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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210119005362/en/
Cappy Payne Senior Executive Vice President and Chief Financial
Officer Guaranty Bancshares, Inc. (888) 572-9881
investors@gnty.com
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