or 5.8%, during the current quarter.

Net interest margin, on a taxable equivalent basis, for the fourth quarter of 2020 and 2019 was 3.85% and 3.77%, respectively. Loan yield decreased from 5.32% for the fourth quarter of 2019 to 4.93% for the fourth quarter of 2020, a change of 39 basis points, while the cost of interest-bearing deposits decreased from 1.35% to 0.51% during the same period, a change of 84 basis points. The decrease in loan yield was primarily due to the repricing of variable rate loans to lower interest rates during the period. The decrease in average deposit rate was primarily due to continued reductions in interest rates for non-maturing deposits as market conditions have allowed.

Net interest margin, on a taxable equivalent basis, increased from 3.61% in the third quarter of 2020 to 3.85% in the fourth quarter of 2020. Loan yield increased from 4.59% for the third quarter of 2020 to 4.93% for the fourth quarter of 2020, a change of 34 basis points due primarily to the effect of PPP loans during the third and fourth quarters of 2020. Loan yield, excluding the effect PPP loans, decreased seven basis points from the third quarter to the fourth quarter of 2020, due to the continued repricing of variable rate loans to lower interest rates. The cost of interest-bearing deposits decreased from 0.63% to 0.51% during the same period, a change of 12 basis points. These decreases were due primarily to the maturity of higher-rate CDs during the fourth quarter of 2020, as well as continued reductions in interest rates for non-maturing deposits as market conditions have allowed.

The Bank’s continued participation in the PPP program has created temporary extraordinary results in the calculation of net interest margin. To illustrate core net interest margin, the table below excludes PPP loans and their associated fees and costs, as well as the average balance of related FHLB borrowings and fed funds sold, for the three months and year ended December 31, 2020:

 

 

 

For the Three Months Ended
December 31, 2020

 

 

For the Year Ended
December 31, 2020

 

$ in thousands ('000s)

 

Average
Outstanding
Balance

 

 

Interest
Earned/
Interest
Paid

 

 

Average
Yield/ Rate

 

 

Average
Outstanding
Balance

 

 

Interest
Earned/
Interest
Paid

 

 

Average
Yield/ Rate

 

Total interest-earning assets

 

$

2,496,945

 

 

$

26,253

 

 

 

4.18

%

 

$

2,404,779

 

 

$

103,042

 

 

 

4.28

%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PPP loans average balance and net fees(1)

 

 

(179,240

)

 

 

(2,654

)

 

 

5.89

 

 

 

(138,291

)

 

 

(6,270

)

 

 

4.53

 

Excess fed funds sold due to PPP-related borrowings

 

 

 

 

 

 

 

 

 

 

 

(22,951

)

 

 

(23

)

 

 

0.10

 

Total interest-earning assets, net of PPP effects

 

$

2,317,705

 

 

$

23,599

 

 

 

4.05

%

 

$

2,243,537

 

 

$

96,749

 

 

 

4.31

%

Interest expense adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PPP-related FHLB borrowings

 

 

 

 

 

 

 

 

 

 

 

(22,951

)

 

 

(57

)

 

 

0.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

23,952

 

 

 

 

 

 

 

 

 

 

$

89,982

 

 

 

 

 

Net interest margin(2)

 

 

 

 

 

 

 

 

 

 

3.82

%

 

 

 

 

 

 

 

 

 

 

3.74

%

Net interest margin, FTE(3)

 

 

 

 

 

 

 

 

 

 

3.85

 

 

 

 

 

 

 

 

 

 

 

3.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income, net of PPP effects

 

 

 

 

 

 

21,298

 

 

 

 

 

 

 

 

 

 

 

83,746

 

 

 

 

 

Net interest margin, net of PPP effects†(4)

 

 

 

 

 

 

 

 

 

 

3.66

 

 

 

 

 

 

 

 

 

 

 

3.73

 

Net interest margin, FTE, net of PPP effects†(5)

 

 

 

 

 

 

 

 

 

 

3.70

 

 

 

 

 

 

 

 

 

 

 

3.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio(6)

 

 

 

 

 

 

 

 

 

 

59.82

 

 

 

 

 

 

 

 

 

 

 

58.86

 

Efficiency ratio, net of PPP effects†(7)

 

 

 

 

 

 

 

 

 

 

65.55

 

 

 

 

 

 

 

 

 

 

 

63.10

 

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

 

(1) Interest earned consists of interest income of $470,000 and $1.4 million, and net origination fees recognized in earnings of $2.2 million and $4.9 million for the three months and year ended December 31, 2020

 

(2) Net interest margin is equal to net interest income divided by average interest-earning assets, annualized. Taxes are not a part of this calculation.

 

(3) Net interest margin on a 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) Net interest margin is equal to net interest income, net of PPP effects, divided by average interest-earning assets, annualized. Taxes are not a part of this calculation.

 

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

 

(6) 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.

 

(7) The efficiency ratio was calculated by dividing total noninterest expense, net of PPP-related deferred costs, by net interest income, net of PPP effects, plus noninterest income, excluding securities gains or losses. Taxes are not part of this calculation.

 

 

The Bank adopted the CECL standard (Accounting Standards Update 2016-13 or ASC 326) on January 1, 2020. The day one impact of adopting CECL resulted in an allowance increase of $4.5 million, or 28.1%, from December 31, 2019. There was no provision for loan losses during the fourth quarter of 2020 and 2019, compared to provision reversal of $300,000 in the third quarter of 2020. The provision expense recorded during the first half of 2020 resulted largely from additional qualitative factors, primarily derived from changes in national GDP, Texas unemployment rates and national industry related CRE trends, all of which were impacted by the effects of COVID-19. Other provision increases in the first half of 2020 resulted from detailed review of the loan portfolio and from discussions with borrowers about their financial hardships, if any, which led to downgrades of loans in loans and industries affected by the crisis to appropriate risk ratings given the expected impacts of COVID-19. Management believes the provisions made in both the first and second quarter, as a result of risk rating downgrades and qualitative factor adjustments in the CECL model, appropriately capture the current credit risks associated with COVID-19. During the third and fourth quarters of 2020, qualitative factor adjustments remained consistent because our CECL model assumes a lag in estimated losses as a result of economic declines caused by the virus. During the third quarter of 2020, loan balances declined in certain pooled segments that contain higher allowance allocation factors, resulting in a lower calculated allowance for credit losses and a reverse provision of $300,000. Furthermore, a new round of stimulus has been introduced (known as “PPP-2”), which is an indication that the economic effects of the pandemic may be longer lasting than initially predicted. It is possible that the economic effects of the pandemic could continue throughout and even beyond the 2021 year, and the long term economic impacts of COVID-19 and the response of governments and our customers are still unknown.

Noninterest income increased $1.8 million, or 37.5%, in the fourth quarter of 2020, to $6.4 million, compared to $4.7 million for the fourth quarter of 2019. The increase from the same quarter in 2019 was due primarily to an increase in the gain on sale of loans of $1.2 million, or 159.4%, and an increase in merchant and debit card fees of $256,000, or 22.5%, from the same quarter of the prior year. The remaining increase resulted from a $163,000 increase in mortgage and warehouse fee income and a $70,000 increase on gains on sale of assets and ORE. These increases were partially offset by a $154,000, or 15.1%, decrease in service charges during the fourth quarter of 2020, as compared to the same quarter of 2019, due primarily to lower insufficient funds fees as consumers are transitioning to more digital spending methods.

Noninterest income decreased $237,000, or 3.6%, to $6.4 million in the fourth quarter of 2020, compared to $6.7 million for the quarter ended September 30, 2020. This was primarily attributable to a decrease in merchant and debit card fees caused by the receipt of approx. $190,000 from an annual contract incentive payment from the debit card processor in the third quarter that was not present in the fourth quarter 2020, as well as a decrease in the gain on sale of loans of $91,000, or 4.3%, during the fourth quarter. These were partially offset by an increase in service charges of $151,000, or 21.1%.

Noninterest expense increased $1.9 million, or 12.0%, in the fourth quarter of 2020, compared to the fourth quarter of 2019. The increase in noninterest expense in the fourth quarter of 2020 was primarily driven by an increase in employee compensation and benefits expense of $879,000, or 9.4%, to $10.2 million, from the same quarter of the prior year, as well as an increase in legal and professional fees of $357,000, or 58.4%. Additional increases were due to the effects of a $252,000, or 100%, increase in FDIC insurance assessment fees during the fourth quarter of 2020 due to FDIC assessment credits of $534,000 that were received and recognized during the prior year. Software and technology expense also increased $225,000, or 24.9%, as a result of new software and hardware investments to allow employees to securely work from home and to improve online deposit account opening. Occupancy expenses increased $98,000, or 3.9%, from the same quarter of the prior year and there was an increase in ATM and debit card expense of $89,000, or 19.5%, resulting from increased usage of ATM and debit cards during the period. The company’s efficiency ratio in the fourth quarter of 2020 was 59.82%, compared to 64.47% in the same quarter last year. Adjusted to remove the effects of PPP-related transactions, the company’s efficiency ratio for the fourth quarter of 2020 was 65.55%.

Noninterest expense increased $1.4 million, or 8.4%, in the fourth quarter of 2020 to $18.2 million, compared to the quarter ended September 30, 2020. The increase was primarily due to a $772,000, or 8.2%, increase in employee compensation and benefits associated with the resumption of normal levels of employee bonus accruals through the end of the year, as well as a $394,000, or 68.6%, increase in legal and professional fees during the quarter resulting from recruiting costs and additional audit and legal fees. The company’s efficiency ratio in the fourth quarter of 2020 was 59.82%, compared to 57.90% in the prior quarter. Adjusted to remove the effects of PPP-related transactions, the company’s efficiency ratio for the fourth quarter of 2020 was 65.55% and for the third quarter of 2020 was 60.22%.

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

FINANCIAL CONDITION

Consolidated assets for the company totaled $2.74 billion at December 31, 2020, compared to $2.66 billion at September 30, 2020 and $2.32 billion at December 31, 2019. Gross loans decreased 4.7%, or $91.8 million, to $1.87 billion at December 31, 2020, compared to loans of $1.96 billion at September 30, 2020. Gross loans increased 9.4%, or $160.4 million, from $1.71 billion at December 31, 2019. The increase in gross loans during the fourth quarter of 2020 compared to the fourth quarter of 2019 included outstanding PPP loan balances of $139.8 million, to 1,452 borrowers, as of December 31, 2020. Excluding the outstanding PPP balances as of December 31, 2020, gross loans increased $20.6 million, or 1.21%. The decrease in gross loans from the third quarter of 2020 to the fourth quarter of 2020 is primarily due to the $70.0 million, or 33.3%, decline in outstanding PPP loan balances in the fourth quarter of 2020. Excluding the decrease in the balance of PPP loans, gross loans decreased by 1.1%, or $22.0 million, from the prior quarter.

Deposits increased by 2.8%, or $63.3 million, to $2.29 billion at December 31, 2020, compared to $2.22 billion at September 30, 2020. Total deposits increased 16.8%, or $329.6 million, from $1.96 billion at December 31, 2019. Changes in deposits during these periods were heavily impacted by the deposit of PPP loan proceeds into demand accounts at the Bank, as well as apparent changes in depositor spending habits in these periods resulting from economic and other uncertainties due to COVID-19. Shareholders' equity totaled $272.6 million as of December 31, 2020, compared to $266.9 million at September 30, 2020 and $261.6 million at December 31, 2019. The increase from the previous quarter resulted primarily from an increase in net income of $10.0 million, offset by the purchase of treasury stock during the quarter of $2.8 million and the payment of dividends of $2.2 million.

Nonperforming assets as a percentage of total loans were 0.70% at December 31, 2020, compared to 0.72% at September 30, 2020 and December 31, 2019. The Bank’s nonperforming assets consist primarily of nonaccrual loans, three of which are Small Business Administration (SBA) 7(a), partially guaranteed (75%) loans acquired in the June 2018 acquisition of Westbound Bank with combined book balances of $8.7 million as of December 31, 2020. These loans were internally identified as problem assets prior to COVID-19 and are properly reserved. Management continues to work toward a satisfactory resolution for these three loans. Excluding these partially guaranteed SBA loans, non-performing assets as a percentage of total loans at December 31, 2020 would be 0.29% and, excluding PPP loans, would be 0.32%.

During the first and second quarters of 2020, the Bank provided financial relief to many of its customers due to the COVID-19 outbreak through either 3-month principal and interest (“P&I”) payment deferrals or through 6-month interest-only (“I/O”) deferrals. Under the initial deferral program, the Bank provided 3-month P&I deferrals on 658 loans with principal balances of $247.8 million and provided up to 6-month I/O deferrals on 336 loans with principal balances of $183.7 million. As of January 14, 2021, there are 16 loans totaling $50.4 million that remain under a deferral program. There are three loans with outstanding balances of $1.4 million that remain under their initial 6-month I/O deferral. There are 12 loans with principal balances of $46.6 million that have entered a subsequent interest-only deferral. There is one loan with a principal balance of $2.4 million that has entered a subsequent P&I deferral. We will continue to work with these borrowers, who are primarily in the hotel, restaurant and hospitality industries, to allow their businesses and payment sources to recover to normal levels.

The table below provides detail about the current I/O and P&I and deferral programs as of January 14, 2021:

 

 

 

As of January 14, 2021

 

$ in thousands ('000s)

 

I/O Deferred

 

 

P&I Deferred

 

CRE - owner occupied

 

$

3,903

 

 

$

 

CRE - non-owner occupied

 

 

2,403

 

 

 

2,425

 

Construction and development

 

 

679

 

 

 

 

Commercial and industrial

 

 

51

 

 

 

 

Subtotal - deferrals, excluding COVID higher risk industries

 

$

7,036

 

 

$

2,425

 

 

 

 

 

 

 

 

 

 

COVID higher risk industries (excluded from segment subtotals above):

 

 

 

 

 

 

 

 

Restaurant

 

$

3,984

 

 

$

 

Hotel

 

 

36,979

 

 

 

 

Subtotal - deferrals of COVID higher risk industries

 

$

40,963

 

 

$

 

 

 

 

 

 

 

 

 

 

Total of all deferrals

 

$

47,999

 

 

$

2,425

 

 

 

 

 

 

 

 

 

 

% of total loans, excluding PPP

 

 

2.8

%

 

 

0.1

%

 

Finally, management continues to closely monitor loans and concentrations in COVID-19 affected industries. Social distancing, stay-at-home orders and other measures as a result of the virus have particularly affected the restaurant, hospitality, retail commercial real estate (“CRE”) and energy sectors. Excluding SBA partially guaranteed (75%) loans, the Bank has direct exposure, through total loan commitments with weighted average loan-to-values (“LTV”), as of December 31, 2020, of $26.4 million with 60.5% weighted average LTV to restaurants, $56.1 million with 51.5% weighted average LTV to retail CRE and $67.0 million with 56.5% weighted average LTV to hotel/hospitality borrowers.

 

Guaranty Bancshares, Inc.

Consolidated Financial Summary (Unaudited)

(In thousands, except share and per share data)

 

 

 

As of

 

 

 

2020

 

 

2019

 

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

47,836

 

 

$

35,714

 

 

$

35,490

 

 

$

40,354

 

 

$

39,907

 

Federal funds sold

 

 

218,825

 

 

 

101,300

 

 

 

104,375

 

 

 

81,250

 

 

 

45,246

 

Interest-bearing deposits

 

 

85,130

 

 

 

56,357

 

 

 

51,129

 

 

 

25,324

 

 

 

5,561

 

Total cash and cash equivalents

 

 

351,791

 

 

 

193,371

 

 

 

190,994

 

 

 

146,928

 

 

 

90,714

 

Securities available for sale

 

 

380,795

 

 

 

368,887

 

 

 

376,381

 

 

 

377,062

 

 

 

212,716

 

Securities held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

155,458

 

Loans held for sale

 

 

5,542

 

 

 

9,148

 

 

 

7,194

 

 

 

4,024

 

 

 

2,368

 

Loans, net

 

 

1,831,737

 

 

 

1,921,234

 

 

 

1,919,201

 

 

 

1,696,861

 

 

 

1,690,794

 

Accrued interest receivable

 

 

9,834

 

 

 

8,361

 

 

 

11,864

 

 

 

8,148

 

 

 

9,151

 

Premises and equipment, net

 

 

55,212

 

 

 

55,468

 

 

 

55,251

 

 

 

54,496

 

 

 

53,431

 

Other real estate owned

 

 

404

 

 

 

310

 

 

 

402

 

 

 

605

 

 

 

603

 

Cash surrender value of life insurance

 

 

35,510

 

 

 

35,304

 

 

 

34,920

 

 

 

34,713

 

 

 

34,495

 

Core deposit intangible, net

 

 

2,999

 

 

 

3,213

 

 

 

3,426

 

 

 

3,639

 

 

 

3,853

 

Goodwill

 

 

32,160

 

 

 

32,160

 

 

 

32,160

 

 

 

32,160

 

 

 

32,160

 

Other assets

 

 

34,848

 

 

 

35,228

 

 

 

35,402

 

 

 

32,348

 

 

 

32,701

 

Total assets

 

$

2,740,832

 

 

$

2,662,684

 

 

$

2,667,195

 

 

$

2,390,984

 

 

$

2,318,444

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

779,740

 

 

$

776,364

 

 

$

772,179

 

 

$

528,817

 

 

$

525,865

 

Interest-bearing

 

 

1,506,650

 

 

 

1,446,718

 

 

 

1,469,847

 

 

 

1,471,609

 

 

 

1,430,939

 

Total deposits

 

 

2,286,390

 

 

 

2,223,082

 

 

 

2,242,026

 

 

 

2,000,426

 

 

 

1,956,804

 

Securities sold under agreements to repurchase

 

 

15,631

 

 

 

20,520

 

 

 

17,414

 

 

 

11,843

 

 

 

11,100

 

Accrued interest and other liabilities

 

 

25,257

 

 

 

25,814

 

 

 

25,960

 

 

 

23,645

 

 

 

23,061

 

Line of credit

 

 

12,000

 

 

 

7,000

 

 

 

2,000

 

 

 

20,000

 

 

 

 

Federal Home Loan Bank advances

 

 

109,101

 

 

 

99,105

 

 

 

100,610

 

 

 

70,614

 

 

 

55,118

 

Subordinated debentures

 

 

19,810

 

 

 

20,310

 

 

 

20,310

 

 

 

10,810

 

 

 

10,810

 

Total liabilities

 

 

2,468,189

 

 

 

2,395,831

 

 

 

2,408,320

 

 

 

2,137,338

 

 

 

2,056,893

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

 

272,643

 

 

 

266,853

 

 

 

258,875

 

 

 

253,646

 

 

 

261,551

 

Total liabilities and shareholders' equity

 

$

2,740,832

 

 

$

2,662,684

 

 

$

2,667,195

 

 

$

2,390,984

 

 

$

2,318,444

 

 

 

Guaranty Bancshares, Inc.

Consolidated Financial Summary (Unaudited)

(In thousands, except share and per share data)

 

 

 

Quarter Ended

 

 

 

2020

 

 

2019

 

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

STATEMENTS OF EARNINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

26,253

 

 

$

24,956

 

 

$

26,581

 

 

$

25,252

 

 

$

25,848

 

Interest expense

 

 

2,301

 

 

 

2,677

 

 

 

3,399

 

 

 

4,683

 

 

 

5,354

 

Net interest income

 

 

23,952

 

 

 

22,279

 

 

 

23,182

 

 

 

20,569

 

 

 

20,494

 

Provision for credit losses

 

 

 

 

 

(300

)

 

 

12,100

 

 

 

1,400

 

 

 

 

Net interest income after provision for loan losses

 

 

23,952

 

 

 

22,579

 

 

 

11,082

 

 

 

19,169

 

 

 

20,494

 

Noninterest income

 

 

6,426

 

 

 

6,663

 

 

 

4,987

 

 

 

4,961

 

 

 

4,674

 

Noninterest expense

 

 

18,173

 

 

 

16,758

 

 

 

15,184

 

 

 

16,407

 

 

 

16,226

 

Income before income taxes

 

 

12,205

 

 

 

12,484

 

 

 

885

 

 

 

7,723

 

 

 

8,942

 

Income tax provision (benefit)

 

 

2,290

 

 

 

2,350

 

 

 

(190

)

 

 

1,445

 

 

 

1,573

 

Net earnings

 

$

9,915

 

 

$

10,134

 

 

$

1,075

 

 

$

6,278

 

 

$

7,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, basic

 

$

0.90

 

 

$

0.92

 

 

$

0.10

 

 

$

0.55

 

 

$

0.64

 

Earnings per common share, diluted(1)

 

 

0.90

 

 

 

0.92

 

 

 

0.10

 

 

 

0.55

 

 

 

0.63

 

Cash dividends per common share

 

 

0.20

 

 

 

0.20

 

 

 

0.19

 

 

 

0.19

 

 

 

0.18

 

Book value per common share - end of quarter

 

 

24.93

 

 

 

24.29

 

 

 

23.50

 

 

 

22.79

 

 

 

22.65

 

Tangible book value per common share - end of quarter(2)

 

 

21.72

 

 

 

21.07

 

 

 

20.27

 

 

 

19.58

 

 

 

19.53

 

Common shares outstanding - end of quarter

 

 

10,935,415

 

 

 

10,988,239

 

 

 

11,013,804

 

 

 

11,128,556

 

 

 

11,547,443

 

Weighted-average common shares outstanding, basic

 

 

10,966,504

 

 

 

11,012,060

 

 

 

11,025,924

 

 

 

11,432,391

 

 

 

11,533,849

 

Weighted-average common shares outstanding, diluted(1)

 

 

11,014,149

 

 

 

11,012,060

 

 

 

11,025,924

 

 

 

11,432,391

 

 

 

11,621,887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

 

1.48

%

 

 

1.53

%

 

 

0.16

%

 

 

1.09

%

 

 

1.25

%

Return on average equity (annualized)

 

 

14.53

 

 

 

15.21

 

 

 

1.67

 

 

 

9.94

 

 

 

11.24

 

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

 

 

3.85

 

 

 

3.61

 

 

 

3.78

 

 

 

3.87

 

 

 

3.77

 

Efficiency ratio(4)

 

 

59.82

 

 

 

57.90

 

 

 

53.90

 

 

 

64.27

 

 

 

64.47

 

(1) Outstanding options and the closing price of the company's stock as of September 30, June 30 and March 31, 2020 had an anti-dilutive effect on each respective quarter end's weighted-average common shares outstanding; therefore, the effect of their conversion has been excluded from the calculation of the diluted weighted-average common shares outstanding for those periods. The diluted EPS for those quarters has been calculated using the basic weighted-average shares outstanding in order to comply with GAAP. There was not an anti-dilutive effect for the quarters ended December 31, 2020 and 2019.

 

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

 

(3) Net interest margin on a 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.

 

 

Guaranty Bancshares, Inc.

Consolidated Financial Summary (Unaudited)

(In thousands, except share and per share data)

 

 

 

For the Years Ended

 

 

 

December 31,

 

 

 

2020

 

 

2019

 

INCOME STATEMENTS

 

 

 

 

 

 

 

 

Interest income

 

$

103,042

 

 

$

102,561

 

Interest expense

 

 

13,060

 

 

 

23,691

 

Net interest income

 

 

89,982

 

 

 

78,870

 

Provision for loan losses

 

 

13,200

 

 

 

1,250

 

Net interest income after provision for loan losses

 

 

76,782

 

 

 

77,620

 

Noninterest income

 

 

23,037

 

 

 

16,973

 

Noninterest expense

 

 

66,522

 

 

 

62,536

 

Income before income taxes

 

 

33,297

 

 

 

32,057

 

Income tax provision

 

 

5,895

 

 

 

5,778

 

Net earnings

 

$

27,402

 

 

$

26,279

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE DATA

 

 

 

 

 

 

 

 

Earnings per common share, basic

 

$

2.47

 

 

$

2.26

 

Earnings per common share, diluted(1)

 

 

2.47

 

 

 

2.26

 

Cash dividends per common share

 

 

0.78

 

 

 

0.70

 

Book value per common share - end of period

 

 

24.93

 

 

 

22.65

 

Common shares outstanding - end of period

 

 

10,935,415

 

 

 

11,547,443

 

Weighted-average common shares outstanding, basic

 

 

11,108,564

 

 

 

11,638,897

 

Weighted-average common shares outstanding, diluted(1)

 

 

11,108,564

 

 

 

11,705,099

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.07

%

 

 

1.13

%

Return on average equity

 

 

10.39

 

 

 

10.37

 

Net interest margin, fully taxable equivalent(2)

 

 

3.77

 

 

 

3.69

 

Efficiency ratio(3)

 

 

58.86

 

 

 

65.23

 

(1) Outstanding options and the closing price of the company's stock during the year ended December 31, 2020 had a net anti-dilutive effect on the weighted-average common shares outstanding; therefore, the effect of their conversion has been excluded from the calculation of the diluted weighted-average common shares outstanding. The diluted EPS has been calculated using the basic weighted-average shares outstanding in order to comply with GAAP.

(2) Net interest margin on a 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%.

(3) 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

 

 

 

2020

 

 

2019

 

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

LOAN PORTFOLIO COMPOSITION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

445,771

 

 

$

531,152

 

 

$

522,248

 

 

$

297,163

 

 

$

279,583

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and development

 

 

270,407

 

 

 

269,101

 

 

 

265,982

 

 

 

263,973

 

 

 

280,498

 

Commercial real estate

 

 

594,216

 

 

 

602,664

 

 

 

606,061

 

 

 

584,883

 

 

 

567,360

 

Farmland

 

 

78,508

 

 

 

80,197

 

 

 

77,625

 

 

 

78,635

 

 

 

57,476

 

1-4 family residential

 

 

389,096

 

 

 

385,783

 

 

 

383,590

 

 

 

400,605

 

 

 

412,166

 

Multi-family residential

 

 

21,701

 

 

 

19,499

 

 

 

29,692

 

 

 

20,430

 

 

 

37,379

 

Consumer

 

 

51,044

 

 

 

52,855

 

 

 

52,986

 

 

 

52,996

 

 

 

53,245

 

Agricultural

 

 

15,734

 

 

 

17,004

 

 

 

18,981

 

 

 

19,314

 

 

 

18,359

 

Overdrafts

 

 

342

 

 

 

379

 

 

 

275

 

 

 

354

 

 

 

329

 

Total loans(1)(2)

 

$

1,866,819

 

 

$

1,958,634

 

 

$

1,957,440

 

 

$

1,718,353

 

 

$

1,706,395

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

2020

 

 

2019

 

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

ALLOWANCE FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period(3)

 

$

33,757

 

 

$

34,119

 

 

$

21,948

 

 

$

20,750

 

 

$

16,394

 

Loans charged-off

 

 

(159

)

 

 

(101

)

 

 

(59

)

 

 

(224

)

 

 

(221

)

Recoveries

 

 

21

 

 

 

39

 

 

 

130

 

 

 

22

 

 

 

29

 

Provision for loan loss expense

 

 

 

 

 

(300

)

 

 

12,100

 

 

 

1,400

 

 

 

 

Balance at end of period

 

$

33,619

 

 

$

33,757

 

 

$

34,119

 

 

$

21,948

 

 

$

16,202

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses / period-end loans

 

 

1.80

%

 

 

1.72

%

 

 

1.74

%

 

 

1.28

%

 

 

0.95

%

Allowance for loan losses / nonperforming loans

 

 

264.6

 

 

 

245.0

 

 

 

235.6

 

 

 

135.2

 

 

 

143.9

 

Net charge-offs (recoveries) / average loans (annualized)

 

 

0.03

 

 

 

0.01

 

 

 

(0.02

)

 

 

0.05

 

 

 

0.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans(4)

 

$

12,705

 

 

$

13,780

 

 

$

14,480

 

 

$

16,232

 

 

$

11,262

 

Other real estate owned

 

 

404

 

 

 

310

 

 

 

402

 

 

 

605

 

 

 

603

 

Repossessed assets owned

 

 

6

 

 

 

3

 

 

 

38

 

 

 

292

 

 

 

392

 

Total non-performing assets

 

$

13,115

 

 

$

14,093

 

 

$

14,920

 

 

$

17,129

 

 

$

12,257

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets as a percentage of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans(1)(2)

 

 

0.70

%

 

 

0.72

%

 

 

0.76

%

 

 

1.00

%

 

 

0.72

%

Total loans, excluding PPP(1)(2)

 

 

0.76

 

 

 

0.81

 

 

 

0.85

 

 

 

1.00

 

 

 

0.72

 

Total assets

 

 

0.48

 

 

 

0.53

 

 

 

0.56

 

 

 

0.72

 

 

 

0.53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TDR loans - nonaccrual

 

$

90

 

 

$

92

 

 

$

95

 

 

$

97

 

 

$

101

 

TDR loans - accruing

 

 

9,626

 

 

 

7,891

 

 

 

7,216

 

 

 

7,220

 

 

 

7,240

 

(1) Excludes outstanding balances of loans held for sale of $5.5 million, $9.1 million, $7.2 million, $4.0 million, and $2.4 million as of December 31, September 30, June 30 and March 31, 2020 and December 31, 2019, respectively.

(2) Excludes deferred loan (fees) costs of $(1.5) million, $(3.6) million, $(4.1) million, $456,000, and $601,000 as of December 31, September 30, June 30 and March 31, 2020 and December 31, 2019, respectively.

(3) The balance at the beginning of the period ended March 31, 2020 includes a $4.5 million impact of adopting ASC 326.

(4) TDR loans - nonaccrual are included in nonaccrual loans, which are a component of nonperforming loans.

 

Guaranty Bancshares, Inc.

Selected Financial Data (Unaudited)

(In thousands)

 

 

 

Quarter Ended

 

 

 

2020

 

 

2019

 

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges

 

$

868

 

 

$

717

 

 

$

571

 

 

$

908

 

 

$

1,022

 

Net realized gain on sale of loans

 

 

2,023

 

 

 

2,114

 

 

 

1,508

 

 

 

1,189

 

 

 

780

 

Fiduciary and custodial income

 

 

513

 

 

 

511

 

 

 

474

 

 

 

514

 

 

 

455

 

Bank-owned life insurance income

 

 

205

 

 

 

208

 

 

 

207

 

 

 

218

 

 

 

214

 

Merchant and debit card fees

 

 

1,396

 

 

 

1,654

 

 

 

1,334

 

 

 

1,131

 

 

 

1,140

 

Loan processing fee income

 

 

167

 

 

 

181

 

 

 

130

 

 

 

150

 

 

 

157

 

Other noninterest income

 

 

1,254

 

 

 

1,278

 

 

 

763

 

 

 

851

 

 

 

906

 

Total noninterest income

 

$

6,426

 

 

$

6,663

 

 

$

4,987

 

 

$

4,961

 

 

$

4,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

$

10,211

 

 

$

9,439

 

 

$

8,077

 

 

$

9,466

 

 

$

9,332

 

Occupancy expenses

 

 

2,596

 

 

 

2,597

 

 

 

2,550

 

 

 

2,477

 

 

 

2,498

 

Legal and professional fees

 

 

968

 

 

 

574

 

 

 

589

 

 

 

519

 

 

 

611

 

Software and technology

 

 

1,127

 

 

 

1,093

 

 

 

945

 

 

 

939

 

 

 

902

 

Amortization

 

 

340

 

 

 

338

 

 

 

338

 

 

 

333

 

 

 

338

 

Director and committee fees

 

 

251

 

 

 

211

 

 

 

165

 

 

 

219

 

 

 

188

 

Advertising and promotions

 

 

356

 

 

 

301

 

 

 

408

 

 

 

433

 

 

 

523

 

ATM and debit card expense

 

 

545

 

 

 

509

 

 

 

479

 

 

 

418

 

 

 

456

 

Telecommunication expense

 

 

244

 

 

 

231

 

 

 

209

 

 

 

180

 

 

 

168

 

FDIC insurance assessment fees

 

 

252

 

 

 

252

 

 

 

122

 

 

 

195

 

 

 

 

Other noninterest expense

 

 

1,283

 

 

 

1,213

 

 

 

1,302

 

 

 

1,228

 

 

 

1,210

 

Total noninterest expense

$

18,173

$

16,758

$

15,184

$

16,407

$

16,226

 
 

Guaranty Bancshares, Inc.

Selected Financial Data (Unaudited)

(In thousands)

 

 

 

For the Three Months Ended December 31,

 

 

 

2020

 

 

2019

 

 

 

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)

 

$

1,937,556

 

 

$

23,998

 

 

 

4.93

%

 

$

1,727,866

 

 

$

23,159

 

 

 

5.32

%

Securities available for sale

 

 

374,362

 

 

 

2,087

 

 

 

2.22

 

 

 

225,002

 

 

 

1,343

 

 

 

2.37

 

Securities held to maturity

 

 

 

 

 

 

 

 

 

 

 

156,263

 

 

 

989

 

 

 

2.51

 

Nonmarketable equity securities

 

 

9,617

 

 

 

106

 

 

 

4.38

 

 

 

9,078

 

 

 

169

 

 

 

7.39

 

Interest-bearing deposits in other banks

 

 

175,410

 

 

 

62

 

 

 

0.14

 

 

 

44,962

 

 

 

188

 

 

 

1.66

 

Total interest-earning assets

 

 

2,496,945

 

 

 

26,253

 

 

 

4.18

 

 

 

2,163,171

 

 

 

25,848

 

 

 

4.74

 

Allowance for loan losses

 

 

(33,712

)

 

 

 

 

 

 

 

 

 

 

(16,312

)

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

 

196,492

 

 

 

 

 

 

 

 

 

 

 

194,907

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,659,725

 

 

 

 

 

 

 

 

 

 

$

2,341,766

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

1,469,890

 

 

$

1,878

 

 

 

0.51

%

 

$

1,450,592

 

 

$

4,930

 

 

 

1.35

%

Advances from FHLB and fed funds purchased

 

 

66,331

 

 

 

124

 

 

 

0.74

 

 

 

45,614

 

 

 

263

 

 

 

2.29

 

Line of credit

 

 

10,696

 

 

 

94

 

 

 

3.50

 

 

 

 

 

 

 

 

 

 

Subordinated debentures

 

 

19,989

 

 

 

191

 

 

 

3.80

 

 

 

11,305

 

 

 

154

 

 

 

5.40

 

Securities sold under agreements to repurchase

 

 

20,902

 

 

 

14

 

 

 

0.27

 

 

 

11,469

 

 

 

7

 

 

 

0.24

 

Total interest-bearing liabilities

 

 

1,587,808

 

 

 

2,301

 

 

 

0.58

 

 

 

1,518,980

 

 

 

5,354

 

 

 

1.40

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

772,422

 

 

 

 

 

 

 

 

 

 

 

532,965

 

 

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

 

28,098

 

 

 

 

 

 

 

 

 

 

 

29,661

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

800,520

 

 

 

 

 

 

 

 

 

 

 

562,626

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

271,397

 

 

 

 

 

 

 

 

 

 

 

260,160

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

2,659,725

 

 

 

 

 

 

 

 

 

 

$

2,341,766

 

 

 

 

 

 

 

 

 

Net interest rate spread(2)

 

 

 

 

 

 

 

 

 

 

3.60

%

 

 

 

 

 

 

 

 

 

 

3.34

%

Net interest income

 

 

 

 

 

$

23,952

 

 

 

 

 

 

 

 

 

 

$

20,494

 

 

 

 

 

Net interest margin(3)

 

 

 

 

 

 

 

 

 

 

3.82

%

 

 

 

 

 

 

 

 

 

 

3.77

%

Net interest margin, fully taxable equivalent(4)

 

 

 

 

 

 

 

 

 

 

3.85

%

 

 

 

 

 

 

 

 

 

 

3.77

%

(1) Includes average outstanding balances of loans held for sale of $5.8 million and $3.8 million for the three months ended December 31, 2020 and 2019, 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 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%.

 

 

Guaranty Bancshares, Inc.

Selected Financial Data (Unaudited)

(In thousands)

 

 

 

For The Years Ended December 31,

 

 

 

2020

 

 

2019

 

 

 

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)

 

$

1,872,914

 

 

$

93,335

 

 

 

4.98

%

 

$

1,689,108

 

 

$

90,980

 

 

 

5.39

%

Securities available for sale

 

 

338,510

 

 

 

7,798

 

 

 

2.30

 

 

 

229,351

 

 

 

5,715

 

 

 

2.49

 

Securities held to maturity

 

 

35,935

 

 

 

956

 

 

 

2.66

 

 

 

159,104

 

 

 

4,031

 

 

 

2.53

 

Nonmarketable equity securities

 

 

10,761

 

 

 

439

 

 

 

4.08

 

 

 

11,343

 

 

 

640

 

 

 

5.64

 

Interest-bearing deposits in other banks

 

 

146,659

 

 

 

514

 

 

 

0.35

 

 

 

53,783

 

 

 

1,195

 

 

 

2.22

 

Total interest-earning assets

 

 

2,404,779

 

 

 

103,042

 

 

 

4.28

 

 

 

2,142,689

 

 

 

102,561

 

 

 

4.79

 

Allowance for credit losses

 

 

(29,100

)

 

 

 

 

 

 

 

 

 

 

(15,692

)

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

 

195,324

 

 

 

 

 

 

 

 

 

 

 

191,942

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,571,003

 

 

 

 

 

 

 

 

 

 

$

2,318,939

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

1,468,353

 

 

$

11,624

 

 

 

0.79

%

 

$

1,460,215

 

 

$

21,611

 

 

 

1.48

%

Advances from FHLB and fed funds purchased

 

 

75,940

 

 

 

470

 

 

 

0.62

 

 

 

58,070

 

 

 

1,389

 

 

 

2.39

 

Line of credit

 

 

6,727

 

 

 

213

 

 

 

3.17

 

 

 

 

 

 

 

 

 

 

Subordinated debentures

 

 

17,198

 

 

 

702

 

 

 

4.08

 

 

 

11,905

 

 

 

655

 

 

 

5.50

 

Securities sold under agreements to repurchase

 

 

18,115

 

 

 

51

 

 

 

0.28

 

 

 

10,901

 

 

 

36

 

 

 

0.33

 

Total interest-bearing liabilities

 

 

1,586,333

 

 

 

13,060

 

 

 

0.82

 

 

 

1,541,091

 

 

 

23,691

 

 

 

1.54

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

696,454

 

 

 

 

 

 

 

 

 

 

 

500,895

 

 

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

 

24,450

 

 

 

 

 

 

 

 

 

 

 

23,430

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

720,904

 

 

 

 

 

 

 

 

 

 

 

524,325

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

263,766

 

 

 

 

 

 

 

 

 

 

 

253,523

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

2,571,003

 

 

 

 

 

 

 

 

 

 

$

2,318,939

 

 

 

 

 

 

 

 

 

Net interest rate spread(2)

 

 

 

 

 

 

 

 

 

 

3.46

%

 

 

 

 

 

 

 

 

 

 

3.25

%

Net interest income

 

 

 

 

 

$

89,982

 

 

 

 

 

 

 

 

 

 

$

78,870

 

 

 

 

 

Net interest margin(3)

 

 

 

 

 

 

 

 

 

 

3.74

%

 

 

 

 

 

 

 

 

 

 

3.68

%

Net interest margin, fully taxable equivalent(4)

 

 

 

 

 

 

 

 

 

 

3.77

%

 

 

 

 

 

 

 

 

 

 

3.69

%

(1) Includes average outstanding balances of loans held for sale of $6.0 million and $2.7 million for the years ended December 31, 2020 and 2019, 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.

 

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

 

 

Guaranty Bancshares, Inc.

Reconciliation of Non-GAAP Financial Measures (Unaudited)

(In thousands, except share and per share data)

 

Tangible Book Value per Common Share

 

 

As of

 

 

 

2020

 

 

2019

 

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

Total shareholders’ equity

 

$

272,643

 

 

$

266,853

 

 

$

258,875

 

 

$

253,646

 

 

$

261,551

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(32,160

)

 

 

(32,160

)

 

 

(32,160

)

 

 

(32,160

)

 

 

(32,160

)

Core deposit intangible, net

 

 

(2,999

)

 

 

(3,213

)

 

 

(3,426

)

 

 

(3,639

)

 

 

(3,853

)

Total tangible common equity

 

$

237,484

 

 

$

231,480

 

 

$

223,289

 

 

$

217,847

 

 

$

225,538

 

Common shares outstanding - end of quarter(1)

 

 

10,935,415

 

 

 

10,988,239

 

 

 

11,013,804

 

 

 

11,128,556

 

 

 

11,547,443

 

Book value per common share

 

$

24.93

 

 

$

24.29

 

 

$

23.50

 

 

$

22.79

 

 

$

22.65

 

Tangible book value per common share

 

 

21.72

 

 

 

21.07

 

 

 

20.27

 

 

 

19.58

 

 

 

19.53

 

 

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

 

Net Core Earnings and Net Core Earnings per Common Share

 

 

Quarter Ended

 

 

 

2020

 

 

2019

 

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

Net earnings

 

$

9,915

 

 

$

10,134

 

 

$

1,075

 

 

$

6,278

 

 

$

7,369

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

 

 

 

(300

)

 

 

12,100

 

 

 

1,400

 

 

 

 

Income tax provision (benefit)

 

 

2,290

 

 

 

2,350

 

 

 

(190

)

 

 

1,445

 

 

 

1,573

 

PPP loans, including fees

 

 

(2,654

)

 

 

(1,076

)

 

 

(2,540

)

 

 

 

 

 

 

Net interest expense on PPP-related borrowings

 

 

 

 

 

3

 

 

 

31

 

 

 

 

 

 

 

Net core earnings

 

$

9,551

 

 

$

11,111

 

 

$

10,476

 

 

$

9,123

 

 

$

8,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding, basic

 

 

10,966,504

 

 

 

11,012,060

 

 

 

11,025,924

 

 

 

11,432,391

 

 

 

11,533,849

 

Earnings per common share, basic

 

$

0.90

 

 

$

0.92

 

 

$

0.10

 

 

$

0.55

 

 

$

0.64

 

Net core earnings per common share, basic

 

 

0.87

 

 

 

1.01

 

 

 

0.95

 

 

 

0.80

 

 

 

0.78

 

 
 

Net Core Earnings to Average Assets, as Adjusted, and Average Equity

 

 

Quarter Ended

 

 

 

2020

 

 

2019

 

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

Net core earnings

 

$

9,551

 

 

$

11,111

 

 

$

10,476

 

 

$

9,123

 

 

$

8,942

 

Total average assets

 

$

2,659,725

 

 

$

2,639,335

 

 

$

2,657,609

 

 

$

2,325,618

 

 

$

2,341,766

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PPP loan average balance

 

 

(179,240

)

 

 

(209,506

)

 

 

(163,184

)

 

 

 

 

 

 

Excess fed funds sold due to PPP-related borrowings

 

 

 

 

 

(8,152

)

 

 

(84,066

)

 

 

 

 

 

 

Total average assets, adjusted

 

$

2,480,485

 

 

$

2,421,677

 

 

$

2,410,359

 

 

$

2,325,618

 

 

$

2,341,766

 

Net core earnings to average assets, as adjusted (annualized)

 

 

1.53

 

 

 

1.83

 

 

 

1.75

 

 

 

1.58

 

 

 

1.51

 

Total average equity

 

$

271,397

 

 

$

265,027

 

 

$

258,225

 

 

$

251,159

 

 

$

260,160

 

Net core earnings to average equity (annualized)

 

 

14.00

 

 

 

16.68

 

 

 

16.32

 

 

 

14.61

 

 

 

13.64

 

 
 

Guaranty Bancshares, Inc.

Reconciliation of Non-GAAP Financial Measures (Unaudited)

(In thousands, except share and per share data)

 

Total Non-Performing Assets to Total Loan, Excluding PPP

 

 

Quarter Ended

 

 

 

2020

 

 

2019

 

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

Total loans(1)(2)

 

$

1,866,819

 

 

$

1,958,634

 

 

$

1,957,440

 

 

$

1,718,353

 

 

$

1,706,395

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PPP loans balance

 

 

(139,808

)

 

 

(209,609

)

 

 

(208,793

)

 

 

 

 

 

 

Total loans, excluding PPP(1)(2)

 

$

1,727,011

 

 

$

1,749,025

 

 

$

1,748,647

 

 

$

1,718,353

 

 

$

1,706,395

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing assets

 

$

13,115

 

 

$

14,093

 

 

$

14,920

 

 

$

17,129

 

 

$

12,257

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets as a percentage of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans(1)(2)

 

 

0.70

%

 

 

0.72

%

 

 

0.76

%

 

 

1.00

%

 

 

0.72

%

Total loans, excluding PPP(1)(2)

 

 

0.76

 

 

 

0.81

 

 

 

0.85

 

 

 

1.00

 

 

 

0.72

 

(1) Excludes outstanding balances of loans held for sale of $5.5 million, $9.1 million, $7.2 million, $4.0 million, and $2.4 million as of December 31, September 30, June 30 and March 31, 2020 and December 31, 2019, respectively.

 

(2) Excludes deferred loan (fees) costs of $(1.5) million, $(3.6) million, $(4.1) million, $456,000, and $601,000 as of December 31, September 30, June 30 and March 31, 2020 and December 31, 2019, respectively.

 

 

Total Interest-Earning Assets and Borrowings, net of PPP Effects

 

 

For the Three Months Ended
December 31, 2020

 

 

For the Year Ended
December 31, 2020

 

 

 

Average
Outstanding
Balance

 

 

Interest
Earned/
Interest
Paid

 

 

Average
Yield/ Rate

 

 

Average
Outstanding
Balance

 

 

Interest
Earned/
Interest
Paid

 

 

Average
Yield/ Rate

 

Total interest-earning assets

 

$

2,496,945

 

 

$

26,253

 

 

 

4.18

%

 

$

2,404,779

 

 

$

103,042

 

 

 

4.28

%

Total loans(1)

 

 

1,937,556

 

 

 

23,998

 

 

 

4.93

 

 

 

1,872,914

 

 

 

93,335

 

 

 

4.98

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PPP loan average balance and net fees(1)

 

 

(179,240

)

 

 

(2,654

)

 

 

5.89

 

 

 

(138,291

)

 

 

(6,270

)

 

 

4.53

 

Total loans, net of PPP effects

 

 

1,758,316

 

 

 

21,344

 

 

 

4.83

 

 

 

1,734,623

 

 

 

87,065

 

 

 

5.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest-bearing deposits in other banks

 

 

175,410

 

 

 

62

 

 

 

0.14

 

 

 

146,659

 

 

 

514

 

 

 

0.35

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess fed funds sold due to PPP-related borrowings

 

 

 

 

 

 

 

 

 

 

 

(22,951

)

 

 

(23

)

 

 

0.10

 

Total interest-bearing deposits in other banks, net of PPP effects

 

 

175,410

 

 

 

62

 

 

 

0.14

 

 

 

123,708

 

 

 

491

 

 

 

0.40

 

Total interest-earning assets, net of PPP effects

 

$

2,317,705

 

 

$

23,599

 

 

 

4.05

%

 

$

2,243,537

 

 

$

96,749

 

 

 

4.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total advances from FHLB and fed funds purchased

 

 

66,331

 

 

 

124

 

 

 

0.74

 

 

 

75,940

 

 

 

470

 

 

 

0.62

 

Interest expense adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PPP-related FHLB borrowings

 

 

 

 

 

 

 

 

 

 

 

(22,951

)

 

 

(57

)

 

 

0.25

 

Total advances from FHLB and fed funds purchased, net of PPP effects

 

$

66,331

 

 

$

124

 

 

 

0.74

%

 

$

52,989

 

 

$

413

 

 

 

0.78

%

(1) Interest earned consists of interest income of $470,000 and $1.4 million, and net origination fees recognized in earnings of $2.2 million and $4.9 million for the three months and year ended December 31, 2020

 

 

Guaranty Bancshares, Inc.

Reconciliation of Non-GAAP Financial Measures (Unaudited)

(In thousands, except share and per share data)

 

Net Interest Income and Net Interest Margin, Net of PPP Effects

 

 

For the Three Months Ended
December 31, 2020

 

 

For the Year Ended
December 31, 2020

 

 

 

Average
Outstanding
Balance

 

 

Interest
Earned/
Interest
Paid

 

 

Average
Yield/ Rate

 

 

Average
Outstanding
Balance

 

 

Interest
Earned/
Interest
Paid

 

 

Average
Yield/ Rate

 

Net interest income

 

 

 

 

 

$

23,952

 

 

 

 

 

 

 

 

 

 

$

89,982

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PPP-related interest income

 

 

 

 

 

 

(470

)

 

 

 

 

 

 

 

 

 

 

(1,404

)

 

 

 

 

PPP-related net origination fees

 

 

 

 

 

 

(2,184

)

 

 

 

 

 

 

 

 

 

 

(4,866

)

 

 

 

 

Excess fed funds sold due to PPP-related borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(23

)

 

 

 

 

PPP-related FHLB borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

57

 

 

 

 

 

Net interest income, net of PPP effects

 

 

 

 

 

$

21,298

 

 

 

 

 

 

 

 

 

 

$

83,746

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest-earning assets

 

$

2,496,945

 

 

 

 

 

 

 

 

 

 

$

2,404,779

 

 

 

 

 

 

 

 

 

Total interest-earning assets, net of PPP effects

 

 

2,317,705

 

 

 

 

 

 

 

 

 

 

 

2,243,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin(1)

 

 

 

 

 

 

 

 

 

 

3.82

%

 

 

 

 

 

 

 

 

 

 

3.74

%

Net interest margin, net of PPP effects

 

 

 

 

 

 

 

 

 

 

3.66

%

 

 

 

 

 

 

 

 

 

 

3.73

%

 

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

 
 

Efficiency Ratio, Net of PPP Effects

 

 

For the Three Months Ended
December 31, 2020

 

 

For the Year Ended
December 31, 2020

 

 

 

Interest
Earned/
Interest
Paid

 

 

Average
Yield/ Rate

 

 

Interest
Earned/
Interest
Paid

 

 

Average
Yield/ Rate

 

Total noninterest expense

 

$

18,173

 

 

 

 

 

 

$

66,522

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PPP-related deferred costs

 

 

 

 

 

 

 

 

 

862

 

 

 

 

 

Total noninterest expense, net of PPP effects

 

$

18,173

 

 

 

 

 

 

$

67,384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

23,952

 

 

 

 

 

 

 

89,982

 

 

 

 

 

Net interest income, net of PPP effects

 

 

21,298

 

 

 

 

 

 

 

83,746

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

$

6,426

 

 

 

 

 

 

$

23,037

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio(1)

 

 

 

 

 

 

59.82

%

 

 

 

 

 

 

58.86

%

Efficiency ratio, net of PPP effects(2)

 

 

 

 

 

 

65.55

 

 

 

 

 

 

 

63.10

 

(1) 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.

 

(2) The efficiency ratio, net of PPP effects, was calculated by dividing total noninterest expense, net of PPP-related deferred costs, by net interest income, net of PPP effects, plus noninterest income, excluding securities gains or losses. Taxes are not part of this calculation.

 

About Non-GAAP Financial Measures

Certain of the financial measures and ratios we present, including “tangible book value per share”, “net core earnings,” “core net interest margin,” and PPP-adjusted metrics 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 fourth quarter and year-end 2020 financial results on Tuesday, January 19, 2021 at 10:00 am CST. The conference call will be hosted by Ty Abston, Chairman and CEO, Cappy Payne, SEVP and CFO, and Shalene Jacobson, EVP and CRO. All conference attendees must register before the call at https://www.gnty.com/register. The conference materials will be available by accessing the Investor Relations page on our website, gnty.com. A recording of the conference call will be available by 1:00 pm CST the day of the call and remain available through January 31, 2021 on our Investor Relations webpage.

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 services. Guaranty Bank & Trust has 31 banking locations across 24 Texas communities located within the East Texas, Dallas/Fort Worth, greater Houston and Central Texas regions of the state. As of December 31, 2020, Guaranty Bancshares, Inc. had total assets of $2.7 billion, total loans of $1.9 billion and total deposits of $2.3 billion. Visit 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. Actual results will also be significantly impacted by the effects of the ongoing COVID-19 pandemic, including, among other effects: the impact of the public health crisis; the extent and duration of closures of businesses, including our branches, vendors and customers; the operation of financial markets; employment levels; market liquidity; the impact of various actions taken in response by the U.S. federal government, the Federal Reserve, other banking regulators, state and local governments; the adequacy of our allowance for loan losses in relation to potential losses in our loan portfolio; and the impact that all of these factors have on our borrowers, other customers, vendors and counterparties. 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"). 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.

Contacts

Cappy Payne
Senior Executive Vice President and Chief Financial Officer
Guaranty Bancshares, Inc.
(888) 572-9881
investors@gnty.com

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Contacts

Cappy Payne
Senior Executive Vice President and Chief Financial Officer
Guaranty Bancshares, Inc.
(888) 572-9881
investors@gnty.com