Guaranty Bancshares, Inc. Reports Third Quarter Financial Results

MOUNT PLEASANT, Texas, Oct. 23, 2017 (GLOBE NEWSWIRE) — Guaranty Bancshares, Inc. (NASDAQ:GNTY), the holding company for Guaranty Bank & Trust, N.A. today reported third quarter 2017 results.  The company’s net income available to common shareholders was $4.1 million, or $0.37 per basic share, for the quarter ended September 30, 2017, compared to $3.4 million, or $0.38 per basic share, for the quarter ended September 30, 2016.  The growth in net income was primarily attributable to growth in net interest income, before the provision for loan losses, of $1.4 million and an increase in noninterest income of $300,000.   Returns on average assets and average equity for the third quarter were 0.87% and 7.99%, respectively, compared to 0.75% and 9.20%, respectively, for the same period during 2016.   The company’s earnings per share and return on average equity were impacted by the issuance of 2,300,000 shares of common stock in the company’s initial public offering, which closed in May 2017.

Net interest income for the third quarter of 2017 and 2016 was $15.1 million and $13.7 million, respectively, an increase of 10.5%.  Net interest margin for the third quarter of 2017 and 2016 was 3.38% and 3.26%, respectively.  Net interest income and net interest margin, on a taxable equivalent basis, was $15.5 million and 3.55%, respectively, for the third quarter of 2017.

The provision for loan losses was $800,000 in the third quarter of 2017, compared with $800,000 in the second quarter of 2017 and $840,000 in the third quarter of 2016.  The provision for loan losses in the third quarter of 2017 remained consistent with the prior year’s quarter despite loan portfolio growth of 6.35% from September 30, 2016, primarily because a large specific reserve was calculated in the third quarter of 2016 that resulted in a higher provision at that time.  The level of provision during the third quarter of 2017 is primarily attributable to specific reserves calculated for certain impaired loans and a slight increase in general reserves due to minor increases in some qualitative factors.  Nonperforming assets as a percentage of total loans were 0.78% at September 30, 2017, compared to 0.71% at June 30, 2017, and 0.94% at September 30, 2016.

Noninterest income increased 8.8% in the third quarter of 2017 to $3.7 million, compared to $3.4 million in the same quarter a year ago.  Merchant and debit card fees increased 12.8% to $778,000, compared to $690,000 in the same quarter last year due to continued growth in net new accounts and debit cards.  Gain on sales of loans increased 21.2%, from $486,000 during the third quarter of 2016 to $589,000 in the third quarter of 2017.  Other categories of noninterest income increased with the continued growth of the bank. 

Noninterest expense for the third quarter of 2017 totaled $12.2 million, compared to $11.5 million for the third quarter of 2016, an increase of 6.0%.   The increase in noninterest expense in the third quarter of 2017 was primarily driven by a $359,000 increase in salary and employee benefit expense when compared to the same quarter a year ago, a $218,000 increase in occupancy expenses and a $211,000 increase in legal and professional fees.  The increase was partially offset by decreases in FDIC insurance expense of $138,000 and other non-interest expenses of $168,000.  The company’s efficiency ratio in the third quarter of 2017 was 64.70%, compared to 67.51% in the same quarter last year.

For the nine months ended September 30, 2017, net income increased 36.1% to $11.6 million from $8.5 million for the same period a year ago.   Basic earnings per share rose to $1.17 for the nine months ended September 30, 2017 from $0.95 during the same period last year.   Net interest income increased 10.9% to $44.1 million for the nine months ended September 30, 2017 from $39.8 million during the same period a year ago.   The provision for loan losses totaled $2.3 million, compared to $3.2 million for the nine months ended September 30, 2016.   Noninterest income was $10.5 million for the nine months ended September 30, 2017, compared to $9.6 million a year ago.   Noninterest expense was $36.1 million for the nine months ended September 30, 2017, compared to $34.3 million during the same period last year. 

As of September 30, 2017, consolidated assets for the company totaled $1.9 billion, compared to $1.8 billion at December 31, 2016 and $1.8 billion at September 30, 2016.  Loans totaled $1.3 billion at quarter end, compared to loans of $1.2 billion at December 31, 2016, and $1.2 billion at September 30, 2016.  Deposits totaled $1.6 billion at September 30, 2017, compared to $1.6 billion at December 31, 2016, and $1.5 billion at September 30, 2016.  Shareholders’ equity rose to $207.3 million as of September 30, 2017, compared to $141.9 million at December 31, 2016, and $148.0 million at September 30, 2016, primarily as a result of operating earnings and the proceeds of the Company’s initial public offering.

The company’s Chairman and Chief Executive Officer, Ty Abston, said, “We are pleased with our third quarter and year-to-date results.  During the third quarter, we also announced our expansion into the growth markets of Austin and Ft. Worth, Texas.  We are very pleased with the initial reception we’ve received in these new markets and feel they will be accretive to Guaranty’s future growth prospects.”

Guaranty Bancshares, Inc.
Consolidated Financial Summary (Unaudited)
(In thousands, except share and per share data)
  As of
  2017   2016
  September 30   June 30   March 31   December 31   September 30
ASSETS                  
Cash and due from banks $ 33,736     $ 36,389     $ 32,576     $ 39,605     $ 31,233  
Federal funds sold 34,250     17,700     83,175     60,600     61,175  
Interest-bearing deposits 27,075     29,217     28,006     27,338     26,891  
Total cash and cash equivalents 95,061     83,306     143,757     127,543     119,299  
Securities available for sale 238,133     246,233     214,463     156,925     143,243  
Securities held to maturity 179,081     182,248     185,837     189,371     193,083  
Loans held for sale 3,400     2,435     1,446     2,563     3,086  
Loans, net 1,294,847     1,284,318     1,241,215     1,233,651     1,218,175  
Accrued interest receivable 6,440     7,631     6,304     7,419     5,904  
Premises and equipment, net 43,958     44,491     44,823     44,810     45,043  
Other real estate owned 1,929     1,733     1,637     1,692     1,384  
Cash surrender value of life insurance 18,376     18,035     17,922     17,804     17,212  
Deferred tax asset 4,267     4,121     4,426     4,892     3,650  
Core deposit intangible, net 2,870     3,016     3,162     3,308     3,453  
Goodwill 18,742     18,742     18,742     18,742     18,742  
Other assets 16,949     16,160     17,465     19,616     20,681  
Total assets $ 1,924,053     $ 1,912,469     $ 1,901,199     $ 1,828,336     $ 1,792,955  
                   
LIABILITIES AND SHAREHOLDERS’ EQUITY                  
Noninterest-bearing deposits $ 405,678     $ 387,725     $ 370,810     $ 358,752     $ 347,876  
Interest-bearing deposits 1,211,624     1,258,648     1,300,361     1,218,039     1,187,485  
Total deposits 1,617,302     1,646,373     1,671,171     1,576,791     1,535,361  
Securities sold under agreements to repurchase 12,920     14,153     12,663     10,859     12,709  
Accrued interest and other liabilities 7,601     7,921     7,595     6,006     6,753  
Other debt         18,929     18,286     9,643  
Federal Home Loan Bank advances 65,157     25,161     25,165     55,170     60,174  
Subordinated debentures 13,810     14,310     19,310     19,310     20,310  
Total liabilities 1,716,790     1,707,918     1,754,833     1,686,422     1,644,950  
Commitments and contingent liabilities:                  
KSOP-owned shares         34,300     31,661     39,923  
                   
Shareholders’ equity 207,263     204,551     146,366     141,914     148,005  
Less: KSOP-owned shares         34,300     31,661     39,923  
Total shareholders’ equity 207,263     204,551     112,066     110,253     108,082  
Total liabilities and shareholders’ equity $ 1,924,053     $ 1,912,469     $ 1,901,199     $ 1,828,336     $ 1,792,955  
                   
  Quarter Ended
  2017   2016
  September 30   June 30   March 31   December 31   September 30
INCOME STATEMENTS                  
Interest income $ 18,165     $ 17,792     $ 17,136     $ 16,717     $ 16,427  
Interest expense 3,063     2,993     2,895     2,692     2,759  
Net interest income 15,102     14,799     14,241     14,025     13,668  
Provision for loan losses 800     800     650     400     840  
Net interest income after provision for loan losses 14,302     13,999     13,591     13,625     12,828  
Noninterest income 3,702     3,516     3,282     3,414     3,402  
Noninterest expense 12,166     11,906     12,045     12,040     11,480  
Income before income taxes 5,838     5,609     4,828     4,999     4,750  
Income tax provision 1,699     1,633     1,312     1,425     1,380  
Net earnings $ 4,139     $ 3,976     $ 3,516     $ 3,574     $ 3,370  
                   
PER COMMON SHARE DATA                  
Earnings per common share, basic $ 0.37     $ 0.40     $ 0.40     $ 0.40     $ 0.38  
Earnings per common share, diluted 0.37     0.39     0.40     0.40     0.38  
Cash dividends per common share 0.13     0.26         0.26      
Book value per common share – end of quarter 18.74     18.50     16.72     16.22     16.53  
Tangible book value per common share – end of quarter(1) 16.79     16.53     14.22     13.70     14.05  
Common shares outstanding – end of quarter 11,058,956     11,058,956     8,753,933     8,751,923     8,955,476  
Weighted-average common shares outstanding, basic 11,058,956     10,019,049     8,751,945     8,968,262     8,955,476  
Weighted-average common shares outstanding, diluted 11,164,429     10,106,825     8,784,410     8,976,328     8,965,057  
                   
PERFORMANCE RATIOS                  
Return on average assets (annualized) 0.87 %   0.85 %   0.76 %   0.79 %   0.75 %
Return on average equity (annualized) 7.99     8.85     9.72     9.68     9.20  
Net interest margin (annualized) 3.38     3.40     3.24     3.32     3.26  
Efficiency ratio (2) 64.70     65.10     68.74     69.04     67.51  
                   
  Nine Months Ended            
  September 30,            
  2017   2016            
INCOME STATEMENTS                  
Interest income $ 53,093     $ 47,991              
Interest expense 8,951     8,176              
Net interest income 44,142     39,815              
Provision for loan losses 2,250     3,240              
Net interest income after provision for loan losses 41,892     36,575              
Noninterest income 10,500     9,602              
Noninterest expense 36,117     34,340              
Income before income taxes 16,275     11,837              
Income tax provision 4,644     3,290              
Net earnings $ 11,631     $ 8,547              
                   
PER COMMON SHARE DATA                  
Earnings per common share, basic $ 1.17     $ 0.95              
Earnings per common share, diluted 1.16     0.95              
Cash dividends per common share 0.39     0.26              
Book value per common share – end of quarter 18.74     16.53              
Common shares outstanding – end of quarter 11,058,956     8,955,476              
Weighted-average common shares outstanding, basic 9,951,767     8,991,671              
Weighted-average common shares outstanding, diluted 10,027,272     9,001,252              
                   
PERFORMANCE RATIOS                  
Return on average assets 0.82 %   0.65 %            
Return on average equity 8.74     7.89              
Net interest margin 3.37     3.25              
Efficiency ratio (2) 66.13     69.47              

(1) See Reconciliation of non-GAAP Financial Measures table
(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
  2017   2016
  September 30   June 30   March 31   December 31   September 30
LOAN PORTFOLIO COMPOSITION                  
Commercial and industrial $ 192,663     $ 217,497     $ 205,903     $ 223,997     $ 224,617  
Real estate:                  
Construction and development 201,067     177,600     152,760     129,366     125,045  
Commercial real estate 393,314     378,722     372,855     367,656     360,676  
Farmland 54,349     63,839     62,130     62,362     61,902  
1-4 family residential 365,889     356,457     360,873     362,952     348,401  
Multi-family residential 23,235     28,833     23,943     26,079     34,538  
Consumer 51,711     51,677     52,816     53,505     54,345  
Agricultural 24,449     21,854     21,473     18,901     19,223  
Overdrafts 698     364     390     317     594  
Total loans(1) $ 1,307,375     $ 1,296,843     $ 1,253,143     $ 1,245,135     $ 1,229,341  
                   
  Quarter Ended
  2017   2016
  September 30   June 30   March 31   December 31   September 30
ALLOWANCE FOR LOAN LOSSES                  
Balance at beginning of period $ 12,525     $ 11,928     $ 11,484     $ 11,166     $ 11,606  
Loans charged-off (929 )   (302 )   (248 )   (243 )   (1,330 )
Recoveries 132     99     42     161     50  
Net charge-offs (797 )   (203 )   (206 )   (82 )   (1,280 )
Provision for loan losses 800     800     650     400     840  
Balance at end of period $ 12,528     $ 12,525     $ 11,928     $ 11,484     $ 11,166  
                   
Allowance for loan losses / period-end loans 0.96 %   0.97 %   0.95 %   0.92 %   0.91 %
Allowance for loan losses / nonperforming loans 217.7     316.4     389.0     260.5     179.4  
Net charge-offs / average loans (annualized) 0.25     0.06     0.07     0.03     0.42  
                   
NON-PERFORMING ASSETS                  
Non-performing loans(2) $ 5,755     $ 3,958     $ 3,066     $ 4,409     $ 6,223  
Other real estate owned 1,929     1,733     1,637     1,692     1,384  
Repossessed assets owned 2,479     3,501     3,526     3,530     3,973  
Total non-performing assets $ 10,163     $ 9,192     $ 8,229     $ 9,631     $ 11,580  
                   
Non-performing assets as a percentage of:                  
Total loans(1) 0.78 %   0.71 %   0.66 %   0.77 %   0.94 %
Total assets 0.53 %   0.48 %   0.43 %   0.53 %   0.65 %
                   
Restructured loans-nonaccrual         42     43     42  
Restructured loans-accruing 316     323     330     462     1,354  
                   
  Quarter Ended
  2017   2016
  September 30   June 30   March 31   December 31   September 30
NONINTEREST INCOME                  
Service charges $ 986     $ 938     $ 877     $ 905     $ 914  
Net realized gain (loss) on securities transactions     25             64  
Net realized gain on sale of loans 589     472     429     487     486  
Fiduciary income 362     343     350     347     364  
Bank-owned life insurance income 116     114     117     116     112  
Merchant and debit card fees 778     791     732     715     690  
Loan processing fee income 146     163     145     149     161  
Other noninterest income 725     670     632     695     611  
Total noninterest income $ 3,702     $ 3,516     $ 3,282     $ 3,414     $ 3,402  
                   
NONINTEREST EXPENSE                  
Employee compensation and benefits $ 6,729     $ 6,440     $ 6,987     $ 6,554     $ 6,370  
Occupancy expenses 1,938     1,866     1,748     1,674     1,720  
Legal and professional fees 692     419     361     577     481  
Software and technology 533     517     483     502     451  
Amortization 258     259     264     261     240  
Director and committee fees 253     248     259     260     222  
Advertising and promotions 303     335     241     263     278  
ATM and debit card expense 253     264     249     228     203  
Telecommunication expense 128     141     143     171     130  
FDIC insurance assessment fees 162     174     191     300     300  
Other noninterest expense 917     1,243     1,119     1,250     1,085  
Total noninterest expense $ 12,166     $ 11,906     $ 12,045     $ 12,040     $ 11,480  
                   
  Nine Months Ended            
  September 30,            
  2017   2016            
NONINTEREST INCOME                  
Service charges $ 2,801     $ 2,625              
Net realized gain (loss) on securities transactions 25     82              
Net realized gain on sale of loans 1,490     1,231              
Fiduciary income 1,055     1,058              
Bank-owned life insurance income 347     337              
Merchant and debit card fees 2,301     2,026              
Loan processing fee income 454     473              
Other noninterest income 2,027     1,770              
Total noninterest income $ 10,500     $ 9,602              
                   
NONINTEREST EXPENSE                  
Employee compensation and benefits $ 20,156     $ 19,057              
Occupancy expenses 5,552     5,196              
Legal and professional fees 1,472     1,358              
Software and technology 1,533     1,368              
Amortization 781     719              
Director and committee fees 760     680              
Advertising and promotions 879     752              
ATM and debit card expense 766     705              
Telecommunication expense 412     438              
FDIC insurance assessment fees 527     900              
Other noninterest expense 3,279     3,167              
Total noninterest expense $ 36,117     $ 34,340              

(1) Excludes outstanding balances of loans held for sale of $3.4 million, $2.4 million, $1.4 million, $2.6 million and $3.1 million as of September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016 and September 30, 2016, respectively.
(2) Restructured loans-nonaccrual are included in nonaccrual loans which are a component of nonperforming loans.

Guaranty Bancshares, Inc.
Selected Financial Data (Unaudited)
(In thousands)
  For the Three Months Ended September 30,
  2017   2016
  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) $ 1,300,307     $ 15,486     4.72 %   $ 1,223,611     $ 14,294     4.65 %
Securities available for sale 245,409     1,376     2.22 %   163,563     709     1.72 %
Securities held to maturity 180,737     1,088     2.39 %   196,003     1,252     2.54 %
Nonmarketable equity securities 6,541     59     3.58 %   8,816     61     2.75 %
Interest-bearing deposits in other banks 40,997     156     1.51 %   75,112     111     0.59 %
Total interest-earning assets 1,773,991     $ 18,165     4.06 %   1,667,105     $ 16,427     3.92 %
Allowance for loan losses (12,492 )           (11,843 )        
Noninterest-earnings assets 145,958             140,087          
Total assets $ 1,907,457             $ 1,795,349          
LIABILITIES AND SHAREHOLDERS’ EQUITY                      
Interest-bearing liabilities:                      
Interest-bearing deposits $ 1,224,991     $ 2,730     0.88 %   $ 1,162,060     $ 2,329     0.80 %
Advances from FHLB and fed funds purchased 50,420     157     1.24 %   93,001     97     0.41 %
Other debt         %   10,000     104     4.14 %
Subordinated debentures 13,821     164     4.71 %   20,310     217     4.25 %
Securities sold under agreements to repurchase 14,262     12     0.33 %   11,952     12     0.40 %
Total interest-bearing liabilities 1,303,494     $ 3,063     0.93 %   1,297,323     $ 2,759     0.85 %
Noninterest-bearing liabilities:                      
Noninterest-bearing deposits 390,043             344,721          
Accrued interest and other liabilities 6,798             6,752          
Total noninterest-bearing liabilities 396,841             351,473          
Shareholders’ equity 207,122             146,553          
Total liabilities and shareholders’ equity $ 1,907,457             $ 1,795,349          
Net interest rate spread(2)         3.13 %           3.07 %
Net interest income     $ 15,102             $ 13,668      
Net interest margin(3)         3.38 %           3.26 %

(1) Includes average outstanding balances of loans held for sale of $2.1 million and $1.7 million for the three months ended September 30, 2017 and 2016, 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.

  For the Nine Months Ended September 30,
  2017   2016
  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) $ 1,269,387     $ 45,115     4.75 %   $ 1,158,807     $ 40,857     4.71 %
Securities available for sale 216,908     3,678     2.27 %   216,744     3,057     1.88 %
Securities held to maturity 184,269     3,340     2.42 %   179,963     3,549     2.63 %
Nonmarketable equity securities 7,012     379     7.23 %   8,452     193     3.05 %
Interest-bearing deposits in other banks 72,948     581     1.06 %   74,525     335     0.60 %
Total interest-earning assets 1,750,524     $ 53,093     4.06 %   1,638,491     $ 47,991     3.91 %
Allowance for loan losses (12,040 )           (10,654 )        
Noninterest-earnings assets 144,937             137,796          
Total assets $ 1,883,421             $ 1,765,633          
LIABILITIES AND SHAREHOLDERS’ EQUITY                      
Interest-bearing liabilities:                      
Interest-bearing deposits $ 1,243,536     $ 7,761     0.83 %   $ 1,169,468     $ 6,791     0.78 %
Advances from FHLB and fed funds purchased 41,661     294     0.94 %   65,503     240     0.49 %
Other debt 8,973     300     4.48 %   13,650     452     4.42 %
Subordinated debentures 16,607     559     4.50 %   20,642     656     4.25 %
Securities sold under agreements to repurchase 12,937     37     0.38 %   12,264     37     0.40 %
Total interest-bearing liabilities 1,323,714     $ 8,951     0.90 %   1,281,527     $ 8,176     0.85 %
Noninterest-bearing liabilities:                      
Noninterest-bearing deposits 375,655             333,640          
Accrued interest and other liabilities 6,650             5,939          
Total noninterest-bearing liabilities 382,305             339,579          
Shareholders’ equity 177,402             144,527          
Total liabilities and shareholders’ equity $ 1,883,421             $ 1,765,633          
Net interest rate spread(2)         3.15 %           3.06 %
Net interest income     $ 44,142             $ 39,815      
Net interest margin(3)         3.37 %           3.25 %

(1) Includes average outstanding balances of loans held for sale of $3.5 million and $3.2 million for the nine months ended September 30, 2017 and 2016, 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.

Guaranty Bancshares, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In thousands, except share and per share data)
  As of
  2017   2016
  September 30   June 30   March 31   December 31   September 30
Total shareholders’ equity, including  KSOP-owned shares $ 207,263     $ 204,551     $ 146,366     $ 141,914     $ 148,005  
Adjustments:                  
Goodwill (18,742 )   (18,742 )   (18,742 )   (18,742 )   (18,742 )
Core deposit and other intangibles (2,870 )   (3,016 )   (3,162 )   (3,308 )   (3,453 )
Total tangible common equity $ 185,651     $ 182,793     $ 124,462     $ 119,864     $ 125,810  
Common shares outstanding – end of period(1) 11,058,956     11,058,956     8,753,933     8,751,923     8,955,476  
Book value per common share $ 18.74     $ 18.50     $ 16.72     $ 16.22     $ 16.53  
Tangible book value per common share $ 16.79     $ 16.53     $ 14.22     $ 13.70     $ 14.05  

(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 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 products and services that are tailored to meet the needs of small and medium-sized businesses, professionals, and individuals. Guaranty Bank & Trust has 26 banking locations across 18 Texas communities located within the East Texas, Dallas/Fort Worth 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 Registration Statement on Form S-1 filed with the Securities and Exchange Commission (SEC), other risks and uncertainties listed from time to time in our reports and documents filed with the SEC, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, 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.

Contact:

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