Press Release

CORRECTING and REPLACING Guaranty Bancshares, Inc. Reports Fourth Quarter and Year-End 2019 Financial Results

Company Release - 1/21/2020 8:30 AM ET

ADDISON, Texas--(BUSINESS WIRE)-- Please replace the release with the following corrected version due to multiple revisions to the figures for fourth quarter 2019.

The corrected release reads:

GUARANTY BANCSHARES, INC. REPORTS FOURTH QUARTER AND YEAR-END 2019 FINANCIAL RESULTS

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, 2019. The company's net income available to common shareholders was $7.4 million, or $0.64 per basic share, for the quarter ended December 31, 2019, compared to $7.5 million, or $0.65 per basic share, for the quarter ended September 30, 2019 and $6.5 million, or $0.55 per basic share, for the quarter ended December 31, 2018. In addition to increased net income, earnings per basic share during the fourth quarter of 2019 compared to the same period in 2018 were impacted by our repurchase of 352,036 shares of common stock between December 31, 2018 and December 31, 2019. Return on average assets and average equity for the fourth quarter of 2019 were 1.25% and 11.24%, respectively, compared to 1.28% and 11.73%, respectively, for the third quarter of 2019 and 1.15% and 10.67%, respectively, for the fourth quarter of 2018.

"We are very satisfied with our fourth quarter and 2019 financial results. During 2019, strategic initiatives and goals that placed increased emphasis on our financial results led to improvements in our net interest margin for the past two quarters, including 19 basis points year-over-year, and increased return on assets for the year. Loan growth has slowed in recent quarters, primarily due to a few large anticipated payoffs, although new originations remain stable. We are in one of the longest credit cycles in history and believe modest loan growth is prudent to maintain strong asset quality, while continuing to foster new, long-term banking relationships with strong borrowers. In the coming year, we will continue to execute on strategic initiatives that were designed to continue improving shareholder value," commented Ty Abston, the company's Chairman and Chief Executive Officer.

The company’s increase in net earnings in the fourth quarter of 2019, as compared to the fourth quarter of 2018, was primarily attributable to an increase in net interest income, before the provision for loan losses, of $1.6 million and an increase in noninterest income of $512,000. This was partially offset by an increase in noninterest expense of $1.7 million and income tax provision of $100,000. These factors impacting net earnings are discussed in more detail below.

Net interest income, before the provision for loan losses, in the fourth quarter of 2019 and 2018 was $20.5 million and $18.9 million, respectively, an increase of $1.6 million, or 8.7%. Net interest margin, on a taxable equivalent basis, for the fourth quarter of 2019 and 2018 was 3.77% and 3.58%, respectively. Net interest income was positively affected by achieving higher increases in loan yields than for deposit costs. During the period, loan yield increased from 5.25% for the fourth quarter of 2018 to 5.32% for the fourth quarter of 2019, a change of seven basis points, while the cost of interest bearing deposits decreased from 1.44% to 1.35% during the same period, a change of nine basis points. Net interest margin increased from 3.71% in the third quarter of 2019 to 3.77% in the fourth quarter of 2019, primarily due to decreases in the cost of interest-bearing liabilities.

There was no provision for loan losses in the fourth quarter of 2019, compared to $100,000 in the third quarter of 2019 and $500,000 in the fourth quarter of 2018. The provision for loan losses is primarily reflective of minimal net growth during the respective periods, however, a recovery of $487,000 was also received during the second quarter of 2019 from proceeds of a life insurance policy that collateralized a loan that was charged-off several years ago, thus reducing the need for additional provision in the third and fourth quarter of 2019. Nonperforming assets as a percentage of total loans were 0.72% at December 31, 2019, compared to 0.69% at September 30, 2019, and 0.46% at December 31, 2018. Our nonperforming assets consist primarily of nonaccrual loans, three of which are Small Business Administration (SBA) partially guaranteed loans with combined book balances of $5.6 million as of December 31, 2019 that were acquired in the acquisition of Westbound Bank in June 2018. Management is currently in the process of working with these borrowers to effectuate a plan which would allow for these loans to return to a performing status. Excluding these partially guaranteed SBA loans, non-performing assets as a percentage of total loans at December 31, 2019 would be 0.39%.

Noninterest income increased $512,000, or 12.3%, in the fourth quarter of 2019, to $4.7 million, compared to $4.2 million for the quarter ended December 31, 2018. The increase from the same quarter in 2018 was due primarily to an increase in the gain on sales of loans of$343,000, or78.5%,anincreaseof $135,000, or 13.4%, in merchant and debit card fees, a $62,000, or 40.1%, increase in bank-owned life insurance income and an $83,000, or 8.8%, increase in service charges during the fourth quarter of 2019. These increases were partially offset be a decrease in other noninterest income of $184,000, or 16.7% from the fourth quarter of 2018.

Noninterest income increased $69,000, or 1.5%, to $4.7 million in the fourth quarter of 2019, compared to $4.6 million for the quarter ended September 30, 2019. The increase was primarily attributable to an increase in other noninterest income of $135,000, or 17.3%, increases in service charges and merchant and debit card fees of $44,000 each, or 4.5% and 4.0%, respectively, and were partially offset by decreases in the gain on sale of loans of $130,000, or 14.3%, and bank-owned life insurance income of $33,000, or 13.4%, from the previous quarter.

Noninterest expense increased $1.7 million, or 11.6%, in the fourth quarter of 2019, compared to the fourth quarter of 2018. The increase in noninterest expense in the fourth quarter of 2019 was primarily driven by an increase in employee compensation and benefits expense to $9.3 million, a change of $933,000, or 11.1%, from the same quarter of the prior year due to annual salary increases and 13 employees added to support operational growth, as well as a new location in the Houston MSA. Occupancy expenses also increased $187,000, or 8.1%, from $2.3 million in the fourth quarter of 2018, to $2.5 million in the fourth quarter of 2019. The increase in occupancy expense from the fourth quarter of 2018 resulted primarily from the addition of the new Houston location, as well as relocating into our new corporate offices in Addison, Texas. Software and technology expenses increased by $249,000, or 38.1% compared to the same quarter of the prior year resulting from new software investments to improve online deposit account opening. These increases in noninterest expense were partially offset by a decrease in FDIC insurance assessment fees of $146,000, or 100%, and a decrease in director and committee fees of $39,000, or 17.2%, compared to the same quarter of the prior year. The company’s efficiency ratio in the fourth quarter of 2019 was 64.49%, compared to 63.16% in the same quarter last year.

Noninterest expense increased $802,000, or 5.2%, in the fourth quarter of 2019 to $16.2 million, compared to the quarter ended September 30, 2019. The increase was primarily due to a $436,000, or 4.9% increase in employee compensation and benefits, which included the effect of annual salary increases that occurred during the fourth quarter, as well as additional accrued expense incurred under the Company’s incentive compensation bonus plan. During the fourth quarter, there was a $184,000, or 54.3%, increase in advertising and promotions and a $146,000, or 47.1%, increase in ATM and debit card expense. This was partially offset by a $75,000, or 10.9%, decrease in legal and professional fees from the previous quarter. The company’s efficiency ratio in the fourth quarter of 2019 was 64.49%, compared to 62.49% in the prior quarter.

Consolidated assets for the company totaled $2.32 billion at December 31, 2019 and $2.33 billion at September 30, 2019, compared to $2.27 billion at December 31, 2018. Gross loans decreased 1.7%, or $30.0 million, to $1.71 billion at December 31, 2019, compared to loans of $1.74 billion at September 30, 2019. Gross loans increased 2.8%, or $46.9 million, from $1.66 billion at December 31, 2018. The decrease in gross loans from the third to fourth quarter of 2019 was effected by the payoff during the fourth quarter of three large participation purchased relationships from other banks that had book balances of approximately $43.4 million. New loan originations during the fourth quarter of 2019 were $167.9 million, of which $124.6 million was funded on the origination date, compared to new loan originations in the third quarter of $215.4 million, of which $142.1 million was funded on the origination date. Deposits decreased by 0.3%, or $6.5 million, to $1.96 billion at December 31, 2019, compared to $1.96 billion at September 30, 2019. Total deposits increased 4.6%, or $85.3 million, from $1.87 billion at December 31, 2018. Changes in gross loans and deposits during these periods resulted from regular fluctuations in customer loan and deposit account balances or from organic growth. Shareholders' equity totaled $261.6 million as of December 31, 2019, compared to $255.9 million at September 30, 2019 and $244.6 million at December 31, 2018. The increase from the previous quarter and from the fourth quarter of 2018 resulted primarily from increases in operating earnings, partially offset by the repurchase of common stock and payment of dividends during the periods.

Guaranty Bancshares, Inc.

Consolidated Financial Summary (Unaudited)

(In thousands, except share and per share data)

 

As of

 

2019

 

2018

 

December 31

 

September 30

 

June 30

 

March 31

 

December 31

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

39,907

 

$

42,051

 

$

34,823

 

$

40,915

 

$

44,471

Federal funds sold

 

45,246

 

 

14,250

 

 

46,450

 

 

58,000

 

 

20,275

Interest-bearing deposits

 

5,561

 

 

2,347

 

 

11,162

 

 

9,389

 

 

6,764

Total cash and cash equivalents

 

90,714

 

 

58,648

 

 

92,435

 

 

108,304

 

 

71,510

Securities available for sale

 

212,716

 

 

221,345

 

 

228,714

 

 

236,979

 

 

232,975

Securities held to maturity

 

155,458

 

 

156,925

 

 

158,915

 

 

160,980

 

 

163,164

Loans held for sale

 

2,368

 

 

3,841

 

 

4,052

 

 

1,222

 

 

1,795

Loans, net

 

1,690,794

 

 

1,720,595

 

 

1,678,705

 

 

1,640,979

 

 

1,645,444

Accrued interest receivable

 

9,151

 

 

7,825

 

 

9,098

 

 

8,245

 

 

9,292

Premises and equipment, net

 

53,431

 

 

52,956

 

 

52,606

 

 

52,378

 

 

52,227

Other real estate owned

 

603

 

 

551

 

 

535

 

 

632

 

 

751

Cash surrender value of life insurance

 

34,495

 

 

34,280

 

 

34,039

 

 

26,458

 

 

26,301

Deferred tax asset

 

2,479

 

 

2,363

 

 

2,050

 

 

2,167

 

 

3,209

Core deposit intangible, net

 

3,853

 

 

4,066

 

 

4,279

 

 

4,493

 

 

4,706

Goodwill

 

32,160

 

 

32,160

 

 

32,160

 

 

32,160

 

 

32,160

Other assets

 

30,748

 

 

30,467

 

 

35,039

 

 

33,994

 

 

23,436

Total assets

$

2,318,970

 

$

2,326,022

 

$

2,332,627

 

$

2,308,991

 

$

2,266,970

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

$

525,865

 

$

528,301

 

$

498,349

 

$

490,206

 

$

489,789

Interest-bearing

 

1,430,939

 

 

1,435,012

 

 

1,485,641

 

 

1,472,095

 

 

1,381,691

Total deposits

 

1,956,804

 

 

1,963,313

 

 

1,983,990

 

 

1,962,301

 

 

1,871,480

Securities sold under agreements to repurchase

 

11,100

 

 

11,363

 

 

10,814

 

 

11,542

 

 

12,228

Accrued interest and other liabilities

 

23,587

 

 

23,508

 

 

24,265

 

 

22,397

 

 

10,733

Federal Home Loan Bank advances

 

55,118

 

 

60,623

 

 

52,127

 

 

50,131

 

 

115,136

Subordinated debentures

 

10,810

 

 

11,310

 

 

11,310

 

 

12,310

 

 

12,810

Total liabilities

 

2,057,419

 

 

2,070,117

 

 

2,082,506

 

 

2,058,681

 

 

2,022,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

261,551

 

 

255,905

 

 

250,121

 

 

250,310

 

 

244,583

Total liabilities and shareholders' equity

$

2,318,970

 

$

2,326,022

 

$

2,332,627

 

$

2,308,991

 

$

2,266,970

Guaranty Bancshares, Inc.

Consolidated Financial Summary (Unaudited)

(In thousands, except share and per share data)

 

Quarter Ended

 

 

2019

 

 

2018

 

 

December 31

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

INCOME STATEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

25,848

 

$

25,853

 

 

$

25,553

 

 

$

25,307

 

 

$

24,719

 

Interest expense

 

5,354

 

 

5,770

 

 

 

6,267

 

 

 

6,300

 

 

 

5,863

 

Net interest income

 

20,494

 

 

20,083

 

 

 

19,286

 

 

 

19,007

 

 

 

18,856

 

Provision for loan losses

 

 

 

100

 

 

 

575

 

 

 

575

 

 

 

500

 

Net interest income after provision for loan losses

 

20,494

 

 

19,983

 

 

 

18,711

 

 

 

18,432

 

 

 

18,356

 

Noninterest income

 

4,685

 

 

4,616

 

 

 

4,110

 

 

 

3,562

 

 

 

4,173

 

Noninterest expense

 

16,237

 

 

15,435

 

 

 

15,394

 

 

 

15,470

 

 

 

14,544

 

Income before income taxes

 

8,942

 

 

9,164

 

 

 

7,427

 

 

 

6,524

 

 

 

7,985

 

Income tax provision

 

1,573

 

 

1,634

 

 

 

1,384

 

 

 

1,187

 

 

 

1,473

 

Net earnings

$

7,369

 

$

7,530

 

 

$

6,043

 

 

$

5,337

 

 

$

6,512

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, basic

$

0.64

 

$

0.65

 

 

$

0.52

 

 

$

0.45

 

 

$

0.55

 

Earnings per common share, diluted

 

0.63

 

 

0.65

 

 

 

0.52

 

 

 

0.45

 

 

 

0.55

 

Cash dividends per common share

 

0.18

 

 

0.18

 

 

 

0.17

 

 

 

0.17

 

 

 

0.17

 

Book value per common share - end of quarter

 

22.65

 

 

22.19

 

 

 

21.64

 

 

 

21.21

 

 

 

20.68

 

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

 

19.53

 

 

19.05

 

 

 

18.48

 

 

 

18.10

 

 

 

17.56

 

Common shares outstanding - end of quarter

 

11,547,443

 

 

11,534,393

 

 

 

11,560,058

 

 

 

11,803,786

 

 

 

11,829,868

 

Weighted-average common shares outstanding, basic

 

11,533,849

 

 

11,550,335

 

 

 

11,659,513

 

 

 

11,815,966

 

 

 

11,888,817

 

Weighted-average common shares outstanding, diluted

 

11,621,887

 

 

11,612,873

 

 

 

11,730,058

 

 

 

11,859,458

 

 

 

11,951,271

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

1.25

%

 

1.28

%

 

 

1.05

%

 

 

0.94

%

 

 

1.15

%

Return on average equity (annualized)

 

11.24

 

 

11.73

 

 

 

9.97

 

 

 

9.11

 

 

 

10.67

 

Net interest margin (annualized)(2)

 

3.77

 

 

3.71

 

 

 

3.61

 

 

 

3.64

 

 

 

3.58

 

Efficiency ratio(3)

 

64.49

 

 

62.49

 

 

 

65.74

 

 

 

68.55

 

 

 

63.16

 

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

(2) Net interest margin represents the annualized net interest income on a fully tax equivalent basis divided by average interest-earning assets.

(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.

 

 

Twelve months ended

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

INCOME STATEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

102,561

 

 

$

88,458

 

 

 

 

 

 

 

Interest expense

 

 

23,691

 

 

 

19,542

 

 

 

 

 

 

 

Net interest income

 

 

78,870

 

 

 

68,916

 

 

 

 

 

 

 

Provision for loan losses

 

 

1,250

 

 

 

2,250

 

 

 

 

 

 

 

Net interest income after provision for loan losses

 

 

77,620

 

 

 

66,666

 

 

 

 

 

 

 

Noninterest income

 

 

16,973

 

 

 

15,303

 

 

 

 

 

 

 

Noninterest expense

 

 

62,536

 

 

 

56,774

 

 

 

 

 

 

 

Income before income taxes

 

 

32,057

 

 

 

25,195

 

 

 

 

 

 

 

Income tax provision

 

 

5,778

 

 

 

4,599

 

 

 

 

 

 

 

Net earnings

 

$

26,279

 

 

$

20,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, basic

 

$

2.26

 

 

$

1.78

 

 

 

 

 

 

 

Earnings per common share, diluted

 

 

2.26

 

 

 

1.77

 

 

 

 

 

 

 

Cash dividends per common share

 

 

0.70

 

 

 

0.60

 

 

 

 

 

 

 

Book value per common share - end of quarter

 

 

22.65

 

 

 

20.68

 

 

 

 

 

 

 

Common shares outstanding - end of quarter

 

 

11,547,443

 

 

 

11,829,868

 

 

 

 

 

 

 

Weighted-average common shares outstanding, basic

 

 

11,638,897

 

 

 

11,562,826

 

 

 

 

 

 

 

Weighted-average common shares outstanding, diluted

 

 

11,705,099

 

 

 

11,653,766

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.13

%

 

0.97%

 

 

 

 

 

 

 

Return on average equity

 

 

10.37

 

 

 

9.03

 

 

 

 

 

 

 

Net interest margin(1)

 

 

3.69

 

 

 

3.50

 

 

 

 

 

 

 

Efficiency ratio(2)

 

 

65.23

 

 

 

67.37

 

 

 

 

 

 

 

(1) Net interest margin represents the net interest income on a fully tax equivalent basis divided by average interest-earning assets.

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

Guaranty Bancshares, Inc.

Selected Financial Data (Unaudited)

(In thousands)

 

As of

 

 

2019

 

 

2018

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

LOAN PORTFOLIO COMPOSITION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

279,583

 

 

$

299,714

 

 

$

286,190

 

 

$

246,176

 

 

$

261,779

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and development

 

280,498

 

 

 

256,459

 

 

 

231,167

 

 

 

250,852

 

 

 

237,503

 

Commercial real estate

 

567,360

 

 

 

581,742

 

 

 

592,945

 

 

 

581,926

 

 

 

582,519

 

Farmland

 

57,476

 

 

 

61,073

 

 

 

71,009

 

 

 

72,274

 

 

 

67,845

 

1-4 family residential

 

412,166

 

 

 

406,880

 

 

 

391,789

 

 

 

390,618

 

 

 

393,067

 

Multi-family residential

 

37,379

 

 

 

58,198

 

 

 

44,699

 

 

 

37,430

 

 

 

38,386

 

Consumer

 

53,245

 

 

 

53,315

 

 

 

56,099

 

 

 

56,158

 

 

 

54,777

 

Agricultural

 

18,359

 

 

 

18,728

 

 

 

19,721

 

 

 

19,994

 

 

 

23,277

 

Overdrafts

 

329

 

 

 

330

 

 

 

228

 

 

 

275

 

 

 

382

 

Total loans(1)(2)

$

1,706,395

 

 

$

1,736,439

 

 

$

1,693,847

 

 

$

1,655,703

 

 

$

1,659,535

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

2019

 

 

2018

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

ALLOWANCE FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

16,394

 

 

$

15,743

 

 

$

15,190

 

 

$

14,651

 

 

$

14,441

 

Loans charged-off

 

(221

)

 

 

(67

)

 

 

(87

)

 

 

(78

)

 

 

(507

)

Recoveries

 

29

 

 

 

618

 

 

 

65

 

 

 

42

 

 

 

217

 

Provision for loan losses

 

 

 

 

100

 

 

 

575

 

 

 

575

 

 

 

500

 

Balance at end of period

$

16,202

 

 

$

16,394

 

 

$

15,743

 

 

$

15,190

 

 

$

14,651

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses / period-end loans

 

0.95

%

 

 

0.94

%

 

 

0.93

%

 

 

0.92

%

 

 

0.88

%

Allowance for loan losses / nonperforming loans

 

143.9

 

 

 

150.7

 

 

 

163.2

 

 

 

419.2

 

 

 

248.7

 

Net charge-offs / average loans (annualized)

 

0.04

 

 

 

(0.13

)

 

 

0.01

 

 

 

0.01

 

 

 

0.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans (3)

$

11,262

 

 

$

10,881

 

 

$

9,645

 

 

$

3,624

 

 

$

5,891

 

Other real estate owned

 

603

 

 

 

551

 

 

 

535

 

 

 

632

 

 

 

751

 

Repossessed assets owned

 

392

 

 

 

500

 

 

 

612

 

 

 

948

 

 

 

971

 

Total non-performing assets

$

12,257

 

 

$

11,932

 

 

$

10,792

 

 

$

5,204

 

 

$

7,613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets as a percentage of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans(1)(3)

 

0.72

%

 

 

0.69

%

 

 

0.64

%

 

 

0.31

%

 

 

0.46

%

Total assets

 

0.53

 

 

 

0.51

 

 

 

0.46

 

 

 

0.23

 

 

 

0.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructured loans-nonaccrual

$

101

 

 

$

118

 

 

$

119

 

 

$

487

 

 

$

335

 

Restructured loans-accruing

 

7,240

 

 

 

7,297

 

 

 

2,278

 

 

 

671

 

 

 

861

 

(1) Excludes outstanding balances of loans held for sale of $2.4 million, $3.8 million, $4.1 million, $1.2 million, and $1.8 million as of December 31, September 30, June 30, and March 31, 2019 and December 31, 2018, respectively.

(2) Excludes deferred loan fees of $601,000, $550,000, $601,000, $466,000, and $560,000 as of December 31, September 30, June 30, and March 31, 2019 and December 31, 2018, respectively.

(3) Restructured loans-nonaccrual are included in nonaccrual loans which are a component of nonperforming loans.

Guaranty Bancshares, Inc.

Selected Financial Data (Unaudited)

(In thousands)

 

Quarter Ended

 

 

2019

 

2018

 

 

December 31

 

September 30

 

June 30

 

March 31

 

December 31

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges

$

1,022

 

$

978

 

$

889

 

$

826

 

$

939

 

Net realized loss on securities transactions

 

 

 

 

 

(22

)

 

 

 

 

Net realized gain on sale of loans

 

780

 

 

910

 

 

683

 

 

477

 

 

437

 

Fiduciary income

 

455

 

 

446

 

 

434

 

 

425

 

 

408

 

Bank-owned life insurance income

 

214

 

 

247

 

 

155

 

 

158

 

 

152

 

Merchant and debit card fees

 

1,140

 

 

1,096

 

 

1,069

 

 

959

 

 

1,005

 

Loan processing fee income

 

157

 

 

157

 

 

148

 

 

128

 

 

131

 

Other noninterest income

 

917

 

 

782

 

 

754

 

 

589

 

 

1,101

 

Total noninterest income

$

4,685

 

$

4,616

 

$

4,110

 

$

3,562

 

$

4,173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

$

9,332

 

$

8,896

 

$

8,693

 

$

8,986

 

$

8,399

 

Occupancy expenses

 

2,509

 

 

2,448

 

 

2,437

 

 

2,451

 

 

2,322

 

Legal and professional fees

 

611

 

 

686

 

 

687

 

 

626

 

 

531

 

Software and technology

 

902

 

 

885

 

 

772

 

 

782

 

 

653

 

Amortization

 

338

 

 

342

 

 

349

 

 

349

 

 

347

 

Director and committee fees

 

188

 

 

220

 

 

226

 

 

239

 

 

227

 

Advertising and promotions

 

523

 

 

339

 

 

408

 

 

385

 

 

416

 

ATM and debit card expense

 

456

 

 

310

 

 

303

 

 

278

 

 

270

 

Telecommunication expense

 

168

 

 

165

 

 

169

 

 

174

 

 

173

 

FDIC insurance assessment fees

 

 

 

 

 

140

 

 

33

 

 

146

 

Other noninterest expense

 

1,210

 

 

1,144

 

 

1,210

 

 

1,167

 

 

1,060

 

Total noninterest expense

$

16,237

$

15,435

 

$

15,394

 

$

15,470

 

$

14,544

 

Guaranty Bancshares, Inc.

 

Selected Financial Data (Unaudited)

(In thousands)

 

 

 

For the Three Months Ended December 31,

 

 

 

2019

 

 

2018

 

 

 

Average

Outstanding

Balance

 

 

Interest

Earned/

Interest

Paid

 

 

Average

Yield/ Rate

 

 

Average

Outstanding

Balance

 

 

Interest

Earned/

Interest

Paid

 

 

Average

Yield/ Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earnings assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans(1)

 

$

1,727,866

 

 

$

23,159

 

 

 

5.32

%

 

$

1,645,952

 

 

$

21,793

 

 

 

5.25

%

Securities available for sale

 

 

225,002

 

 

 

1,343

 

 

 

2.37

 

 

 

234,367

 

 

 

1,527

 

 

 

2.58

 

Securities held to maturity

 

 

156,263

 

 

 

989

 

 

 

2.51

 

 

 

164,084

 

 

 

1,035

 

 

 

2.50

 

Nonmarketable equity securities

 

 

9,078

 

 

 

169

 

 

 

7.39

 

 

 

11,994

 

 

 

132

 

 

 

4.37

 

Interest-bearing deposits in other banks

 

 

44,962

 

 

 

188

 

 

 

1.66

 

 

 

35,770

 

 

 

232

 

 

 

2.57

 

Total interest-earning assets

 

 

2,163,171

 

 

 

25,848

 

 

 

4.74

 

 

 

2,092,167

 

 

 

24,719

 

 

 

4.69

 

Allowance for loan losses

 

 

(16,312

)

 

 

 

 

 

 

 

 

 

 

(14,525

)

 

 

 

 

 

 

 

 

Noninterest-earnings assets

 

 

194,907

 

 

 

 

 

 

 

 

 

 

 

185,179

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,341,766

 

 

 

 

 

 

 

 

 

 

$

2,262,821

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

1,450,592

 

 

$

4,930

 

 

 

1.35

%

 

$

1,379,641

 

 

$

4,993

 

 

 

1.44

%

Advances from FHLB and fed funds purchased

 

 

45,614

 

 

 

263

 

 

 

2.29

 

 

 

112,551

 

 

 

684

 

 

 

2.41

 

Subordinated debentures

 

 

11,305

 

 

 

154

 

 

 

5.40

 

 

 

12,821

 

 

 

171

 

 

 

5.29

 

Securities sold under agreements to repurchase

 

 

11,469

 

 

 

7

 

 

 

0.24

 

 

 

14,002

 

 

 

15

 

 

 

0.43

 

Total interest-bearing liabilities

 

 

1,518,980

 

 

 

5,354

 

 

 

1.40

 

 

 

1,519,015

 

 

 

5,863

 

 

 

1.53

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

532,965

 

 

 

 

 

 

 

 

 

 

 

487,180

 

 

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

 

29,661

 

 

 

 

 

 

 

 

 

 

 

12,534

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

562,626

 

 

 

 

 

 

 

 

 

 

 

499,714

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

260,160

 

 

 

 

 

 

 

 

 

 

 

244,092

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

2,341,766

 

 

 

 

 

 

 

 

 

 

$

2,262,821

 

 

 

 

 

 

 

 

 

Net interest rate spread(2)

 

 

 

 

 

 

 

 

 

 

3.34

%

 

 

 

 

 

 

 

 

 

 

3.16

%

Net interest income

 

 

 

 

 

$

20,494

 

 

 

 

 

 

 

 

 

 

$

18,856

 

 

 

 

 

Net interest margin(3)

 

 

 

 

 

 

 

 

 

 

3.77

%

 

 

 

 

 

 

 

 

 

 

3.58

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes average outstanding balances of loans held for sale of $3.8 million and $1.2 million for the three months ended December 31, 2019 and 2018, 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. Net interest margin on a taxable equivalent basis was 3.77% and 3.58% for the three months ended December 31, 2019 and 2018, respectively, using a marginal tax rate of 21%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Guaranty Bancshares, Inc.

Selected Financial Data (Unaudited)

(In thousands)

 

For The Years Ended December 31,

 

 

2019

 

 

2018

 

 

Average

Outstanding

Balance

 

 

Interest

Earned/

Interest

Paid

 

Average

Yield/

Rate

 

 

Average

Outstanding

Balance

 

 

Interest

Earned/

Interest

Paid

 

Average

Yield/

Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earnings assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans(1)

$

1,689,108

 

 

$

90,980

 

 

5.39

%

 

$

1,524,792

 

 

$

77,170

 

 

5.06

%

Securities available for sale

 

229,351

 

 

 

5,715

 

 

2.49

 

 

 

236,799

 

 

 

5,927

 

 

2.50

 

Securities held to maturity

 

159,104

 

 

 

4,031

 

 

2.53

 

 

 

167,919

 

 

 

4,160

 

 

2.48

 

Nonmarketable equity securities

 

11,343

 

 

 

640

 

 

5.64

 

 

 

9,625

 

 

 

432

 

 

4.49

 

Interest-bearing deposits in other banks

 

53,783

 

 

 

1,195

 

 

2.22

 

 

 

35,521

 

 

 

769

 

 

2.16

 

Total interest-earning assets

 

2,142,689

 

 

 

102,561

 

 

4.79

 

 

 

1,974,656

 

 

 

88,458

 

 

4.48

 

Allowance for loan losses

 

(15,692

)

 

 

 

 

 

 

 

 

 

(13,825

)

 

 

 

 

 

 

 

Noninterest-earning assets

 

192,205

 

 

 

 

 

 

 

 

 

 

167,734

 

 

 

 

 

 

 

 

Total assets

$

2,319,202

 

 

 

 

 

 

 

 

 

$

2,128,565

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

$

1,460,215

 

 

$

21,611

 

 

1.48

%

 

$

1,324,744

 

 

$

16,941

 

 

1.28

%

Advances from FHLB and fed funds purchased

 

58,070

 

 

 

1,389

 

 

2.39

 

 

 

94,338

 

 

 

1,865

 

 

1.98

 

Subordinated debentures

 

11,905

 

 

 

655

 

 

5.50

 

 

 

13,309

 

 

 

687

 

 

5.16

 

Securities sold under agreements to repurchase

 

10,901

 

 

 

36

 

 

0.33

 

 

 

12,796

 

 

 

49

 

 

0.38

 

Total interest-bearing liabilities

 

1,541,091

 

 

 

23,691

 

 

1.54

 

 

 

1,445,187

 

 

 

19,542

 

 

1.35

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

500,895

 

 

 

 

 

 

 

 

 

 

446,560

 

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

23,693

 

 

 

 

 

 

 

 

 

 

8,754

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

524,588