Guaranty Bancshares, Inc. (NASDAQ: GNTY) (the "Company"), the
parent company of Guaranty Bank & Trust, N.A. (the "Bank"),
today reported financial results for the fiscal quarter ended
September 30, 2022. The Company's net income available to common
shareholders was $10.9 million, or $0.92 per basic share, for the
quarter ended September 30, 2022, compared to $10.8 million, or
$0.90 per basic share, for the quarter ended June 30, 2022 and $9.3
million, or $0.77 per basic share, for the quarter ended September
30, 2021. Return on average assets and average equity for the third
quarter of 2022 were 1.30% and 14.87%, respectively, compared to
1.35% and 14.85%, respectively, for the second quarter of 2022 and
1.24% and 12.44%, respectively, for the third quarter of 2021. The
increase in earnings during the third quarter of 2022, compared to
the second quarter of 2022, was primarily due to higher interest
income during the period, and was partially offset by a provision
for credit losses, lower non-interest income and higher
non-interest expense. Our net core earnings†, excluding
provisions for credit losses, income taxes and PPP1/PPP2 net
income, as well as our core net interest margin, adjusted to
exclude the effects of PPP1/PPP2 loans, are described further in
tables below.
"Our third quarter results were strong with continued loan
growth, slightly higher deposits and an increase in net core
earnings of $1.0 million from the second quarter of 2022. Net
interest margin continues to improve as new and existing loans are
booked at higher yields. Excluding PPP and warehouse loans, our
loan portfolio grew 6.8% during the third quarter and 24.3%
year-to-date. However, as interest rates continue to increase and
projections for a recession become more widespread, we anticipate
loan growth to slow in the fourth quarter of 2022 and more
significantly in 2023 as tighter underwriting standards and
anticipated declines in new loan demand unfold. Our Bank is well
positioned to continue serving our customers and shareholders,
regardless of economic and rate volatility, with effective asset
and liability management, strong core deposits, and a good
loan-to-deposit ratio of 81.2% as of quarter-end. Nonperforming
assets are low and manageable. We have a solid earnings stream that
should continue to deliver good financial outcomes for our Company
and financial strength for our balance sheet. Guaranty has a
history of good performance while navigating both rising rate and
recessionary cycles, which is part of our strategic objectives in
how we look at on-going risk management of the Company," commented
Ty Abston, the Company's Chairman and Chief Executive Officer.
QUARTERLY HIGHLIGHTS
- Strong Loan Growth. The third quarter of 2022 saw strong
organic loan growth, increasing $127.7 million, or 6.0%, during the
quarter. Excluding PPP and warehouse lending changes, our loans
increased $144.1 million, or 6.8%, during the quarter. Our loan
growth is a result of internally generated sources and is not from
loan purchases from other originators.
- Solid Net Earnings and Core Earnings. Net earnings have
trended upwards quarter-over-quarter, with earnings per share of
$0.92 in the current quarter and $0.90 in the prior quarter. Net
core earnings†, which exclude provisions for credit losses
and income tax, and net PPP income, have also trended upwards
quarter over quarter, demonstrating a solid and consistent core
earnings stream. Net core earnings† were $13.8 million for
the third quarter, compared to $12.8 million for the second quarter
of 2022, and $9.7 million during the third quarter of 2021.
- Good Asset Quality. Nonperforming assets as a percentage
of total assets were 0.28% at September 30, 2022, compared to 0.30%
at June 30, 2022 and 0.11% at September 30, 2021. Net charge-offs
(annualized) to average loans were 0.07% for the quarter ended
September 30, 2022, compared to 0.02% for the quarter ended June
30, 2022, and 0.05% for the quarter ended September 30, 2021. A
provision for credit losses of $600,000 was recorded during the
third quarter, primarily resulting from loan growth as qualitative
factors remained mostly consistent with the second quarter of 2022.
We anticipate increases to certain qualitative factor adjustments
in the fourth quarter of 2022 to continue incorporating recession
forecasts in 2023.
- Repricing and Asset Liability Management. The Bank is
slightly asset-sensitive and should see benefits from expected rate
increases by the Federal Reserve in November and December of 2022.
We continue to be well-positioned for loan funding and liquidity
with a loan-to-deposit ratio at quarter-end of 81.2%. Our FHLB
advances were $225.0 million as of September 30, 2022 and are
expected to be paid down in 2023 from balance sheet cash flows.
Approximately $124.4 million in securities will mature or pay down
by December 31, 2022 and $217.0 million within 12 months. As of
September 30, 2022, $264.5 million, or 11.7% of our loan portfolio
is fully floating and $1.2 billion, or 52.8% are adjustable rate
term loans, repricing at defined future time periods. Additional
Fed rate increases will result in the repricing of approximately
$354.5 million, or 15.7%, of our total loans by December 31, 2022.
Although we have raised interest rates paid on deposit accounts,
we've maintained a conservative approach to increases thus far in
2022, but anticipate continued upward trends in deposit betas
during 2023. A total of 40.9% of our deposits are
noninterest-bearing and total cost of funds on total deposits
during the third quarter was 0.35%.
† Non-GAAP financial metric. Calculations of this metric
and reconciliations to GAAP are included in the schedules
accompanying this release.
RESULTS OF OPERATIONS
Participation in the PPP1 and PPP2 program, as well as
COVID-related provisions for credit losses, has created temporary
extraordinary results in the calculation of net earnings and
related performance ratios. The following table illustrates net
earnings and net core earnings results, which are pre-tax,
pre-provision and pre-extraordinary PPP1/PPP2 income, as well as
performance ratios for the prior five quarters:
Quarter Ended
2022
2021
(dollars in thousands, except per share
data)
September 30
June 30
March 31
December 31
September 30
Net earnings attributable to Guaranty
Bancshares, Inc.
$
10,903
$
10,784
$
10,738
$
9,159
$
9,253
Adjustments:
Provision for credit losses
600
—
(1,250
)
—
(700
)
Income tax provision
2,363
2,472
2,235
1,923
2,179
PPP loan interest and fees
(57
)
(436
)
(783
)
(958
)
(1,005
)
Net core earnings attributable to Guaranty
Bancshares, Inc.†
$
13,809
$
12,820
$
10,940
$
10,124
$
9,727
Total average assets
$
3,337,348
$
3,209,440
$
3,146,339
$
3,021,079
$
2,953,181
Adjustments:
PPP loans average balance
(1,159
)
(8,885
)
(36,720
)
(61,062
)
(107,931
)
Total average assets, adjusted†
$
3,336,189
$
3,200,555
$
3,109,619
$
2,960,017
$
2,845,250
Total average equity
$
290,806
$
291,312
$
301,579
$
301,398
$
295,076
PERFORMANCE RATIOS
Net earnings to average assets
(annualized)
1.30
%
1.35
%
1.38
%
1.20
%
1.24
%
Net earnings to average equity
(annualized)
14.87
14.85
14.44
12.06
12.44
Net core earnings to average assets, as
adjusted (annualized)†
1.64
1.61
1.43
1.36
1.36
Net core earnings to average equity
(annualized)†
18.84
17.65
14.71
13.33
13.08
PER COMMON SHARE DATA
Weighted-average common shares
outstanding, basic
11,907,233
11,968,227
12,109,074
12,097,100
12,067,769
Earnings per common share, basic
$
0.92
$
0.90
$
0.89
$
0.76
$
0.77
Net core earnings per common share,
basic†
1.16
1.07
0.90
0.84
0.81
† 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 credit losses, in
the third quarter of 2022 and 2021 was $28.3 million and $23.6
million, respectively, an increase of $4.7 million, or 20.1%. The
increase in net interest income resulted from an increase in
interest income of $7.2 million, or 28.7%, which was partially
offset by an increase in interest expense of $2.5 million, or
151.0%, quarter over quarter. Interest income on loans increased
$4.9 million, or 21.5%, during the current quarter compared to the
prior year quarter. In addition, interest income from investment
securities and other interest income increased $2.4 million, or
90.9%, from the same quarter in the prior year.
Net interest margin, on a fully taxable equivalent basis, for
the third quarter of 2022 and 2021 was 3.59% and 3.40%,
respectively. Net interest margin increased 19 basis points
primarily due to a 49 basis point yield increase on total interest
earning assets, which was partially offset by a 48 basis point
increase in the cost of interest bearing liabilities. The increase
in yield on interest earning assets resulted in part from average
loan yields increasing from 4.67% for the third quarter of 2021 to
4.97% for the third quarter of 2022, an increase of 30 basis
points, due to increases in the federal fund target interest rates.
Additionally, we reinvested a large amount of interest bearing
deposits held at other banks, which earned a yield of 0.10% in the
prior year quarter, into higher yielding investment securities and
loans. The increase in the cost of interest bearing liabilities was
due primarily to an increase in the cost of interest-bearing
deposits from 0.33% to 0.59%, a change of 26 basis points, in the
third quarter of 2022 compared to the same period in 2021, as well
as increased rates on FHLB advances, which increased from 0.87% to
2.37%, an increase of 150 basis points, quarter over quarter.
Net interest income, before the provision for credit losses,
increased $1.4 million, or 5.4%, from $26.9 million in the second
quarter of 2022 to $28.3 million in the third quarter of 2022. The
increase in net interest income resulted primarily from an increase
in loan income of $2.9 million, or 11.7%, from the prior quarter,
as well as an increase in investment security income of $516,000,
or 12.5% from the prior quarter. Those increases were partially
offset by an increase in interest expense on FHLB advances and fed
funds purchased of $1.0 million, or 537.4%, and an increase in
expense on interest-bearing deposits of $832,000, or 51.3% from the
second to third quarter of 2022.
Net interest margin, on a taxable equivalent basis, decreased
from 3.61% for the second quarter of 2022 to 3.59% for the third
quarter of 2022, a decrease of two basis points. The decrease in
net interest margin was primarily due to an increase in the cost of
FHLB advances and fed funds purchased from 1.62% in the second
quarter to 2.37% in the third quarter, a change of 75 basis points.
Additionally, there was an increase in the cost of interest-bearing
deposits from 0.38% in the second quarter to 0.59% in the third
quarter of 2022, a change of 21 basis points. These increases in
cost were offset by an increase in loan yield from 4.77% for the
second quarter of 2022 to 4.97% for the third quarter of 2022, a
change of 20 basis points.
The Bank’s participation in the PPP program created temporary
extraordinary results in the calculation of net interest margin. To
illustrate the impact of the PPP program on net interest margin,
the table below excludes PPP1 and PPP2 loans and their associated
fees and costs for the quarter ended September 30, 2022:
Quarter Ended September 30,
2022
For the Nine Months Ended
September 30, 2022
(dollars in thousands)
Average Outstanding
Balance
Interest Earned
Average Yield
Average Outstanding
Balance
Interest Earned
Average Yield
Total loans
$
2,191,411
$
27,455
4.97
%
$
2,066,529
$
74,314
4.81
%
Adjustments:
PPP1 loans average balance and net
fees(1)
(160
)
(1
)
2.48
(376
)
(6
)
2.13
PPP2 loans average balance and net
fees(2)
(999
)
(56
)
22.24
(15,205
)
(1,270
)
11.17
Total PPP loans(3)
$
(1,159
)
$
(57
)
19.51
%
$
(15,581
)
$
(1,276
)
10.95
%
Total loans, excluding PPP†
$
2,190,252
$
27,398
4.96
%
$
2,050,948
$
73,038
4.76
%
Total interest-earning assets
3,149,502
32,476
4.09
3,044,880
87,489
3.84
Total interest-earning assets, net of PPP
effects†
$
3,148,343
$
32,419
4.09
%
$
3,029,299
$
86,213
3.81
%
Net interest income
$
28,297
$
79,471
Net interest margin(4)
3.56
%
3.49
%
Net interest margin, FTE(5)
3.59
3.53
Net interest income, net of PPP
effects†
28,240
78,195
Net interest margin, net of PPP
effects†(6)
3.56
3.45
Net interest margin, FTE, net of PPP
effects†(7)
3.59
3.49
Efficiency ratio(8)
59.35
60.32
Efficiency ratio, net of PPP
effects†(9)
59.45
61.11
† Non-GAAP financial metric. Calculations
of this metric and reconciliations to GAAP are included in the
schedules accompanying this release.
(1) Interest earned on PPP1 loans consists
of interest income of $1,000 and $3,000, and net origination fees
recognized in earnings of $0 and $3,000 for the quarter and nine
months ended September 30, 2022, respectively.
(2) Interest earned on PPP2 loans consists
of interest income of $3,000 and $111,000, and net origination fees
recognized in earnings of $53,000 and $1.2 million for the three
and nine months ended September 30, 2022, respectively.
(3) Interest earned consists of interest
income of $4,000 and $114,000, and net origination fees recognized
in earnings of $53,000 and $1.2 million for the three and nine
months ended September 30, 2022, respectively.
(4) Net interest margin is equal to net
interest income 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 adjusted for
nontaxable income divided by average interest-earning assets,
annualized, using a marginal tax rate of 21%.
(6) Net interest margin is equal to net
interest income, net of PPP effects, divided by average
interest-earning assets, excluding average PPP loans, annualized.
Taxes are not a part of this calculation.
(7) 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, excluding average PPP loans, annualized,
using a marginal tax rate of 21%.
(8) 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.
(9) 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.
During the third quarter of 2022, we recorded a $600,000
provision for credit losses. The provision was recorded primarily
due to continued organic loan growth during the quarter. During the
first quarter of 2022, we fully unwound the COVID-specific
qualitative factor that we implemented at the onset of the pandemic
in early 2020 and adjusted our standard qualitative factors in the
second quarter of 2022 to capture current macro-economic conditions
that we believe are more similar to the environment prior to the
COVID-19 pandemic (i.e. near the end of a long up-cycle with a
downturn expected) and consistent with our day-one CECL
methodology. Minimal updates were made to our qualitative factors,
including forecasted conditions, during the third quarter of 2022,
however increases to certain qualitative factors are anticipated in
future periods to estimate possible impacts of an economic
recession on our loan portfolio. As of September 30, 2022, our
allowance for credit losses as a percentage of total loans was
1.29%.
Noninterest income decreased $646,000, or 10.0%, in the third
quarter of 2022 to $5.8 million, compared to $6.4 million for the
third quarter of 2021. The decrease from the same quarter in 2021
was due primarily to a decrease in the gain on sale of loans of
$1.4 million, or 80.8%, along with a $70,000, or 48.3%, decrease in
mortgage fee income and a $137,000, or 69.9%, decrease in warehouse
lending fees. These decreases were partially offset by an increase
in other noninterest income of $716,000, or 95.7%, an increase in
service charges of $143,000, or 14.3%, and an increase in merchant
and debit card fees of $118,000, or 7.3%, compared to the same
quarter in the prior year. The increases in service charges and
merchant and debit card fees, as well as the decreases in gain on
sale of loans, mortgage fee income and warehouse lending fees were
primarily volume driven. The increase in other noninterest income
was due to a gain on sale of an airplane asset for $894,000 during
the third quarter of 2022.
Noninterest expense increased $950,000, or 4.9%, in the third
quarter of 2022 to $20.2 million, compared to the third quarter of
2021. The increase in noninterest expense in the third quarter of
2022 was driven primarily by a $853,000, or 7.8%, increase in
employee compensation and benefits due to increased salaries,
higher insurance expense accruals due to increased claims
experience and increased bonus accruals due to higher net income.
Software and technology expense increased $151,000, or 12.0%,
compared to the third quarter of 2021, due to additional technology
investments and an increase in the cost of our core processing
software resulting from a new asset tier threshold. The increases
were partially offset by a $117,000, or 23.6%, decrease in
advertising and promotion expense and an $87,000, or 34.4%,
decrease in amortization expense from the prior year quarter. Other
non-interest expense during the third quarter of 2022 included a
write-down of $487,000 for an SBA receivable that was recorded
during the work-out of two previous loan relationships that were
acquired as part of the Westbound Bank acquisition in 2018. These
loans were charged-off or partially paid off and are now recorded
as a receivable for the 75% guaranteed amount of $3.0 million.
During our review process to apply for reimbursement of these
guaranteed amounts from the SBA, we self-identified $487,000 that
was disbursed to the borrowers by Westbound but was not expressly
authorized by the SBA during underwriting. Therefore, we recorded a
write-down of $487,000 in the event the SBA determines not to honor
the guaranteed amount for these loan funds.
Noninterest income in the third quarter of 2022 decreased by
$278,000, or 4.6%, from $6.1 million in the second quarter of 2022.
The decrease is due mostly to a lower gain on sale of loans of
$544,000, or 61.7%, due to a 21 unit, or $317,000, decrease in
mortgage loans sold quarter-over-quarter and no SBA loans sold
during the third quarter of 2022 versus $227,000 sold in the prior
quarter. The remainder of the decrease was due to a decrease in
merchant and debit card fees of $323,000, or 15.7%, because of a
$274,000 annual bonus received in the second quarter that was not
present in the current quarter. The decreases were partially offset
by an increase in other noninterest income of $654,000, or 80.7%,
resulting primarily from a gain on sale of an airplane asset for
$894,000 during the third quarter of 2022.
Noninterest expense increased $543,000, or 2.8%, in the third
quarter of 2022, from $19.7 million for the quarter ended June 30,
2022. The increase was primarily due to an increase in other
noninterest expense of $549,000, or 46.2%, and an increase in
software and technology expense of $70,000, or 5.2%, during the
third quarter of 2022. The increase in other noninterest expense
resulted primarily from a $487,000 write-down of an SBA receivable
balance during the third quarter of 2022, which is described in
more detail above. These increases were partially offset by a
decrease in legal and professional fees of $270,000, or 34.9%,
during the third quarter of 2022.
The Company’s efficiency ratio in the third quarter of 2022 was
59.35%, compared to 59.80% in the prior year quarter and 64.25% in
the second quarter of 2022. Adjusted to remove the effects of
PPP-related transactions, the Company’s efficiency ratio† in
the third quarter of 2022 was 59.45%, compared to 66.47% in the
prior year quarter and 60.60% in the second quarter of 2022.
† 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 $3.39 billion at
September 30, 2022, compared to $3.28 billion at June 30, 2022 and
$2.97 billion at September 30, 2021.
Gross loans increased $127.7 million, or 6.0%, to $2.27 billion
at September 30, 2022, compared to loans of $2.14 billion at June
30, 2022. The increase in gross loans from the second quarter of
2022 to the third quarter of 2022 is primarily due to increased
loan originations and advances. Excluding PPP and warehouse lending
loans, gross loans increased $144.1 million, or 6.8%, from June 30,
2022.
Gross loans increased $295.2 million, or 15.0%, from $1.97
billion at September 30, 2021. The increase in gross loans during
the third quarter of 2022 compared to the third quarter of 2021
resulted from organic loan growth and was partially offset by a
$74.7 million reduction in PPP loan balances during the period.
Excluding PPP and warehouse lending loans, gross loans increased
$430.8 million, or 23.6%, from September 30, 2021.
Total deposits increased by $10.9 million, or 0.4%, to $2.79
billion at September 30, 2022, compared to $2.78 billion at June
30, 2022, and increased $227.4 million, or 8.9%, from $2.56 billion
at September 30, 2021. The increase in deposits during the current
quarter resulted primarily from an increase in noninterest-bearing
deposits of $35.4 million, or 3.2%, and $168.3 million, or 17.3%
compared to the prior quarter and prior-year quarter,
respectively.
Nonperforming assets as a percentage of total loans were 0.41%
at September 30, 2022, compared to 0.46% at June 30, 2022 and 0.16%
at September 30, 2021. The Bank's nonperforming assets consist
primarily of nonaccrual loans. Four loans were added to nonaccrual
status in the second quarter of 2022 and 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 $6.7 million as of September 30, 2022.
These loans, collateralized by two hotels, were identified as
problem assets prior to COVID-19 but obtained government stimulus
and other relief which allowed the two related borrowers to remain
current through early 2022. Management continues to work toward a
satisfactory resolution for these four loans, however, in the event
of foreclosure, a significant loss is not expected due to estimated
current collateral values.
Total equity was $288.7 million as of September 30, 2022,
compared to $282.8 million at June 30, 2022 and $297.4 million at
September 30, 2021. The increase from the previous quarter resulted
primarily from net income of $10.9 million during the period offset
by the payment of dividends of $2.6 million and a decrease in
accumulated other comprehensive income of $2.4 million during the
third quarter of 2022 resulting from fluctuations in the fair
market value of securities. Although the unrealized losses in
accumulated other comprehensive income during the quarter do not
impact regulatory capital ratios, they did result in a slight
decrease in the tangible common equity† ratio from 7.64% as
of June 30, 2022 to 7.57% as of September 30, 2022. Tangible common
equity† decreased $8.9 million, or 3.4%, during the third
quarter of 2022 compared to the same quarter of the prior year.
In September 2021, we announced the formation of a partnership
with CaliberCos, Inc., a vertically integrated alternative asset
manager and fund sponsor, in an effort to drive investments that
will revitalize communities across Texas through real estate
developments. We recorded this investment by our Bank subsidiary
and the noncontrolling interest during the first quarter of 2022.
Further details of this partnership can be found in our Form 8-K
filed with the Securities and Exchange Commission on September 7,
2021.
Nonperforming assets as a percentage of total assets were 0.28%
at September 30, 2022, compared to 0.30% at June 30, 2022, and
0.11% at September 30, 2021.
As of
2022
2021
(dollars in thousands)
September 30
June 30
March 31
December 31
September 30
ASSETS
Cash and due from banks
$
48,010
$
56,545
$
58,788
$
42,979
$
34,741
Federal funds sold
71,875
2,425
139,300
431,975
346,500
Interest-bearing deposits
4,284
12,053
24,003
24,651
27,634
Total cash and cash equivalents
124,169
71,023
222,091
499,605
408,875
Securities available for sale
197,944
196,095
306,704
342,206
269,070
Securities held to maturity
633,386
713,390
494,289
184,263
173,676
Loans held for sale
2,749
2,770
1,166
4,129
1,903
Loans, net
2,234,782
2,107,658
1,983,449
1,876,076
1,938,268
Accrued interest receivable
10,111
10,144
8,961
8,901
7,673
Premises and equipment, net
54,212
54,437
54,316
53,470
53,834
Other real estate owned
5
—
—
—
40
Cash surrender value of life insurance
38,194
37,979
37,352
37,141
36,582
Core deposit intangible, net
1,973
2,086
2,199
2,313
2,426
Goodwill
32,160
32,160
32,160
32,160
32,160
Other assets
60,581
53,171
47,142
45,806
43,761
Total assets
$
3,390,266
$
3,280,913
$
3,189,829
$
3,086,070
$
2,968,268
LIABILITIES AND EQUITY
Deposits
Noninterest-bearing
$
1,141,184
$
1,105,756
$
1,065,789
$
1,014,518
$
972,854
Interest-bearing
1,649,326
1,673,865
1,731,621
1,656,309
1,590,217
Total deposits
2,790,510
2,779,621
2,797,410
2,670,827
2,563,071
Securities sold under agreements to
repurchase
7,592
7,871
11,090
14,151
11,195
Accrued interest and other liabilities
27,384
28,033
27,803
26,568
26,284
Line of credit
—
—
—
5,000
3,000
Federal Home Loan Bank advances
225,000
131,500
7,500
47,500
47,500
Subordinated debentures
51,119
51,053
54,146
19,810
19,810
Total liabilities
3,101,605
2,998,078
2,897,949
2,783,856
2,670,860
Equity attributable to Guaranty
Bancshares, Inc.
288,084
282,255
291,282
302,214
297,408
Noncontrolling interest
577
580
598
—
—
Total equity
288,661
282,835
291,880
302,214
297,408
Total liabilities and equity
$
3,390,266
$
3,280,913
$
3,189,829
$
3,086,070
$
2,968,268
† Non-GAAP financial metric.
Calculations of this metric and reconciliations to GAAP are
included in the schedules accompanying this release.
Quarter Ended
2022
2021
(dollars in thousands, except per share
data)
September 30
June 30
March 31
December 31
September 30
STATEMENTS OF EARNINGS
Interest income
$
32,476
$
29,120
$
25,893
$
25,518
$
25,235
Interest expense
4,179
2,269
1,570
1,498
1,665
Net interest income
28,297
26,851
24,323
24,020
23,570
Provision for credit losses
600
—
(1,250
)
—
(700
)
Net interest income after provision for
credit losses
27,697
26,851
25,573
24,020
24,270
Noninterest income
5,803
6,081
6,479
6,038
6,449
Noninterest expense
20,237
19,694
19,079
18,976
19,287
Income before income taxes
13,263
13,238
12,973
11,082
11,432
Income tax provision
2,363
2,472
2,235
1,923
2,179
Net earnings
$
10,900
$
10,766
$
10,738
$
9,159
$
9,253
Net loss attributable to noncontrolling
interest
3
18
—
—
—
Net earnings attributable to Guaranty
Bancshares, Inc.
$
10,903
$
10,784
$
10,738
$
9,159
$
9,253
PER COMMON SHARE DATA*
Earnings per common share, basic
$
0.92
$
0.90
$
0.89
$
0.76
$
0.77
Earnings per common share, diluted
0.91
0.89
0.88
0.75
0.76
Cash dividends per common share
0.22
0.22
0.22
0.20
0.20
Book value per common share - end of
quarter
24.18
23.69
24.14
24.93
24.62
Tangible book value per common share - end
of quarter(1)
21.31
20.82
21.29
22.09
21.75
Common shares outstanding - end of
quarter(4)
11,915,372
11,912,249
12,066,480
12,122,717
12,081,477
Weighted-average common shares
outstanding, basic
11,907,233
11,968,227
12,109,074
12,097,100
12,067,769
Weighted-average common shares
outstanding, diluted
12,032,391
12,098,983
12,260,945
12,263,252
12,211,389
PERFORMANCE RATIOS
Return on average assets (annualized)
1.30
%
1.35
%
1.38
%
1.20
%
1.24
%
Return on average equity (annualized)
14.87
14.85
14.44
12.06
12.44
Net interest margin, fully taxable
equivalent (annualized)(2)
3.59
3.61
3.37
3.39
3.40
Efficiency ratio(3)
59.35
59.80
61.94
63.13
64.25
(1) See Reconciliation of non-GAAP
Financial Measures table.
(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.
(4) Excludes the dilutive effect, if any,
of shares of common stock issuable upon exercise of outstanding
stock options.
As of
2022
2021
(dollars in thousands)
September 30
June 30
March 31
December 31
September 30
LOAN PORTFOLIO COMPOSITION
Commercial and industrial
$
278,091
$
268,812
$
270,074
$
280,569
$
308,647
Real estate:
Construction and development
391,564
350,024
318,035
307,797
309,746
Commercial real estate
821,941
749,603
674,558
622,842
633,353
Farmland
179,402
166,309
186,982
145,501
135,413
1-4 family residential
467,983
450,929
430,755
410,673
403,403
Multi-family residential
43,025
55,985
42,021
30,971
40,810
Consumer
58,835
56,433
52,670
50,965
52,992
Agricultural
13,917
14,502
14,403
14,639
14,199
Warehouse lending
10,938
25,344
24,260
43,720
71,823
Overdrafts
369
435
303
363
495
Total loans(1)(2)
$
2,266,065
$
2,138,376
$
2,014,061
$
1,908,040
$
1,970,881
Quarter Ended
2022
2021
(dollars in thousands)
September 30
June 30
March 31
December 31
September 30
ALLOWANCE FOR CREDIT LOSSES
Balance at beginning of period
$
28,997
$
29,096
$
30,433
$
30,621
$
31,548
Loans charged-off
(418
)
(125
)
(203
)
(239
)
(244
)
Recoveries
56
26
116
51
17
Provision for credit loss expense
600
—
(1,250
)
—
(700
)
Balance at end of period
$
29,235
$
28,997
$
29,096
$
30,433
$
30,621
Allowance for credit losses / period-end
loans
1.29
%
1.36
%
1.44
%
1.59
%
1.55
%
Allowance for credit losses /
nonperforming loans
313.3
294.4
1,084.9
1,075.0
976.7
Net charge-offs / average loans
(annualized)
0.07
0.02
0.02
0.04
0.05
NONPERFORMING ASSETS
Nonaccrual loans(3)
$
9,330
$
9,848
$
2,682
$
2,831
$
3,135
Other real estate owned
5
—
—
—
40
Repossessed assets owned
—
27
7
14
63
Total nonperforming assets
$
9,335
$
9,875
$
2,689
$
2,845
$
3,238
Nonperforming assets as a percentage
of:
Total loans(1)(2)
0.41
%
0.46
%
0.13
%
0.15
%
0.16
%
Total loans, excluding PPP(1)(2)
0.41
0.46
0.13
0.15
0.17
Total assets
0.28
0.30
0.08
0.09
0.11
TDR loans - nonaccrual
$
6,753
$
6,764
$
98
$
103
$
84
TDR loans - accruing
1,895
2,652
9,418
9,466
9,522
(1) Excludes outstanding balances of loans
held for sale of $2.7 million, $2.8 million, $1.2 million, $4.1
million, and $1.9 million as of September 30, June 30 and March 31,
2022 and December 31, and September 30, 2021, respectively.
(2) Excludes deferred loan fees of $2.0
million, $1.7 million, $1.5 million, $1.5 million, and $2.0 million
as of September 30, June 30 and March 31, 2022 and December 31, and
September 30, 2021, respectively.
(3) TDR loans - nonaccrual are included in
nonaccrual loans, which are a component of nonperforming loans.
Quarter Ended
2022
2021
(dollars in thousands)
September 30
June 30
March 31
December 31
September 30
NONINTEREST INCOME
Service charges
$
1,146
$
1,070
$
976
$
1,085
$
1,003
Net realized gain on sale of loans
338
882
905
1,127
1,759
Fiduciary and custodial income
576
638
642
615
599
Bank-owned life insurance income
215
207
211
207
215
Merchant and debit card fees
1,738
2,061
1,611
1,669
1,620
Loan processing fee income
192
232
187
188
164
Warehouse lending fees
59
79
116
164
196
Mortgage fee income
75
102
131
133
145
Other noninterest income
1,464
810
1,700
850
748
Total noninterest income
$
5,803
$
6,081
$
6,479
$
6,038
$
6,449
NONINTEREST EXPENSE
Employee compensation and benefits
$
11,851
$
11,730
$
11,532
$
11,200
$
10,998
Occupancy expenses
2,800
2,848
2,711
2,686
2,738
Legal and professional fees
503
773
770
604
644
Software and technology
1,409
1,339
1,209
1,167
1,258
Amortization
166
178
219
222
253
Director and committee fees
213
219
205
204
197
Advertising and promotions
378
320
407
470
495
ATM and debit card expense
723
674
578
643
646
Telecommunication expense
184
187
186
196
197
FDIC insurance assessment fees
272
237
233
300
214
Other noninterest expense
1,738
1,189
1,029
1,284
1,647
Total noninterest expense
$
20,237
$
19,694
$
19,079
$
18,976
$
19,287
Quarter Ended September
30,
2022
2021
(dollars in thousands)
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
ASSETS
Interest-earning assets:
Total loans(1)
$
2,191,411
$
27,455
4.97
%
$
1,921,005
$
22,605
4.67
%
Securities available for sale
196,875
1,239
2.50
320,476
1,199
1.48
Securities held to maturity
707,601
3,416
1.92
116,527
1,054
3.59
Nonmarketable equity securities
21,382
172
3.19
10,040
268
10.59
Interest-bearing deposits in other
banks
32,233
194
2.39
412,033
109
0.10
Total interest-earning assets
3,149,502
32,476
4.09
2,780,081
25,235
3.60
Allowance for credit losses
(28,777
)
(31,133
)
Noninterest-earning assets
216,623
204,233
Total assets
$
3,337,348
$
2,953,181
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing deposits
$
1,650,314
$
2,455
0.59
%
$
1,599,012
$
1,348
0.33
%
Advances from FHLB and fed funds
purchased
202,832
1,211
2.37
48,609
107
0.87
Line of credit
—
—
—
2,641
25
3.76
Subordinated debt
51,087
509
3.95
19,810
182
3.64
Securities sold under agreements to
repurchase
6,844
4
0.23
12,171
3
0.10
Total interest-bearing liabilities
1,911,077
4,179
0.87
1,682,243
1,665
0.39
Noninterest-bearing liabilities:
Noninterest-bearing deposits
1,109,205
950,574
Accrued interest and other liabilities
26,260
25,288
Total noninterest-bearing liabilities
1,135,465
975,862
Equity
290,806
295,076
Total liabilities and equity
$
3,337,348
$
2,953,181
Net interest rate spread(2)
3.22
%
3.21
%
Net interest income
$
28,297
$
23,570
Net interest margin(3)
3.56
%
3.36
%
Net interest margin, fully taxable
equivalent(4)
3.59
%
3.40
%
(1) Includes average outstanding balances
of loans held for sale of $2.1 million and $3.7 million for the
quarter ended September 30, 2022 and 2021, 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%.
Nine Months Ended September
30,
2022
2021
(dollars in thousands)
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
ASSETS
Interest-earning assets:
Total loans(1)
$
2,066,529
$
74,314
4.81
%
$
1,906,989
$
69,664
4.88
%
Securities available for sale
316,386
4,330
1.83
372,707
5,481
1.97
Securities held to maturity
499,092
7,567
2.03
39,269
1,054
3.59
Nonmarketable equity securities
16,937
869
6.86
10,042
612
8.15
Interest-bearing deposits in other
banks
145,936
409
0.37
391,096
221
0.08
Total interest-earning assets
3,044,880
87,489
3.84
2,720,103
77,032
3.79
Allowance for credit losses
(29,341
)
(32,338
)
Noninterest-earning assets
216,140
202,117
Total assets
$
3,231,679
$
2,889,882
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing deposits
$
1,684,725
$
5,320
0.42
%
$
1,594,219
$
4,444
0.37
%
Advances from FHLB and fed funds
purchased
96,462
1,447
2.01
49,581
308
0.83
Line of credit
—
34
—
6,506
174
3.58
Subordinated debt
46,024
1,208
3.51
19,810
558
3.77
Securities sold under agreements to
repurchase
8,920
9
0.13
16,044
10
0.08
Total interest-bearing liabilities
1,836,131
8,018
0.58
1,686,160
5,494
0.44
Noninterest-bearing liabilities:
Noninterest-bearing deposits
1,075,941
892,260
Accrued interest and other liabilities
25,212
25,234
Total noninterest-bearing liabilities
1,101,153
917,494
Equity
294,395
286,228
Total liabilities and equity
$
3,231,679
$
2,889,882
Net interest rate spread(2)
3.26
%
3.35
%
Net interest income
$
79,471
$
71,538
Net interest margin(3)
3.49
%
3.52
%
Net interest margin, fully taxable
equivalent(4)
3.53
%
3.56
%
(1) Includes average outstanding balances
of loans held for sale of $2.6 million and $3.7 million for the
nine months ended September 30, 2022 and 2021, 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%.
NON-GAAP RECONCILING TABLES
Tangible Book Value per Common
Share
As of
2022
2021
(dollars in thousands, except per share
data)
September 30
June 30
March 31
December 31
September 30
Equity attributable to Guaranty
Bancshares, Inc.
$
288,084
$
282,255
$
291,880
$
302,214
$
297,408
Adjustments:
Goodwill
(32,160
)
(32,160
)
(32,160
)
(32,160
)
(32,160
)
Core deposit intangible, net
(1,973
)
(2,086
)
(2,199
)
(2,313
)
(2,426
)
Total tangible common equity attributable
to Guaranty Bancshares, Inc.
$
253,951
$
248,009
$
257,521
$
267,741
$
262,822
Common shares outstanding(1)
11,915,372
11,912,249
12,066,480
12,122,717
12,081,477
Book value per common share
$
24.18
$
23.69
$
24.14
$
24.93
$
24.62
Tangible book value per common
share(1)
21.31
20.82
21.34
22.09
21.75
(1) Excludes the dilutive effect, if any,
of shares of common stock issuable upon exercise of outstanding
stock options.
Tangible Common Equity to Tangible
Assets
As of
2022
2021
(dollars in thousands, except per share
data)
September 30
June 30
March 31
December 31
September 30
Total assets
$
3,390,266
$
3,280,913
$
3,189,829
$
3,086,070
$
2,968,268
Adjustments:
Goodwill
(32,160
)
(32,160
)
(32,160
)
(32,160
)
(32,160
)
Core deposit intangible, net
(1,973
)
(2,086
)
(2,199
)
(2,313
)
(2,426
)
Total tangible assets
$
3,356,133
$
3,246,667
$
3,155,470
$
3,051,597
$
2,933,682
Total tangible common equity attributable
to Guaranty Bancshares, Inc.
253,951
248,009
257,521
267,741
262,822
Tangible common equity to tangible
assets
7.57
%
7.64
%
8.16
%
8.77
%
8.96
%
Net Core Earnings and Net Core Earnings
per Common Share
Quarter Ended
2022
2021
(dollars in thousands, except per share
data)
September 30
June 30
March 31
December 31
September 30
Net earnings attributable to Guaranty
Bancshares, Inc.
$
10,903
$
10,766
$
10,738
$
9,159
$
9,253
Adjustments:
Provision for credit losses
600
—
(1,250
)
—
(700
)
Income tax provision
2,363
2,472
2,235
1,923
2,179
PPP loans, including fees
(57
)
(436
)
(783
)
(958
)
(1,005
)
Net core earnings attributable to Guaranty
Bancshares, Inc.
$
13,809
$
12,802
$
10,940
$
10,124
$
9,727
Weighted-average common shares
outstanding, basic
11,907,233
11,968,227
12,109,074
12,097,100
12,067,769
Earnings per common share, basic
$
0.92
$
0.90
$
0.89
$
0.76
$
0.77
Net core earnings per common share,
basic
1.16
1.07
0.90
0.84
0.81
NON-GAAP RECONCILING TABLES
Net Core Earnings to Average Assets, as
Adjusted, and Average Equity
Quarter Ended
2022
2021
(dollars in thousands)
September 30
June 30
March 31
December 31
September 30
Net core earnings attributable to Guaranty
Bancshares, Inc.
$
13,809
$
12,820
$
10,940
$
10,124
$
9,727
Total average assets
$
3,337,348
$
3,209,440
$
3,146,339
$
3,021,079
$
2,953,181
Adjustments:
PPP loan average balance
(1,159
)
(8,885
)
(36,720
)
(61,062
)
(107,931
)
Total average assets, adjusted
$
3,336,189
$
3,200,555
$
3,109,619
$
2,960,017
$
2,845,250
Net core earnings attributable to Guaranty
Bancshares, Inc. to average assets, as adjusted (annualized)
1.64
%
1.61
%
1.43
%
1.36
%
1.36
%
Total average equity
$
290,806
$
291,312
$
301,579
$
301,398
$
295,076
Net core earnings attributable to Guaranty
Bancshares, Inc. to average equity (annualized)
18.84
%
17.65
%
14.71
%
13.33
%
13.08
%
Total Nonperforming Assets to Total
Loans, Excluding PPP
Quarter Ended
2022
2021
(dollars in thousands)
September 30
June 30
March 31
December 31
September 30
Total loans(1)(2)
$
2,266,065
$
2,138,376
$
2,014,061
$
1,908,040
$
1,970,881
Adjustments:
PPP loans balance
(576
)
(2,605
)
(19,302
)
(50,611
)
(75,304
)
Total loans, excluding PPP(1)(2)
$
2,265,489
$
2,135,771
$
1,994,759
$
1,857,429
$
1,895,577
Warehouse loans
(10,938
)
(25,344
)
(24,260
)
(43,720
)
(71,823
)
Total loans, excluding warehouse and
PPP(1)(2)
$
2,254,551
$
2,110,427
$
1,970,499
$
1,813,709
$
1,823,754
Total nonperforming assets
$
9,335
$
9,875
$
2,689
$
2,845
$
3,238
Nonperforming assets as a percentage
of:
Total loans(1)(2)
0.41
%
0.46
%
0.13
%
0.15
%
0.16
%
Total loans, excluding PPP(1)(2)
0.41
0.46
0.13
0.15
0.17
Total loans, excluding PPP and
warehouse(1)(2)
0.41
0.47
0.14
0.16
0.18
(1) Excludes outstanding balances of loans
held for sale of $2.7 million, $2.8 million, $1.2 million, $4.1
million, and $1.9 million as of September 30, June 30 and March 31,
2022 and December 31, and September 30, 2021, respectively.
(2) Excludes deferred loan fees of $2.0
million, $1.7 million, $1.5 million, $1.5 million, and $2.0 million
as of September 30, June 30 and March 31, 2022 and December 31, and
September 30, 2021, respectively.
Total Interest-Earning Assets, Net of
PPP Effects
Quarter Ended September 30,
2022
Quarter Ended September 30,
2021
(dollars in thousands)
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
Total interest-earning assets
$
3,149,502
$
32,476
4.09
%
$
2,780,081
$
25,235
3.60
%
Total loans
2,191,411
27,455
4.97
1,921,005
22,605
4.67
Adjustments:
PPP loan average balance and net
fees(1)
(1,159
)
(57
)
19.51
(107,931
)
(1,005
)
3.69
Total loans, net of PPP effects
2,190,252
27,398
4.96
1,813,074
21,600
4.73
Total interest-earning assets, net of PPP
effects
$
3,148,343
$
32,419
4.09
%
$
2,672,150
$
24,230
3.60
%
(1) Interest earned consists of interest
income of $4,000 and $270,000, and net origination fees recognized
in earnings of $53,000 and $0.7 million for the quarter ended
September 30, 2022 and 2021, respectively.
NON-GAAP RECONCILING TABLES
Quarter Ended June 30,
2022
(dollars in thousands)
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
Total interest-earning assets
$
2,963,030
$
25,893
3.51
%
Total loans
2,068,379
24,587
4.77
Adjustments:
PPP loan average balance and net
fees(1)
(8,885
)
(436
)
19.68
Total loans, net of PPP effects
2,059,494
24,151
4.70
Total interest-earning assets, net of PPP
effects
$
2,954,145
$
25,457
3.46
%
(1) Interest earned consists of interest
income of $21,000 and net origination fees recognized in earnings
of $415,000 for the quarter ended June 30, 2022.
Net Interest Income and Net Interest
Margin, Net of PPP Effects
(dollars in thousands)
Quarter Ended September 30,
2022
Quarter Ended June 30,
2022
Quarter Ended September 30,
2021
Net interest income
$
28,297
$
26,851
$
23,570
Adjustments:
PPP-related interest income
(4
)
(21
)
(270
)
PPP-related net origination fees
(53
)
(415
)
(735
)
Net interest income, net of PPP
effects
$
28,240
$
26,415
$
22,565
Total average interest-earning assets
$
3,149,502
$
3,020,390
$
2,780,081
Total average interest-earning assets, net
of PPP effects
3,148,343
3,011,505
2,672,150
Net interest margin(1)
3.56
%
3.57
%
3.36
%
Net interest margin, net of PPP
effects(2)
3.56
3.52
3.35
Net interest income
$
28,297
$
26,851
$
23,570
Interest income tax adjustments
215
301
278
Net interest income, fully taxable
equivalent ("FTE")
$
28,512
$
27,152
$
23,848
Net interest income, FTE, net of PPP
effects
28,455
26,716
22,843
Net interest margin, FTE(3)
3.59
%
3.61
%
3.40
%
Net interest margin, FTE, net of PPP
effects(4)
3.59
3.56
3.39
(1) Net interest margin is equal to net
interest income divided by average interest-earning assets,
annualized.
(2) Net interest margin is equal to net
interest income, net of PPP effects, divided by average
interest-earning assets, excluding average PPP loans, 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 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, excluding average PPP loans, annualized,
using a marginal tax rate of 21%.
NON-GAAP RECONCILING TABLES
Efficiency Ratio, Net of PPP Effects
(dollars in thousands)
Quarter Ended September 30,
2022
Quarter Ended June 30,
2022
Quarter Ended September 30,
2021
Total noninterest expense
$
20,237
$
19,694
$
19,287
Adjustments:
PPP-related deferred costs
—
—
—
Total noninterest expense, net of PPP
effects
$
20,237
$
19,694
$
19,287
Net interest income
28,297
26,851
23,570
Net interest income, net of PPP
effects
28,240
26,415
22,565
Total noninterest income
$
5,803
$
6,081
$
6,449
Securities gains (losses)
—
—
—
Noninterest income, as adjusted
$
5,803
$
6,081
$
6,449
Efficiency ratio(1)
59.35
%
59.80
%
64.25
%
Efficiency ratio, net of PPP
effects(2)
59.45
60.60
66.47
(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.
Loan Yield, Net of PPP Effects
Quarter Ended September 30,
2022
Quarter Ended June 30,
2022
(dollars in thousands)
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
Total loans
$
2,191,411
$
27,455
4.97
%
$
2,068,379
$
24,587
4.77
%
Adjustments:
PPP loans average balance and net fees
(1,159
)
(57
)
19.51
(8,885
)
(436
)
19.68
Total loans, net of PPP effects
$
2,190,252
$
27,398
4.96
%
$
2,059,494
$
24,151
4.70
%
Effect of removing PPP loans on loan
yield
(0.01
%)
(0.07
%)
Quarter Ended September 30,
2022
Quarter Ended September 30,
2021
(dollars in thousands)
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
Average Outstanding
Balance
Interest Earned/ Interest
Paid
Average Yield/ Rate
Total loans
$
2,191,411
$
27,455
4.97
%
$
1,921,005
$
22,605
4.67
%
Adjustments:
PPP loans average balance and net fees
(1,159
)
(57
)
19.51
(107,931
)
(1,005
)
3.69
Total loans, net of PPP effects
$
2,190,252
$
27,398
4.96
%
$
1,813,074
$
21,600
4.73
%
Effect of removing PPP loans on loan
yield
(0.01
%)
0.06
%
ACL to Total Loans, Excluding
PPP
(dollars in thousands)
As of September 30,
2022
As of June 30, 2022
As of September 30,
2021
Total loans
$
2,266,065
$
2,138,376
$
1,970,881
Adjustments:
PPP loans
(576
)
(2,605
)
(75,304
)
Total loans, excluding PPP
$
2,265,489
$
2,135,771
$
1,895,577
Allowance for credit losses
$
29,235
$
28,997
$
30,621
Allowance for credit losses / period-end
loans
1.29
%
1.36
%
1.55
%
Allowance for credit losses / period-end
loans. excluding PPP
1.29
1.36
1.62
NON-GAAP RECONCILING TABLES
Cost of Total Deposits
(dollars in thousands)
Quarter Ended September 30,
2022
Quarter Ended June 30,
2022
Quarter Ended September 30,
2021
Total average interest-bearing
deposits
$
1,650,314
$
1,694,363
$
1,594,219
Adjustments:
Noninterest-bearing deposits
1,109,205
1,090,288
892,260
Total average deposits
$
2,759,519
$
2,784,651
$
2,486,479
Total deposit-related interest expense
$
2,455
$
1,623
$
4,444
Average cost of interest-bearing
deposits
0.59
%
0.38
%
0.37
%
Average cost of total deposits (cost of
funds)
0.35
0.23
0.24
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 third quarter
2022 financial results on Monday, October 17, 2022 at 10:00 am
Central Daylight Time. The conference call will be hosted by Ty
Abston, Chairman and CEO, Cappy Payne, SEVP and Company CFO, and
Shalene Jacobson, EVP and Bank CFO. All conference attendees must
register before the call at www.gnty.com/earningscall. The
conference materials will be available by accessing the Investor
Relations page on our website, www.gnty.com. A recording of the
conference call will be available by 1:00 pm Central Daylight Time
the day of the call and remain available through October 31, 2022
on our Investor Relations webpage.
About Guaranty Bancshares, Inc.
Guaranty Bancshares, Inc. is the parent company for Guaranty
Bank & Trust, N.A. Guaranty Bank & Trust has 32 banking
locations across 26 Texas communities located within the East
Texas, Dallas/Fort Worth, Houston and Central Texas regions of the
state. As of September 30, 2022, Guaranty Bancshares, Inc. had
total assets of $3.39 billion, total loans of $2.27 billion and
total deposits of $2.79 billion. Visit www.gnty.com for more
information.
Cautionary Statement Regarding Forward-Looking
Information
This communication contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements reflect our current views
with respect to, among other things, future events and our results
of operations, financial condition and financial performance. These
statements are often, but not always, made through the use of words
or phrases such as “may,” “should,” “could,” “predict,”
“potential,” “believe,” “will likely result,” “expect,” “continue,”
“will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,”
“projection,” “would” and “outlook,” or the negative version of
those words or other comparable words of a future or
forward-looking nature. These forward-looking statements are not
historical facts, and are based on current expectations, estimates
and projections about our industry, management’s beliefs and
certain assumptions made by management, many of which, by their
nature, are inherently uncertain and beyond our control. Actual
results may 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 operation of financial
markets; global supply chain disruption; 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; 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/20221017005209/en/
Cappy Payne Senior Executive Vice President and Chief Financial
Officer Guaranty Bancshares, Inc. (888) 572-9881
investors@gnty.com
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