Press Release

Guaranty Bancshares, Inc. Reports First Quarter 2020 Financial Results

Company Release - 4/20/2020 5:35 PM ET

ADDISON, Texas--(BUSINESS WIRE)-- Guaranty Bancshares, Inc. (NASDAQ: GNTY), the parent company of Guaranty Bank & Trust, N.A., today reported financial results for the fiscal quarter ended March 31, 2020. The Company's net income available to common shareholders was $6.3 million, or $0.55 per basic share, for the quarter ended March 31, 2020, compared to $7.4 million, or $0.64 per basic share, for the quarter ended December 31, 2019 and $5.3 million, or $0.45 per basic share, for the quarter ended March 31, 2019. In addition to increased net income, earnings per basic share during the first quarter of 2020 compared to the same period in 2019 were partially impacted by our repurchase of 421,887 shares of common stock during the first quarter ending March 31, 2020. Return on average assets and average equity for the first quarter of 2020 were 1.09% and 9.94%, respectively, compared to 1.25% and 11.24%, respectively, for the fourth quarter of 2019 and 0.94% and 9.11%, respectively, for the first quarter of 2019.

"Although we had a solid first quarter in 2020, our thoughts and focus are now with our employees and customers who are impacted by COVID-19. We have contacted our borrowers and offered relief when needed through both payment deferral and interest only programs. We are participating in the Paycheck Protection Program and currently have SBA approvals of approximately $176.8 million for PPP loans to small businesses in our communities. We have a significant portion of our employees working from their homes to practice social distancing and reduce the chance of contracting the virus. We have also contributed to several charities that are on the front lines in our affected communities to help support their response efforts. These are unprecedented times but our Bank has strong asset quality and capital levels, strong liquidity sources and diversified borrowers who we believe will weather this crisis. Our Company is built on a solid foundation that will allow us to stand by our customers during this time of need and get through this crisis together," commented Ty Abston, the Company's Chairman and Chief Executive Officer.

Net interest income, before the provision for loan losses, in the first quarter of 2020 and 2019 was $20.6 million and $19.0 million, respectively, an increase of $1.6 million, or 8.2%. Net interest margin, on a taxable equivalent basis, for the first quarter of 2020 and 2019 was 3.87% and 3.64%, respectively. During the period, loan yield decreased from 5.46% for the first quarter of 2019 to 5.32% for the first quarter of 2020, a change of 14 basis points, while the cost of interest bearing deposits decreased from 1.58% to 1.21% during the same period, a change of 37 basis points. Net interest margin, on a taxable equivalent basis, increased from 3.77% in the fourth quarter of 2019 to 3.87% in the first quarter of 2020, primarily due to decreases in the cost of interest-bearing liabilities.

The Bank adopted the Current Expected Credit Losses (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. The day one increase was primarily due to recognizing expected lifetime losses in the portfolio and adding an economic forecast, which was based on our assumption on January 1, 2020 that our nation was at the end of a long economic cycle and a minor recession was likely. Subsequent to the day one effect, there was a $1.4 million provision for loan losses in the first quarter of 2020, compared to no provision recorded in the fourth quarter of 2019 and $575,000 in the first quarter of 2019. The $1.4 million provision this quarter consists of approximately $1.0 million that we provided as a result of COVID-19 specifically and the remaining $400,000 was calculated using our standard CECL methodology for loans that were not downgraded in March due to COVID-19. From March 31, 2020 through the date of this earnings release, we have closely reviewed our loan portfolio and have spoken to most borrowers about their financial hardships, if any. As a result, we have downgraded additional loans in industries affected by this crisis to appropriate risk ratings given the expected impacts of COVID-19 on those industries. These downgrades and other portfolio analysis resulted in additional reserves of approximately $4.0 million, which will be added to our allowance for loan losses and expensed in April 2020. The economic impacts of COVID-19 are still very much unknown. Therefore, the additional reserves we have added, and any future reserves that we may add until the effects of COVID-19 are more clear, are primarily qualitative in nature and may not be allocated to any one loan or group of loans.

Nonperforming assets as a percentage of total loans were 1.00% at March 31, 2020, compared to 0.72% at December 31, 2019, and 0.31% at March 31, 2019. Our nonperforming assets consist primarily of nonaccrual loans, three of which are Small Business Administration (SBA) 7(a), partially guaranteed (75%) loans acquired in our June 2018 acquisition of Westbound Bank with combined book balances of $8.7 million as of March 31, 2020. Management continues efforts with these borrowers to achieve a return to full performing status; however, all three loans are collateralized by hospitality-focused properties and have been heavily impacted by the COVID-19 crisis, thus limiting available workout options at this time. Excluding these partially guaranteed SBA loans, non-performing assets as a percentage of total loans at March 31, 2020 would be 0.49%.

In response to COVID-19, the Bank is:

  • Participating in the Paycheck Protection Program, administered by the SBA, to provide potentially forgivable loans to small businesses to be used for payroll, utilities, rent and interest. As of April 17, 2020, we have SBA approvals for loans of $176.8 million, which represents 1,175 loans that impact approximately 21,000 jobs.
  • Working with borrowers to provide hardship relief either through a 3-month payment deferral or up to 6-months of interest only payments. As of April 17, 2020, we have 321 borrowers with outstanding loan balances of $67.7 million who have requested this relief under the 3-month deferral program, and 203 borrowers with outstanding loans balances of $87.5 million who have requested relief under the up to 6-month interest only program.
  • Suspending foreclosures and repossessions, and waiving overdraft fees, late payment fees and CD early withdrawal penalties through at least June 30, 2020.
  • Assisting current and former customers obtain their stimulus relief checks from the IRS by re-opening closed deposit accounts when requested.
  • Practicing social distancing with both employees and customers. Our lobbies are temporarily closed and by appointment only, but drive-thrus remain open and employees are contacting customers to assist them with online and mobile banking when desired. We have also implemented bank-wide work-from-home rotation programs, where possible.
  • Contributing to charities in all communities we serve to assist with COVID-19 crisis relief efforts.

Noninterest income increased $1.4 million, or 39.3%, in the first quarter of 2020, to $5.0 million, compared to $3.6 million for the quarter ended March 31, 2019. The increase from the same quarter in 2019 was due primarily to an increase in the gain on sales of loans of$712,000, or149.3%, anincreasein merchant and debit card fees of $172,000, or 17.9%, an increase in bank owned life insurance income of $60,000, or 38.0%, and an increase in service charge income of $82,000, or 9.9%, during the first quarter of 2020. Other non-interest income increased $262,000, or 44.5%, from the same period in 2019, due primarily to a large SBA fair value adjustment in the first quarter of 2019 that did not occur in the same quarter of the current year.

Noninterest income increased $287,000, or 6.1%, to $5.0 million in the first quarter of 2020, compared to $4.7 million for the quarter ended December 31, 2019. This was primarily attributable to an increase in the realized gain on sale of loans of $409,000, or 52.4%, and increases in fiduciary income of $59,000, or 13.0% from the prior quarter. These gains were partially offset by a $114,000, or 11.2%, decrease in service charge income and a decrease in other noninterest income of $55,000, or 6.1%, from the previous quarter.

Noninterest expense increased $937,000, or 6.1%, in the first quarter of 2020, compared to the first quarter of 2019. The increase in noninterest expense in the first quarter of 2020 was primarily driven by an increase in employee compensation and benefits expense to $9.5 million, a change of $480,000, or 5.3%, from the same quarter of the prior year due to annual salary increases and 6 employees added to support operational growth. Additionally, FDIC insurance assessment fees increased by $162,000, or 490.9%, due to expired benefits realized in the prior year. Software and technology expenses increased by $157,000, or 20.1% compared to the same quarter of the prior year resulting from new software investments to improve online deposit account opening and ATM and debit card expense increased $140,000, or 50.4%. These increases in noninterest expense were partially offset by a decrease in legal and professional fees of $107,000, or 17.1%, compared to the same quarter of the prior year. The company’s efficiency ratio in the first quarter of 2020 was 64.27%, compared to 68.55% in the same quarter last year.

Noninterest expense increased $181,000, or 1.1%, in the first quarter of 2020 to $16.4 million, compared to the quarter ended December 31, 2019. The increase was primarily due to an increase in FDIC insurance assessment fees by $195,000, versus none in the previous quarter, and a $134,000, or 1.4%, increase in employee compensation and benefits. This was partially offset by a $92,000, or 15.1%, decrease in legal and professional fees and a $90,000, or 17.2%, decrease in advertising and promotions from the previous quarter. The company’s efficiency ratio in the first quarter of 2020 was 64.27%, compared to 64.47% in the prior quarter.

Consolidated assets for the company totaled $2.39 billion at March 31, 2020 and $2.32 billion at December 31, 2019, compared to $2.31 billion at March 31, 2019. Gross loans increased 0.7%, or $12.0 million, to $1.72 billion at March 31, 2020, compared to loans of $1.71 billion at December 31, 2019. Gross loans increased 3.8%, or $62.7 million, from $1.66 billion at March 31, 2019. Deposits increased by 2.2%, or $43.6 million, to $2.00 billion at March 31, 2020, compared to $1.96 billion at December 31, 2019. Total deposits increased 1.9%, or $38.1 million, from $1.96 billion at March 31, 2019. Changes in gross loans and deposits during these periods resulted from regular fluctuations in customer loan and deposit account balances and from organic growth. Shareholders' equity totaled $252.7 million as of March 31, 2020, compared to $261.6 million at December 31, 2019 and $250.3 million at March 31, 2019. The decrease from the previous quarter resulted primarily from the effect of adopting CECL and from repurchase of common stock and payment of dividends, which were partially offset by net earnings during the period.

During the first quarter of 2020, we transferred all of our investment securities classified as held-to-maturity to available-for-sale in order to provide maximum flexibility to address liquidity and capital needs that may result from COVID-19. We believe these transfers are allowable under existing GAAP due to the isolated, non-recurring and usual events resulting from the pandemic.

 

Guaranty Bancshares, Inc.

Consolidated Financial Summary (Unaudited)

(In thousands, except share and per share data)

 

 

 

As of

 

 

 

2020

 

 

2019

 

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

40,354

 

 

$

39,907

 

 

$

42,051

 

 

$

34,823

 

 

$

40,915

 

Federal funds sold

 

 

81,250

 

 

 

45,246

 

 

 

14,250

 

 

 

46,450

 

 

 

58,000

 

Interest-bearing deposits

 

 

25,324

 

 

 

5,561

 

 

 

2,347

 

 

 

11,162

 

 

 

9,389

 

Total cash and cash equivalents

 

 

146,928

 

 

 

90,714

 

 

 

58,648

 

 

 

92,435

 

 

 

108,304

 

Securities available for sale

 

 

377,062

 

 

 

212,716

 

 

 

221,345

 

 

 

228,714

 

 

 

236,979

 

Securities held to maturity

 

 

 

 

 

155,458

 

 

 

156,925

 

 

 

158,915

 

 

 

160,980

 

Loans held for sale

 

 

4,024

 

 

 

2,368

 

 

 

3,841

 

 

 

4,052

 

 

 

1,222

 

Loans, net

 

 

1,696,861

 

 

 

1,690,794

 

 

 

1,720,595

 

 

 

1,678,705

 

 

 

1,640,979

 

Accrued interest receivable

 

 

8,148

 

 

 

9,151

 

 

 

7,825

 

 

 

9,098

 

 

 

8,245

 

Premises and equipment, net

 

 

54,496

 

 

 

53,431

 

 

 

52,956

 

 

 

52,606

 

 

 

52,378

 

Other real estate owned

 

 

605

 

 

 

603

 

 

 

551

 

 

 

535

 

 

 

632

 

Cash surrender value of life insurance

 

 

34,713

 

 

 

34,495

 

 

 

34,280

 

 

 

34,039

 

 

 

26,458

 

Deferred tax asset

 

 

 

 

 

 

 

 

2,363

 

 

 

2,050

 

 

 

2,167

 

Core deposit intangible, net

 

 

3,639

 

 

 

3,853

 

 

 

4,066

 

 

 

4,279

 

 

 

4,493

 

Goodwill

 

 

32,160

 

 

 

32,160

 

 

 

32,160

 

 

 

32,160

 

 

 

32,160

 

Other assets

 

 

31,393

 

 

 

32,701

 

 

 

30,467

 

 

 

35,039

 

 

 

33,994

 

Total assets

 

$

2,390,029

 

 

$

2,318,444

 

 

$

2,326,022

 

 

$

2,332,627

 

 

$

2,308,991

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

528,817

 

 

$

525,865

 

 

$

528,301

 

 

$

498,349

 

 

$

490,206

 

Interest-bearing

 

 

1,471,609

 

 

 

1,430,939

 

 

 

1,435,012

 

 

 

1,485,641

 

 

 

1,472,095

 

Total deposits

 

 

2,000,426

 

 

 

1,956,804

 

 

 

1,963,313

 

 

 

1,983,990

 

 

 

1,962,301

 

Securities sold under agreements to repurchase

 

 

11,843

 

 

 

11,100

 

 

 

11,363

 

 

 

10,814

 

 

 

11,542

 

Accrued interest and other liabilities

 

 

23,645

 

 

 

23,061

 

 

 

23,508

 

 

 

24,265

 

 

 

22,397

 

Other debt

 

 

20,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank advances

 

 

70,614

 

 

 

55,118

 

 

 

60,623

 

 

 

52,127

 

 

 

50,131

 

Subordinated debentures

 

 

10,810

 

 

 

10,810

 

 

 

11,310

 

 

 

11,310

 

 

 

12,310

 

Total liabilities

 

 

2,137,338

 

 

 

2,056,893

 

 

 

2,070,117

 

 

 

2,082,506

 

 

 

2,058,681

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

 

252,691

 

 

 

261,551

 

 

 

255,905

 

 

 

250,121

 

 

 

250,310

 

Total liabilities and shareholders' equity

 

$

2,390,029

 

 

$

2,318,444

 

 

$

2,326,022

 

 

$

2,332,627

 

 

$

2,308,991

 

 

 

Guaranty Bancshares, Inc.

Consolidated Financial Summary (Unaudited)

(In thousands, except share and per share data)

 

 

 

Quarter Ended

 

 

 

2020

 

 

2019

 

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

STATEMENTS OF EARNINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

25,252

 

 

$

25,848

 

 

$

25,853

 

 

$

25,553

 

 

$

25,307

 

Interest expense

 

 

4,683

 

 

 

5,354

 

 

 

5,770

 

 

 

6,267

 

 

 

6,300

 

Net interest income

 

 

20,569

 

 

 

20,494

 

 

 

20,083

 

 

 

19,286

 

 

 

19,007

 

Provision for loan losses

 

 

1,400

 

 

 

 

 

 

100

 

 

 

575

 

 

 

575

 

Net interest income after provision for loan losses

 

 

19,169

 

 

 

20,494

 

 

 

19,983

 

 

 

18,711

 

 

 

18,432

 

Noninterest income

 

 

4,961

 

 

 

4,674

 

 

 

4,616

 

 

 

4,110

 

 

 

3,562

 

Noninterest expense

 

 

16,407

 

 

 

16,226

 

 

 

15,435

 

 

 

15,394

 

 

 

15,470

 

Income before income taxes

 

 

7,723

 

 

 

8,942

 

 

 

9,164

 

 

 

7,427

 

 

 

6,524

 

Income tax provision

 

 

1,445

 

 

 

1,573

 

 

 

1,634

 

 

 

1,384

 

 

 

1,187

 

Net earnings

 

$

6,278

 

 

$

7,369

 

 

$

7,530

 

 

$

6,043

 

 

$

5,337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, basic

 

$

0.55

 

 

$

0.64

 

 

$

0.65

 

 

$

0.52

 

 

$

0.45

 

Earnings per common share, diluted(1)

 

 

0.55

 

 

 

0.63

 

 

 

0.65

 

 

 

0.52

 

 

 

0.45

 

Cash dividends per common share

 

 

0.19

 

 

 

0.18

 

 

 

0.18

 

 

 

0.17

 

 

 

0.17

 

Book value per common share - end of quarter

 

 

22.71

 

 

 

22.65

 

 

 

22.19

 

 

 

21.64

 

 

 

21.21

 

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

 

 

19.49

 

 

 

19.53

 

 

 

19.05

 

 

 

18.48

 

 

 

18.10

 

Common shares outstanding - end of quarter

 

 

11,128,556

 

 

 

11,547,443

 

 

 

11,534,393

 

 

 

11,560,058

 

 

 

11,803,786

 

Weighted-average common shares outstanding, basic

 

 

11,432,391

 

 

 

11,533,849

 

 

 

11,550,335

 

 

 

11,659,513

 

 

 

11,815,966

 

Weighted-average common shares outstanding, diluted(1)

 

 

11,432,391

 

 

 

11,621,887

 

 

 

11,612,873

 

 

 

11,730,058

 

 

 

11,859,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

 

1.09

%

 

 

1.25

%

 

 

1.28

%

 

 

1.05

%

 

 

0.94

%

Return on average equity (annualized)

 

 

9.94

 

 

 

11.24

 

 

 

11.73

 

 

 

9.97

 

 

 

9.11

 

Net interest margin (annualized)(3)

 

 

3.87

 

 

 

3.77

 

 

 

3.71

 

 

 

3.61

 

 

 

3.64

 

Efficiency ratio(4)

 

 

64.27

 

 

 

64.47

 

 

 

62.49

 

 

 

65.74

 

 

 

68.55

 

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

 

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

 

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

 

(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.

Selected Financial Data (Unaudited)

(In thousands)

 

 

 

As of

 

 

 

2020

 

 

2019

 

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

LOAN PORTFOLIO COMPOSITION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

297,163

 

 

$

279,583

 

 

$

299,714

 

 

$

286,190

 

 

$

246,176

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and development

 

 

263,973

 

 

 

280,498

 

 

 

256,459

 

 

 

231,167

 

 

 

250,852

 

Commercial real estate

 

 

584,883

 

 

 

567,360

 

 

 

581,742

 

 

 

592,945

 

 

 

581,926

 

Farmland

 

 

78,635

 

 

 

57,476

 

 

 

61,073

 

 

 

71,009

 

 

 

72,274

 

1-4 family residential

 

 

400,605

 

 

 

412,166

 

 

 

406,880

 

 

 

391,789

 

 

 

390,618

 

Multi-family residential

 

 

20,430

 

 

 

37,379

 

 

 

58,198

 

 

 

44,699

 

 

 

37,430

 

Consumer

 

 

52,996

 

 

 

53,245

 

 

 

53,315

 

 

 

56,099

 

 

 

56,158

 

Agricultural

 

 

19,314

 

 

 

18,359

 

 

 

18,728

 

 

 

19,721

 

 

 

19,994

 

Overdrafts

 

 

354

 

 

 

329

 

 

 

330

 

 

 

228

 

 

 

275

 

Total loans(1)(2)

 

$

1,718,353

 

 

$

1,706,395

 

 

$

1,736,439

 

 

$

1,693,847

 

 

$

1,655,703

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

2020

 

 

2019

 

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

ALLOWANCE FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period(3)

 

$

20,750

 

 

$

16,394

 

 

$

15,743

 

 

$

15,190

 

 

$

14,651

 

Loans charged-off

 

 

(224

)

 

 

(221

)

 

 

(67

)

 

 

(87

)

 

 

(78

)

Recoveries

 

 

22

 

 

 

29

 

 

 

618

 

 

 

65

 

 

 

42

 

Provision for loan loss expense

 

 

419

 

 

 

 

 

 

100

 

 

 

575

 

 

 

575

 

Provision for loan loss expense due to COVID-19

 

 

981

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at end of period

 

$

21,948

 

 

$

16,202

 

 

$

16,394

 

 

$

15,743

 

 

$

15,190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses / period-end loans

 

 

1.28

%

 

 

0.95

%

 

 

0.94

%

 

 

0.93

%

 

 

0.92

%

Allowance for loan losses / nonperforming loans

 

 

135.2

 

 

 

143.9

 

 

 

150.7

 

 

 

163.2

 

 

 

419.2

 

Net charge-offs / average loans (annualized)

 

 

0.05

 

 

 

0.04

 

 

 

(0.13

)

 

 

0.01

 

 

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans(4)

 

$

16,232

 

 

$

11,262

 

 

$

10,881

 

 

$

9,645

 

 

$

3,624

 

Other real estate owned

 

 

605

 

 

 

603

 

 

 

551

 

 

 

535

 

 

 

632

 

Repossessed assets owned

 

 

292

 

 

 

392

 

 

 

500

 

 

 

612

 

 

 

948

 

Total non-performing assets

 

$

17,129

 

 

$

12,257

 

 

$

11,932

 

 

$

10,792

 

 

$

5,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets as a percentage of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans(1)(2)

 

 

1.00

%

 

 

0.72

%

 

 

0.69

%

 

 

0.64

%

 

 

0.31

%

Total assets

 

 

0.72

 

 

 

0.53

 

 

 

0.51

 

 

 

0.46

 

 

 

0.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TDR loans - nonaccrual

 

$

97

 

 

$

101

 

 

$

118

 

 

$

119

 

 

$

487

 

TDR loans - accruing

 

 

7,220

 

 

 

7,240

 

 

 

7,297

 

 

 

2,278

 

 

 

671

 

(1) Excludes outstanding balances of loans held for sale of $4.0 million, $2.4 million, $3.8 million, $4.1 million, and $1.2 million as of March 31, 2020 and December 31, September 30, June 30 and March 31, 2019, respectively.

(2) Excludes deferred loan fees of $456,000, $601,000, $550,000, $601,000, and $466,000 as of March 31, 2020 and December 31, September 30, June 30 and March 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) 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

 

 

 

2020

 

 

2019

 

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges

 

$

908

 

 

$

1,022

 

 

$

978

 

 

$

889

 

 

$

826

 

Net realized loss on securities transactions

 

 

 

 

 

 

 

 

 

 

 

(22

)

 

 

 

Net realized gain on sale of loans

 

 

1,189

 

 

 

780

 

 

 

910

 

 

 

683

 

 

 

477

 

Fiduciary income

 

 

514

 

 

 

455

 

 

 

446

 

 

 

434

 

 

 

425

 

Bank-owned life insurance income

 

 

218

 

 

 

214

 

 

 

247

 

 

 

155

 

 

 

158

 

Merchant and debit card fees

 

 

1,131

 

 

 

1,140

 

 

 

1,096

 

 

 

1,069

 

 

 

959

 

Loan processing fee income

 

 

150

 

 

 

157

 

 

 

157

 

 

 

148

 

 

 

128

 

Other noninterest income

 

 

851

 

 

 

906

 

 

 

782

 

 

 

754

 

 

 

589

 

Total noninterest income

 

$

4,961

 

 

$

4,674

 

 

$

4,616

 

 

$

4,110

 

 

$

3,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

$

9,466

 

 

$

9,332

 

 

$

8,896

 

 

$

8,693

 

 

$

8,986

 

Occupancy expenses

 

 

2,477

 

 

 

2,498

 

 

 

2,448

 

 

 

2,437

 

 

 

2,451

 

Legal and professional fees

 

 

519

 

 

 

611

 

 

 

686

 

 

 

687

 

 

 

626

 

Software and technology

 

 

939

 

 

 

902

 

 

 

885

 

 

 

772

 

 

 

782

 

Amortization

 

 

333

 

 

 

338

 

 

 

342

 

 

 

349

 

 

 

349

 

Director and committee fees

 

 

219

 

 

 

188

 

 

 

220

 

 

 

226

 

 

 

239

 

Advertising and promotions

 

 

433

 

 

 

523

 

 

 

339

 

 

 

408

 

 

 

385

 

ATM and debit card expense

 

 

418

 

 

 

456

 

 

 

310

 

 

 

303

 

 

 

278

 

Telecommunication expense

 

 

180

 

 

 

168

 

 

 

165

 

 

 

169

 

 

 

174

 

FDIC insurance assessment fees

 

 

195

 

 

 

 

 

 

 

 

 

140

 

 

 

33

 

Other noninterest expense

 

 

1,228

 

 

 

1,210

 

 

 

1,144

 

 

 

1,210

 

 

 

1,167

 

Total noninterest expense

$

16,407

$

16,226

$

15,435

$

15,394

$

15,470

  

 

Guaranty Bancshares, Inc.

Selected Financial Data (Unaudited)

(In thousands)

 

 

 

For the Three Months Ended March 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-earnings assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans(1)

 

$

1,701,525

 

 

$

22,517

 

 

 

5.32

%

 

$

1,651,608

 

 

$

22,244

 

 

 

5.46

%

Securities available for sale

 

 

220,303

 

 

 

1,313

 

 

 

2.40

 

 

 

233,625

 

 

 

1,530

 

 

 

2.66

 

Securities held to maturity

 

 

144,531

 

 

 

956

 

 

 

2.66

 

 

 

162,121

 

 

 

1,028

 

 

 

2.57

 

Nonmarketable equity securities

 

 

9,221

 

 

 

114

 

 

 

4.97

 

 

 

12,128

 

 

 

170

 

 

 

5.68

 

Interest-bearing deposits in other banks

 

 

75,677

 

 

 

352

 

 

 

1.87

 

 

 

57,240

 

 

 

335

 

 

 

2.37

 

Total interest-earning assets

 

 

2,151,257

 

 

 

25,252

 

 

 

4.72

 

 

 

2,116,722

 

 

 

25,307

 

 

 

4.85

 

Allowance for loan losses(2)

 

 

(20,781

)

 

 

 

 

 

 

 

 

 

 

(14,906

)

 

 

 

 

 

 

 

 

Noninterest-earnings assets

 

 

195,142

 

 

 

 

 

 

 

 

 

 

 

188,917

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,325,618

 

 

 

 

 

 

 

 

 

 

$

2,290,733

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

1,475,507

 

 

$

4,421

 

 

 

1.21

%

 

$

1,458,261

 

 

$

5,673

 

 

 

1.58

%

Advances from FHLB and fed funds purchased

 

 

23,236

 

 

 

82

 

 

 

1.42

 

 

 

74,700

 

 

 

447

 

 

 

2.43

 

Other debt

 

 

3,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated debentures

 

 

10,810

 

 

 

171

 

 

 

6.36

 

 

 

10,310

 

 

 

169

 

 

 

6.65

 

Securities sold under agreements to repurchase

 

 

12,827

 

 

 

9

 

 

 

0.28

 

 

 

11,065

 

 

 

11

 

 

 

0.40

 

Total interest-bearing liabilities

 

 

1,525,787

 

 

 

4,683

 

 

 

1.23

 

 

 

1,554,336

 

 

 

6,300

 

 

 

1.64

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

524,263

 

 

 

 

 

 

 

 

 

 

 

475,890

 

 

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

 

21,649

 

 

 

 

 

 

 

 

 

 

 

22,893

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

545,912

 

 

 

 

 

 

 

 

 

 

 

498,783

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

253,919

 

 

 

 

 

 

 

 

 

 

 

237,614

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

2,325,618

 

 

 

 

 

 

 

 

 

 

$

2,290,733

 

 

 

 

 

 

 

 

 

Net interest rate spread(3)

 

 

 

 

 

 

 

 

 

 

3.49

%

 

 

 

 

 

 

 

 

 

 

3.21

%

Net interest income

 

 

 

 

 

$

20,569

 

 

 

 

 

 

 

 

 

 

$

19,007

 

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

 

 

 

3.85

%

 

 

 

 

 

 

 

 

 

 

3.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes average outstanding balances of loans held for sale of $2.4 million and $1.3 million for the three months ended March 31, 2020 and 2019, respectively.

 

(2) The average allowance for loan losses balance for the period ended March 31, 2020 includes the impact of adopting ASC 326.

 

(3) Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

 

(4) 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 3.87% and 3.64% for the three months ended March 31, 2020 and 2019, respectively, 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)

 

 

 

As of

 

 

 

2020

 

 

2019

 

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

Total shareholders’ equity

 

$

252,691

 

 

$

261,551

 

 

$

255,905

 

 

$

250,121

 

 

$

250,310

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(32,160

)

 

 

(32,160

)

 

 

(32,160

)

 

 

(32,160

)

 

 

(32,160

)

Core deposit intangible, net

 

 

(3,639

)

 

 

(3,853

)

 

 

(4,066

)

 

 

(4,279

)

 

 

(4,493

)

Total tangible common equity

 

$

216,892

 

 

$

225,538

 

 

$

219,679

 

 

$

213,682

 

 

$

213,657

 

Common shares outstanding - end of quarter(1)

 

 

11,128,556

 

 

 

11,547,443

 

 

 

11,534,393

 

 

 

11,560,058

 

 

 

11,803,786

 

Book value per common share

 

$

22.71

 

 

$

22.65

 

 

$

22.19

 

 

$

21.64

 

 

$

21.21

 

Tangible book value per common share

 

 

19.49

 

 

 

19.53

 

 

 

19.05

 

 

 

18.48

 

 

 

18.10

 

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

 

About Non-GAAP Financial Measures

Certain of the financial measures and ratios we present, including “tangible book value per share” are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.

These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.

A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

About Guaranty Bancshares, Inc.

Guaranty Bancshares, Inc. is a bank holding company that conducts commercial banking activities through its wholly-owned subsidiary, Guaranty Bank & Trust, N.A. As one of the oldest regional community banks in Texas, Guaranty Bank & Trust provides its customers with a full array of relationship-driven commercial and consumer banking products and services, as well as mortgage, trust, and wealth management services. Guaranty Bank & Trust has 32 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 March 31, 2020, Guaranty Bancshares, Inc. had total assets of $2.4 billion, total loans of $1.7 billion and total deposits of $2.0 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.

 

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

Source: Guaranty Bancshares, Inc.