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 September 30, 2019. The company's net income available to common shareholders was $7.5 million, or $0.65 per basic share, for the quarter ended September 30, 2019, compared to $6.0 million, or $0.52 per basic share, for the quarter ended June 30, 2019 and $5.1 million, or $0.43 per basic share, for the quarter ended September 30, 2018. In addition to increased net income, earnings per basic share during the third quarter of 2019 compared to the same period in 2018 were impacted by our repurchase of 486,462 shares of common stock between October 1, 2018 and September 30, 2019. Return on average assets and average equity for the third quarter of 2019 were 1.28% and 11.73%, respectively, compared to 1.05% and 9.97%, respectively, for the second quarter of 2019 and 0.91% and 8.39%, respectively, for the third quarter of 2018.
"We had a strong third quarter and are very satisfied with the financial results. We continue to focus on our strategic initiatives to improve net interest margin and efficiencies, which are apparent in the third quarter earnings results and the 10 and 20 basis point increases in net margin from the second quarter of 2019 and same quarter in 2018, respectively. Loan growth has slowed in recent quarters, however we believe this is prudent to maintain strong asset quality as we continue to move further into this long economic cycle. Companywide, we emphasize building banking relationships that are meaningful to our overall balance sheet and good for our customers and communities. We will continue to execute on our stock repurchase plan when we see our stock valuation as attractive and representing a good long-term value for our stakeholders," commented Ty Abston, the company's Chairman and Chief Executive Officer.
The company’s increase in net earnings in the third quarter of 2019, as compared to the third quarter of 2018, was primarily attributable to an increase in net interest income, before the provision for loan losses, of $1.9 million and an increase in noninterest income of $1.1 million. This was partially offset by an increase in noninterest expense of $408,000 and income tax provision of $474,000. These factors impacting net earnings are discussed in more detail below.
Net interest income, before the provision for loan losses, in the third quarter of 2019 and 2018 was $20.1 million and $18.2 million, respectively, an increase of $1.9 million, or 10.2%. Net interest margin, on a taxable equivalent basis, for the third quarter of 2019 and 2018 was 3.71% and 3.51%, respectively. Our net interest income was positively affected by achieving higher increases in loan yields than for deposit costs. During the period, our loan yield increased from 5.12% for the third quarter of 2018 to 5.37% for the third quarter of 2019, a change of 25 basis points, while our interest bearing deposit costs increased from 1.35% to 1.43% during the same period, a change of only eight basis points. Net interest margin increased from 3.61% in the second quarter of 2019 to 3.71% in the third quarter of 2019, primarily due to decreases in the cost of interest-bearing liabilities.
The provision for loan losses was $100,000 in the third quarter of 2019, compared to $575,000 in the second quarter of 2019 and $500,000 in the third quarter of 2018. The provision for loan losses is primarily reflective of organic growth during the respective periods, however, a recovery of $487,000 was received during the quarter 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 quarter of 2019. Nonperforming assets as a percentage of total loans were 0.69% at September 30, 2019, compared to 0.64% at June 30, 2019, and 0.69% at September 30, 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 $5.7 million as of September 30, 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 in the future. Excluding these partially SBA guaranteed loans, non-performing assets as a percentage of total loans at September 30, 2019 would be 0.36%.
Noninterest income increased $1.1 million, or 30.1%, in the third quarter of 2019, to $4.6 million, compared to $3.5 million for the quarter ended September 30, 2018. The increase from the same quarter in 2018 was due primarily to an increase in the gain on sales of loans of $273,000, or 42.9%, an increase of $159,000, or 17.0%, in merchant and debit card fees, a $90,000, or 57.3%, increase in bank-owned life insurance income and an $88,000, or 75.4%, increase in mortgage loan origination and fee income during the third quarter of 2019. There were also valuation adjustments and losses on sales of repossessed assets during the third quarter of 2018 that reduced other noninterest income by $594,000, which were not present in the third quarter of 2019.
Noninterest income increased $506,000, or 12.3%, to $4.6 million in the third quarter of 2019, compared to $4.1 million for the quarter ended June 30, 2019. The increase was primarily attributable to an increase in the gain on sale of loans of $227,000, or 33.2% from the prior quarter, an increase in bank-owned life insurance income of $92,000, or 59.4%, and an increase in service charge income of $89,000, or 10.0%. Other increases resulted from gains of $27,000, or 2.5%, in merchant and debit card fees and an increase of $28,000, or 3.7%, in other noninterest income during the third quarter of 2019.
Noninterest expense increased $408,000, or 2.7%, in the third quarter of 2019, compared to the third quarter of 2018. The increase in noninterest expense in the third quarter of 2019 was primarily driven by an increase in employee compensation and benefits expense to $8.9 million, a change of $740,000 from the same quarter of the prior year due to annual salary increases and 22 employees added to support operational growth. Occupancy expenses also increased $231,000, from $2.2 million in the third quarter of 2018, to $2.4 million in the third quarter of 2019. The increase in occupancy expense resulted primarily from relocating into a new permanent location in Austin, as well as a new location and corporate offices in Addison, Texas. Software and technology expenses increased by $249,000, or 39.2% compared to the same quarter of the prior year. These increases in noninterest expense were partially offset by decreases in other noninterest expense of $364,000, or 24.1% and a $262,000, or 27.6%, decrease in legal and professional fees compared to the same quarter of the prior year. The company’s efficiency ratio in the third quarter of 2019 was 62.49%, compared to 69.00% in the same quarter last year.
Noninterest expense increased $41,000, or 0.3%, in the third quarter of 2019 to $15.4 million, compared to the quarter ended June 30, 2019. The increase was primarily due to a $203,000, or 2.3% increase in employee compensation and benefits in the current quarter. This was partially offset by a decrease in FDIC insurance assessment fees from $140,000 in the previous quarter to none in the third quarter of 2019. The company’s efficiency ratio in the third quarter of 2019 was 62.49%, compared to 65.74% in the prior quarter.
Consolidated assets for the company totaled $2.33 billion at September 30, 2019 and June 30, 2019, compared to $2.24 billion at September 30, 2018. Gross loans increased 2.5%, or $42.6 million, to $1.74 billion at September 30, 2019, compared to loans of $1.69 billion at June 30, 2019. Gross loans increased 5.1%, or $84.6 million, from $1.65 billion at September 30, 2018. Deposits decreased by 1.0%, or $20.7 million, to $1.96 billion at September 30, 2019, compared to $1.98 billion at June 30, 2019. Total deposits increased 6.9%, or $126.0 million, from $1.84 billion at September 30, 2018. Changes in gross loans and deposits during these periods resulted from organic growth or from regular fluctuations in customer deposit account balances. Shareholders' equity totaled $255.9 million as of September 30, 2019, compared to $250.1 million at June 30, 2019 and $242.0 million at September 30, 2018. The increase from the previous quarter and from the third quarter of 2018 resulted primarily from increases in operating earnings, partially offset by the repurchase of common stock and payment of dividends during the period.
Guaranty Bancshares, Inc. |
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Consolidated Financial Summary (Unaudited) |
||||||||||||||||||||
(In thousands, except share and per share data) |
||||||||||||||||||||
|
|
As of |
|
|||||||||||||||||
|
|
2019 |
|
|
2018 |
|
||||||||||||||
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
42,051 |
|
|
$ |
34,823 |
|
|
$ |
40,915 |
|
|
$ |
44,471 |
|
|
$ |
38,483 |
|
Federal funds sold |
|
|
14,250 |
|
|
|
46,450 |
|
|
|
58,000 |
|
|
|
20,275 |
|
|
|
10,700 |
|
Interest-bearing deposits |
|
|
2,347 |
|
|
|
11,162 |
|
|
|
9,389 |
|
|
|
6,764 |
|
|
|
4,868 |
|
Total cash and cash equivalents |
|
|
58,648 |
|
|
|
92,435 |
|
|
|
108,304 |
|
|
|
71,510 |
|
|
|
54,051 |
|
Securities available for sale |
|
|
221,345 |
|
|
|
228,714 |
|
|
|
236,979 |
|
|
|
232,975 |
|
|
|
232,378 |
|
Securities held to maturity |
|
|
156,925 |
|
|
|
158,915 |
|
|
|
160,980 |
|
|
|
163,164 |
|
|
|
164,839 |
|
Loans held for sale |
|
|
3,841 |
|
|
|
4,052 |
|
|
|
1,222 |
|
|
|
1,795 |
|
|
|
826 |
|
Loans, net |
|
|
1,720,595 |
|
|
|
1,678,705 |
|
|
|
1,640,979 |
|
|
|
1,645,444 |
|
|
|
1,638,149 |
|
Accrued interest receivable |
|
|
7,825 |
|
|
|
9,098 |
|
|
|
8,245 |
|
|
|
9,292 |
|
|
|
7,760 |
|
Premises and equipment, net |
|
|
52,956 |
|
|
|
52,606 |
|
|
|
52,378 |
|
|
|
52,227 |
|
|
|
52,660 |
|
Other real estate owned |
|
|
551 |
|
|
|
535 |
|
|
|
632 |
|
|
|
751 |
|
|
|
1,783 |
|
Cash surrender value of life insurance |
|
|
34,280 |
|
|
|
34,039 |
|
|
|
26,458 |
|
|
|
26,301 |
|
|
|
25,747 |
|
Deferred tax asset |
|
|
2,363 |
|
|
|
2,050 |
|
|
|
2,167 |
|
|
|
3,209 |
|
|
|
3,237 |
|
Core deposit intangible, net |
|
|
4,066 |
|
|
|
4,279 |
|
|
|
4,493 |
|
|
|
4,706 |
|
|
|
4,919 |
|
Goodwill |
|
|
32,160 |
|
|
|
32,160 |
|
|
|
32,160 |
|
|
|
32,160 |
|
|
|
32,160 |
|
Other assets |
|
|
30,467 |
|
|
|
35,039 |
|
|
|
33,994 |
|
|
|
23,436 |
|
|
|
24,071 |
|
Total assets |
|
$ |
2,326,022 |
|
|
$ |
2,332,627 |
|
|
$ |
2,308,991 |
|
|
$ |
2,266,970 |
|
|
$ |
2,242,580 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
528,301 |
|
|
$ |
498,349 |
|
|
$ |
490,206 |
|
|
$ |
489,789 |
|
|
$ |
479,405 |
|
Interest-bearing |
|
|
1,435,012 |
|
|
|
1,485,641 |
|
|
|
1,472,095 |
|
|
|
1,381,691 |
|
|
|
1,357,934 |
|
Total deposits |
|
|
1,963,313 |
|
|
|
1,983,990 |
|
|
|
1,962,301 |
|
|
|
1,871,480 |
|
|
|
1,837,339 |
|
Securities sold under agreements to repurchase |
|
|
11,363 |
|
|
|
10,814 |
|
|
|
11,542 |
|
|
|
12,228 |
|
|
|
11,107 |
|
Accrued interest and other liabilities |
|
|
23,508 |
|
|
|
24,265 |
|
|
|
22,397 |
|
|
|
10,733 |
|
|
|
10,187 |
|
Federal Home Loan Bank advances |
|
|
60,623 |
|
|
|
52,127 |
|
|
|
50,131 |
|
|
|
115,136 |
|
|
|
129,140 |
|
Subordinated debentures |
|
|
11,310 |
|
|
|
11,310 |
|
|
|
12,310 |
|
|
|
12,810 |
|
|
|
12,810 |
|
Total liabilities |
|
|
2,070,117 |
|
|
|
2,082,506 |
|
|
|
2,058,681 |
|
|
|
2,022,387 |
|
|
|
2,000,583 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
|
255,905 |
|
|
|
250,121 |
|
|
|
250,310 |
|
|
|
244,583 |
|
|
|
241,997 |
|
Total liabilities and shareholders' equity |
|
$ |
2,326,022 |
|
|
$ |
2,332,627 |
|
|
$ |
2,308,991 |
|
|
$ |
2,266,970 |
|
|
$ |
2,242,580 |
|
Guaranty Bancshares, Inc. |
||||||||||||||||||||
Consolidated Financial Summary (Unaudited) |
||||||||||||||||||||
(In thousands, except share and per share data) |
||||||||||||||||||||
|
|
Quarter Ended |
|
|||||||||||||||||
|
|
2019 |
|
|
2018 |
|
||||||||||||||
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|||||
INCOME STATEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
25,853 |
|
|
$ |
25,553 |
|
|
$ |
25,307 |
|
|
$ |
24,719 |
|
|
$ |
23,675 |
|
Interest expense |
|
|
5,770 |
|
|
|
6,267 |
|
|
|
6,300 |
|
|
|
5,863 |
|
|
|
5,446 |
|
Net interest income |
|
|
20,083 |
|
|
|
19,286 |
|
|
|
19,007 |
|
|
|
18,856 |
|
|
|
18,229 |
|
Provision for loan losses |
|
|
100 |
|
|
|
575 |
|
|
|
575 |
|
|
|
500 |
|
|
|
500 |
|
Net interest income after provision for loan losses |
|
|
19,983 |
|
|
|
18,711 |
|
|
|
18,432 |
|
|
|
18,356 |
|
|
|
17,729 |
|
Noninterest income |
|
|
4,616 |
|
|
|
4,110 |
|
|
|
3,562 |
|
|
|
4,173 |
|
|
|
3,549 |
|
Noninterest expense |
|
|
15,435 |
|
|
|
15,394 |
|
|
|
15,470 |
|
|
|
14,544 |
|
|
|
15,027 |
|
Income before income taxes |
|
|
9,164 |
|
|
|
7,427 |
|
|
|
6,524 |
|
|
|
7,985 |
|
|
|
6,251 |
|
Income tax provision |
|
|
1,634 |
|
|
|
1,384 |
|
|
|
1,187 |
|
|
|
1,473 |
|
|
|
1,160 |
|
Net earnings |
|
$ |
7,530 |
|
|
$ |
6,043 |
|
|
$ |
5,337 |
|
|
$ |
6,512 |
|
|
$ |
5,091 |
|
PER COMMON SHARE DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share, basic |
|
$ |
0.65 |
|
|
$ |
0.52 |
|
|
$ |
0.45 |
|
|
$ |
0.55 |
|
|
$ |
0.43 |
|
Earnings per common share, diluted |
|
|
0.65 |
|
|
|
0.52 |
|
|
|
0.45 |
|
|
|
0.55 |
|
|
|
0.42 |
|
Cash dividends per common share |
|
|
0.18 |
|
|
|
0.17 |
|
|
|
0.17 |
|
|
|
0.17 |
|
|
|
0.15 |
|
Book value per common share - end of quarter |
|
|
22.19 |
|
|
|
21.64 |
|
|
|
21.21 |
|
|
|
20.68 |
|
|
|
20.23 |
|
Tangible book value per common share - end of quarter(1) |
|
|
19.05 |
|
|
|
18.48 |
|
|
|
18.10 |
|
|
|
17.56 |
|
|
|
17.13 |
|
Common shares outstanding - end of quarter |
|
|
11,534,393 |
|
|
|
11,560,058 |
|
|
|
11,803,786 |
|
|
|
11,829,868 |
|
|
|
11,964,472 |
|
Weighted-average common shares outstanding, basic |
|
|
11,550,335 |
|
|
|
11,659,513 |
|
|
|
11,815,966 |
|
|
|
11,888,817 |
|
|
|
11,962,654 |
|
Weighted-average common shares outstanding, diluted |
|
|
11,612,873 |
|
|
|
11,730,058 |
|
|
|
11,859,458 |
|
|
|
11,951,271 |
|
|
|
12,033,434 |
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (annualized) |
|
|
1.28 |
% |
|
|
1.05 |
% |
|
|
0.94 |
% |
|
|
1.15 |
% |
|
|
0.91 |
% |
Return on average equity (annualized) |
|
|
11.73 |
|
|
|
9.97 |
|
|
|
9.11 |
|
|
|
10.67 |
|
|
|
8.39 |
|
Net interest margin (annualized)(2) |
|
|
3.71 |
|
|
|
3.61 |
|
|
|
3.64 |
|
|
|
3.58 |
|
|
|
3.51 |
|
Efficiency ratio(3) |
|
|
62.49 |
|
|
|
65.74 |
|
|
|
68.55 |
|
|
|
63.16 |
|
|
|
69.00 |
|
(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. |
Guaranty Bancshares, Inc. |
||||||||||||||||||||
Selected Financial Data (Unaudited) |
||||||||||||||||||||
(In thousands) |
||||||||||||||||||||
|
|
As of |
|
|||||||||||||||||
|
|
2019 |
|
|
2018 |
|
||||||||||||||
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|||||
LOAN PORTFOLIO COMPOSITION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
299,714 |
|
|
$ |
286,190 |
|
|
$ |
246,176 |
|
|
$ |
261,779 |
|
|
$ |
248,758 |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
|
256,459 |
|
|
|
231,167 |
|
|
|
250,852 |
|
|
|
237,503 |
|
|
|
229,307 |
|
Commercial real estate |
|
|
581,742 |
|
|
|
592,945 |
|
|
|
581,926 |
|
|
|
582,519 |
|
|
|
599,153 |
|
Farmland |
|
|
61,073 |
|
|
|
71,009 |
|
|
|
72,274 |
|
|
|
67,845 |
|
|
|
65,209 |
|
1-4 family residential |
|
|
406,880 |
|
|
|
391,789 |
|
|
|
390,618 |
|
|
|
393,067 |
|
|
|
392,456 |
|
Multi-family residential |
|
|
58,198 |
|
|
|
44,699 |
|
|
|
37,430 |
|
|
|
38,386 |
|
|
|
38,523 |
|
Consumer |
|
|
53,315 |
|
|
|
56,099 |
|
|
|
56,158 |
|
|
|
54,777 |
|
|
|
53,947 |
|
Agricultural |
|
|
18,728 |
|
|
|
19,721 |
|
|
|
19,994 |
|
|
|
23,277 |
|
|
|
24,184 |
|
Overdrafts |
|
|
330 |
|
|
|
228 |
|
|
|
275 |
|
|
|
382 |
|
|
|
326 |
|
Total loans(1)(2) |
|
$ |
1,736,439 |
|
|
$ |
1,693,847 |
|
|
$ |
1,655,703 |
|
|
$ |
1,659,535 |
|
|
$ |
1,651,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|||||||||||||||||
|
|
2019 |
|
|
2018 |
|
||||||||||||||
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|||||
ALLOWANCE FOR LOAN LOSSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
15,743 |
|
|
$ |
15,190 |
|
|
$ |
14,651 |
|
|
$ |
14,441 |
|
|
$ |
13,890 |
|
Loans charged-off |
|
|
(67 |
) |
|
|
(87 |
) |
|
|
(78 |
) |
|
|
(507 |
) |
|
|
(94 |
) |
Recoveries |
|
|
618 |
|
|
|
65 |
|
|
|
42 |
|
|
|
217 |
|
|
|
145 |
|
Provision for loan losses |
|
|
100 |
|
|
|
575 |
|
|
|
575 |
|
|
|
500 |
|
|
|
500 |
|
Balance at end of period |
|
$ |
16,394 |
|
|
$ |
15,743 |
|
|
$ |
15,190 |
|
|
$ |
14,651 |
|
|
$ |
14,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses / period-end loans |
|
|
0.94 |
% |
|
|
0.93 |
% |
|
|
0.92 |
% |
|
|
0.88 |
% |
|
|
0.87 |
% |
Allowance for loan losses / nonperforming loans |
|
|
150.7 |
|
|
|
163.2 |
|
|
|
419.2 |
|
|
|
248.7 |
|
|
|
166.8 |
|
Net charge-offs / average loans (annualized) |
|
|
(0.13 |
) |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.07 |
|
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans (3) |
|
$ |
10,881 |
|
|
$ |
9,645 |
|
|
$ |
3,624 |
|
|
$ |
5,891 |
|
|
$ |
8,657 |
|
Other real estate owned |
|
|
551 |
|
|
|
535 |
|
|
|
632 |
|
|
|
751 |
|
|
|
1,783 |
|
Repossessed assets owned |
|
|
500 |
|
|
|
612 |
|
|
|
948 |
|
|
|
971 |
|
|
|
986 |
|
Total non-performing assets |
|
$ |
11,932 |
|
|
$ |
10,792 |
|
|
$ |
5,204 |
|
|
$ |
7,613 |
|
|
$ |
11,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets as a percentage of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans(1)(3) |
|
|
0.69 |
% |
|
|
0.64 |
% |
|
|
0.31 |
% |
|
|
0.46 |
% |
|
|
0.69 |
% |
Total assets |
|
|
0.51 |
|
|
|
0.46 |
|
|
|
0.23 |
|
|
|
0.34 |
|
|
|
0.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructured loans-nonaccrual |
|
$ |
118 |
|
|
$ |
119 |
|
|
$ |
487 |
|
|
$ |
335 |
|
|
$ |
— |
|
Restructured loans-accruing |
|
|
7,297 |
|
|
|
2,278 |
|
|
|
671 |
|
|
|
861 |
|
|
|
727 |
|
(1) |
Excludes outstanding balances of loans held for sale of $3.8 million, $4.1 million, $1.2 million, $1.8 million, and $826,000 as of September 30, June 30, and March 31, 2019, and December 31, and September 30, 2018, respectively. |
|
(2) |
Excludes deferred loan fees of $550,000, $601,000, $466,000, $560,000, and $727,000 as of September 30, June 30, and March 31, 2019, and December 31, and September 30, 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 |
|
||||||||||||||
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|||||
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges |
|
$ |
978 |
|
|
$ |
889 |
|
|
$ |
826 |
|
|
$ |
939 |
|
|
$ |
921 |
|
Net realized gain (loss) on securities transactions |
|
|
— |
|
|
|
(22 |
) |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Net realized gain on sale of loans |
|
|
910 |
|
|
|
683 |
|
|
|
477 |
|
|
|
437 |
|
|
|
637 |
|
Fiduciary income |
|
|
446 |
|
|
|
434 |
|
|
|
425 |
|
|
|
408 |
|
|
|
402 |
|
Bank-owned life insurance income |
|
|
247 |
|
|
|
155 |
|
|
|
158 |
|
|
|
152 |
|
|
|
157 |
|
Merchant and debit card fees |
|
|
1,096 |
|
|
|
1,069 |
|
|
|
959 |
|
|
|
1,005 |
|
|
|
937 |
|
Loan processing fee income |
|
|
157 |
|
|
|
148 |
|
|
|
128 |
|
|
|
131 |
|
|
|
158 |
|
Other noninterest income |
|
|
782 |
|
|
|
754 |
|
|
|
589 |
|
|
|
1,101 |
|
|
|
336 |
|
Total noninterest income |
|
$ |
4,616 |
|
|
$ |
4,110 |
|
|
$ |
3,562 |
|
|
$ |
4,173 |
|
|
$ |
3,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
$ |
8,896 |
|
|
$ |
8,693 |
|
|
$ |
8,986 |
|
|
$ |
8,399 |
|
|
$ |
8,156 |
|
Occupancy expenses |
|
|
2,448 |
|
|
|
2,437 |
|
|
|
2,451 |
|
|
|
2,322 |
|
|
|
2,217 |
|
Legal and professional fees |
|
|
686 |
|
|
|
687 |
|
|
|
626 |
|
|
|
531 |
|
|
|
948 |
|
Software and technology |
|
|
885 |
|
|
|
772 |
|
|
|
782 |
|
|
|
653 |
|
|
|
636 |
|
Amortization |
|
|
342 |
|
|
|
349 |
|
|
|
349 |
|
|
|
347 |
|
|
|
349 |
|
Director and committee fees |
|
|
220 |
|
|
|
226 |
|
|
|
239 |
|
|
|
227 |
|
|
|
255 |
|
Advertising and promotions |
|
|
339 |
|
|
|
408 |
|
|
|
385 |
|
|
|
416 |
|
|
|
335 |
|
ATM and debit card expense |
|
|
310 |
|
|
|
303 |
|
|
|
278 |
|
|
|
270 |
|
|
|
289 |
|
Telecommunication expense |
|
|
165 |
|
|
|
169 |
|
|
|
174 |
|
|
|
173 |
|
|
|
170 |
|
FDIC insurance assessment fees |
|
|
— |
|
|
|
140 |
|
|
|
33 |
|
|
|
146 |
|
|
|
164 |
|
Other noninterest expense |
|
|
1,144 |
|
|
|
1,210 |
|
|
|
1,167 |
|
|
|
1,060 |
|
|
|
1,508 |
|
Total noninterest expense |
$ |
15,435 |
$ |
15,394 |
$ |
15,470 |
$ |
14,544 |
$ |
15,027 |
||||||||||
Guaranty Bancshares, Inc. |
||||||||||||||||||||||||
Selected Financial Data (Unaudited) |
||||||||||||||||||||||||
(In thousands) |
||||||||||||||||||||||||
|
|
For the Three Months Ended September 30, |
|
|||||||||||||||||||||
|
|
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) |
|
$ |
1,698,742 |
|
|
$ |
22,996 |
|
|
|
5.37 |
% |
|
$ |
1,618,199 |
|
|
$ |
20,879 |
|
|
|
5.12 |
% |
Securities available for sale |
|
|
225,714 |
|
|
|
1,371 |
|
|
|
2.41 |
|
|
|
239,993 |
|
|
|
1,465 |
|
|
|
2.42 |
|
Securities held to maturity |
|
|
158,000 |
|
|
|
1,001 |
|
|
|
2.51 |
|
|
|
166,080 |
|
|
|
1,026 |
|
|
|
2.45 |
|
Nonmarketable equity securities |
|
|
12,011 |
|
|
|
162 |
|
|
|
5.35 |
|
|
|
10,351 |
|
|
|
115 |
|
|
|
4.41 |
|
Interest-bearing deposits in other banks |
|
|
56,174 |
|
|
|
323 |
|
|
|
2.28 |
|
|
|
32,545 |
|
|
|
190 |
|
|
|
2.32 |
|
Total interest-earning assets |
|
|
2,150,641 |
|
|
|
25,853 |
|
|
|
4.77 |
|
|
|
2,067,168 |
|
|
|
23,675 |
|
|
|
4.54 |
|
Allowance for loan losses |
|
|
(16,082 |
) |
|
|
|
|
|
|
|
|
|
|
(14,096 |
) |
|
|
|
|
|
|
|
|
Noninterest-earnings assets |
|
|
194,044 |
|
|
|
|
|
|
|
|
|
|
|
182,587 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,328,603 |
|
|
|
|
|
|
|
|
|
|
$ |
2,235,659 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
1,467,502 |
|
|
$ |
5,304 |
|
|
|
1.43 |
% |
|
$ |
1,375,138 |
|
|
$ |
4,670 |
|
|
|
1.35 |
% |
Advances from FHLB and fed funds purchased |
|
|
50,016 |
|
|
|
298 |
|
|
|
2.36 |
|
|
|
117,758 |
|
|
|
593 |
|
|
|
2.00 |
|
Subordinated debentures |
|
|
11,527 |
|
|
|
161 |
|
|
|
5.54 |
|
|
|
12,821 |
|
|
|
173 |
|
|
|
5.35 |
|
Securities sold under agreements to repurchase |
|
|
10,549 |
|
|
|
7 |
|
|
|
0.26 |
|
|
|
12,571 |
|
|
|
10 |
|
|
|
0.32 |
|
Total interest-bearing liabilities |
|
|
1,539,594 |
|
|
|
5,770 |
|
|
|
1.49 |
|
|
|
1,518,288 |
|
|
|
5,446 |
|
|
|
1.42 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
511,343 |
|
|
|
|
|
|
|
|
|
|
|
465,838 |
|
|
|
|
|
|
|
|
|
Accrued interest and other liabilities |
|
|
22,878 |
|
|
|
|
|
|
|
|
|
|
|
8,705 |
|
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
534,221 |
|
|
|
|
|
|
|
|
|
|
|
474,543 |
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
254,788 |
|
|
|
|
|
|
|
|
|
|
|
242,828 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
2,328,603 |
|
|
|
|
|
|
|
|
|
|
$ |
2,235,659 |
|
|
|
|
|
|
|
|
|
Net interest rate spread(2) |
|
|
|
|
|
|
|
|
|
|
3.28 |
% |
|
|
|
|
|
|
|
|
|
|
3.12 |
% |
Net interest income |
|
|
|
|
|
$ |
20,083 |
|
|
|
|
|
|
|
|
|
|
$ |
18,229 |
|
|
|
|
|
Net interest margin(3) |
|
|
|
|
|
|
|
|
|
|
3.71 |
% |
|
|
|
|
|
|
|
|
|
|
3.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes average outstanding balances of loans held for sale of $3.0 million and $1.9 million for the three months ended September 30, 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 3.71% and 3.51% for the three months ended September 30, 2019 and 2018, respectively. |
||||||||||||||||||||||||
Guaranty Bancshares, Inc. |
||||||||||||||||||||||||
Selected Financial Data (Unaudited) |
||||||||||||||||||||||||
(In thousands) |
||||||||||||||||||||||||
|
|
For the Nine Months Ended September 30, |
|
|||||||||||||||||||||
|
|
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) |
|
$ |
1,676,047 |
|
|
$ |
67,821 |
|
|
|
5.41 |
% |
|
$ |
1,483,961 |
|
|
$ |
55,377 |
|
|
|
4.99 |
% |
Securities available for sale |
|
|
230,816 |
|
|
|
4,372 |
|
|
|
2.53 |
|
|
|
237,619 |
|
|
|
4,400 |
|
|
|
2.48 |
|
Securities held to maturity |
|
|
160,061 |
|
|
|
3,042 |
|
|
|
2.54 |
|
|
|
169,211 |
|
|
|
3,125 |
|
|
|
2.47 |
|
Nonmarketable equity securities |
|
|
12,106 |
|
|
|
471 |
|
|
|
5.20 |
|
|
|
8,826 |
|
|
|
300 |
|
|
|
4.54 |
|
Interest-bearing deposits in other banks |
|
|
56,755 |
|
|
|
1,007 |
|
|
|
2.37 |
|
|
|
35,437 |
|
|
|
537 |
|
|
|
2.03 |
|
Total interest-earning assets |
|
|
2,135,785 |
|
|
|
76,713 |
|
|
|
4.80 |
|
|
|
1,935,054 |
|
|
|
63,739 |
|
|
|
4.40 |
|
Allowance for loan losses |
|
|
(15,483 |
) |
|
|
|
|
|
|
|
|
|
|
(13,589 |
) |
|
|
|
|
|
|
|
|
Noninterest-earning assets |
|
|
191,189 |
|
|
|
|
|
|
|
|
|
|
|
161,855 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,311,491 |
|
|
|
|
|
|
|
|
|
|
$ |
2,083,320 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
1,463,457 |
|
|
$ |
16,681 |
|
|
|
1.52 |
% |
|
$ |
1,306,244 |
|
|
$ |
11,948 |
|
|
|
1.22 |
% |
Advances from FHLB and fed funds purchased |
|
|
62,268 |
|
|
|
1,126 |
|
|
|
2.42 |
|
|
|
88,200 |
|
|
|
1,181 |
|
|
|
1.79 |
|
Subordinated debentures |
|
|
12,107 |
|
|
|
502 |
|
|
|
5.54 |
|
|
|
13,477 |
|
|
|
516 |
|
|
|
5.12 |
|
Securities sold under agreements to repurchase |
|
|
10,710 |
|
|
|
28 |
|
|
|
0.35 |
|
|
|
12,749 |
|
|
|
34 |
|
|
|
0.36 |
|
Total interest-bearing liabilities |
|
|
1,548,542 |
|
|
|
18,337 |
|
|
|
1.58 |
|
|
|
1,420,670 |
|
|
|
13,679 |
|
|
|
1.29 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
490,088 |
|
|
|
|
|
|
|
|
|
|
|
432,871 |
|
|
|
|
|
|
|
|
|
Accrued interest and other liabilities |
|
|
21,575 |
|
|
|
|
|
|
|
|
|
|
|
7,120 |
|
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
511,663 |
|
|
|
|
|
|
|
|
|
|
|
439,991 |
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
251,286 |
|
|
|
|
|
|
|
|
|
|
|
222,659 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
2,311,491 |
|
|
|
|
|
|
|
|
|
|
$ |
2,083,320 |
|
|
|
|
|
|
|
|
|
Net interest rate spread(2) |
|
|
|
|
|
|
|
|
|
|
3.22 |
% |
|
|
|
|
|
|
|
|
|
|
3.12 |
% |
Net interest income |
|
|
|
|
|
$ |
58,376 |
|
|
|
|
|
|
|
|
|
|
$ |
50,060 |
|
|
|
|
|
Net interest margin(3) |
|
|
|
|
|
|
|
|
|
|
3.65 |
% |
|
|
|
|
|
|
|
|
|
|
3.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes average outstanding balances of loans held for sale of $2.3 million and $1.8 million for the nine months ended September 30, 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 3.66% and 3.47% for the nine months ended September 30, 2019 and 2018, respectively. |
||||||||||||||||||||||||
Guaranty Bancshares, Inc. |
||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures (Unaudited) |
||||||||||||||||||||
(In thousands, except share and per share data) |
||||||||||||||||||||
|
|
As of |
|
|||||||||||||||||
|
|
2019 |
|
|
2018 |
|
||||||||||||||
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|||||
Total shareholders’ equity |
|
$ |
255,905 |
|
|
$ |
250,121 |
|
|
$ |
250,310 |
|
|
$ |
244,583 |
|
|
$ |
241,997 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(32,160 |
) |
|
|
(32,160 |
) |
|
|
(32,160 |
) |
|
|
(32,160 |
) |
|
|
(32,160 |
) |
Core deposit intangible |
|
|
(4,066 |
) |
|
|
(4,279 |
) |
|
|
(4,493 |
) |
|
|
(4,706 |
) |
|
|
(4,919 |
) |
Total tangible common equity |
|
$ |
219,679 |
|
|
$ |
213,682 |
|
|
$ |
213,657 |
|
|
$ |
207,717 |
|
|
$ |
204,918 |
|
Common shares outstanding - end of quarter(1) |
|
|
11,534,393 |
|
|
|
11,560,058 |
|
|
|
11,803,786 |
|
|
|
11,829,868 |
|
|
|
11,964,472 |
|
Book value per common share |
|
$ |
22.19 |
|
|
$ |
21.64 |
|
|
$ |
21.21 |
|
|
$ |
20.68 |
|
|
$ |
20.23 |
|
Tangible book value per common share |
|
|
19.05 |
|
|
|
18.48 |
|
|
|
18.10 |
|
|
|
17.56 |
|
|
|
17.13 |
|
(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 30 banking locations across 24 Texas communities located within the East Texas, Dallas/Fort Worth, greater Houston and Central Texas regions of the state. 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. 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"), and the following factors: business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic market areas; economic, market, operational, liquidity, credit and interest rate risks associated with our business; the composition of our loan portfolio, including deteriorating asset quality and higher loan charge-offs; the laws and regulations applicable to our business; our ability to achieve organic loan and deposit growth and the composition of such growth; increased competition in the financial services industry, nationally, regionally or locally; our ability to maintain our historical earnings trends; our ability to raise additional capital to execute our business plan; acquisitions and integrations of acquired businesses; systems failures or interruptions involving our information technology and telecommunications systems or third-party servicers; the composition of our management team and our ability to attract and retain key personnel; the fiscal position of the U.S. federal government and the soundness of other financial institutions; and the amount of nonperforming and classified assets we hold. 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.
