MOUNT PLEASANT, Texas, Jan. 26, 2018 (GLOBE NEWSWIRE) -- Guaranty Bancshares, Inc. (NASDAQ:GNTY), the holding company for Guaranty Bank & Trust, N.A., today reported financial results for the fiscal quarter and year ended December 31, 2017.  The company's net earnings for the quarter ended December 31, 2017, was $2.8 million, or $0.25 per basic share, compared to $3.6 million, or $0.40 per basic share, for the quarter ended December 31, 2016.  The decrease in net earnings during the fourth quarter of 2017, compared to the same period in 2016, was primarily attributable to a one-time, non-cash charge to income tax provision of $1.7 million, or $0.17 per basic share, to reduce the value of our net deferred tax assets due to a tax rate reduction from 35% to 21%.  The reduction in tax rate resulted from the Tax Cuts and Jobs Act of 2017 that was signed into law by President Trump on December 22, 2017.   For the twelve months ended December 31, 2017, net earnings increased $2.3 million to $14.4 million from $12.1 million for the prior period.   Basic earnings per share rose to $1.41 for the twelve months ended December 31, 2017 from $1.35 during the prior period. Net earnings for the twelve months ended December 31, 2017 before giving effect to the adjustment of our net deferred tax assets, was $16.1 million, compared to $12.1 million for the prior period, an increase in net earnings, before giving effect to the adjustment of our deferred tax assets, of $4.0 million, or 33.0%. The following table illustrates certain amounts and performance ratios before and after the effects of the one-time revaluation of our net deferred tax assets for the year ending December 31, 2017:

 Before Deferred
Tax Asset
Adjustment
 After Deferred
Tax Asset
Adjustment
Net earnings$16,134  $14,439 
Return on average assets0.85% 0.76%
Return on average equity8.70  7.78 
Earnings per common share, basic$1.58  $1.41 
Earnings per common share, diluted1.56  1.40 

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, as well as the additional one-time expense related to our deferred tax assets discussed above.

Net interest income for the fourth quarter of 2017 and 2016 was $15.5 million and $14.0 million, respectively, an increase of 10.4%.  Net interest margin for the fourth quarter of 2017 and 2016 was 3.39% and 3.32%, respectively.  Net interest income and net interest margin, on a taxable equivalent basis, were $15.9 million and 3.48%, respectively, for the fourth quarter of 2017.

The provision for loan losses was $600,000 in the fourth quarter of 2017, compared to $800,000 in the third quarter of 2017 and $400,000 in the fourth quarter of 2016.  The provision for loan losses in the fourth quarter of 2017 increased over the prior year's quarter primarily due to loan portfolio growth of 4.07% during the fourth quarter of 2017, along with net charge-offs of $269,000 for the quarter ended December 31, 2017, compared to net charge offs of $82,000 during the same period in 2016.  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 0.64% at December 31, 2017, compared to 0.78% at September 30, 2017, and 0.77% at December 31, 2016.

Noninterest income increased 10.7% in the fourth quarter of 2017 to $3.8 million, compared to $3.4 million in the same quarter a year ago.  Merchant and debit card fees increased 14.4% to $818,000, compared to $715,000 in the same quarter last year due to continued growth in net new accounts and debit cards.  Fiduciary income increased 17.6% to $408,000 from $347,000 in the fourth quarter of 2016, primarily due to increases in the market values of assets under management, for which fee income is generally calculated as a percentage of the market value.  Other categories of noninterest income increased with the continued growth of the bank. 

Noninterest expense for the fourth quarter of 2017 totaled $12.3 million, compared to $12.0 million for the fourth quarter of 2016, an increase of 1.9%.   The increase in noninterest expense in the fourth quarter of 2017 was primarily driven by a $368,000 increase in salary and employee benefit expenses when compared to the same quarter a year ago, a $174,000 increase in occupancy expenses and a $54,000 increase in software and technology expenses.  The increase was partially offset by decreases in FDIC insurance expense of $156,000 and other non-interest expenses of $161,000.  The company's efficiency ratio in the fourth quarter of 2017 was 64.13%, compared to 69.04% in the same quarter last year.

Net interest income increased $5.8 million to $59.6 million for the twelve months ended December 31, 2017 from $53.8 million during the prior period.   The provision for loan losses totaled $2.9 million, compared to $3.6 million for the prior period.   Noninterest income was $14.3 million for the twelve months ended December 31, 2017, compared to $13.0 million during the prior period.   Noninterest expense was $48.4 million for the twelve months ended December 31, 2017, compared to $46.4 million during the prior period. 

As of December 31, 2017, consolidated assets for the company totaled $2.0 billion, compared to $1.9 billion at September 30, 2017 and $1.8 billion at December 31, 2016.  Loans totaled $1.4 billion at December 31, 2017, compared to loans of $1.3 billion at September 30, 2017 and $1.2 billion at December 31, 2016.  Deposits totaled $1.7 billion at December 31, 2017, compared to $1.6 billion at September 30, 2017 and $1.6 billion at December 31, 2016.  Shareholders' equity was to $207.3 million as of December 31, 2017, compared to $207.3 million at September 30, 2017 and $141.9 million at December 31, 2016.  The increase from December 31, 2016 was primarily the 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 fourth quarter and year-end results.  During 2017, we expanded into the growth markets of Austin and Fort Worth, Texas.   Our other de novo and acquired locations in the Dallas/Fort Worth and Central Texas regions have continued to mature and, along with our legacy East Texas locations, provide value to our overall brand and footprint.  We are very pleased with the successful execution of our strategies during the year and look forward to Guaranty’s continued future growth prospects."

Guaranty Bancshares, Inc.
Consolidated Financial Summary (Unaudited)
(In thousands, except share and per share data)
 As of
 2017 2016
 December 31 September 30 June 30 March 31 December 31
ASSETS         
Cash and due from banks$40,482  $33,736  $36,389  $32,576  $39,605 
Federal funds sold26,175  34,250  17,700  83,175  60,600 
Interest-bearing deposits24,771  27,075  29,217  28,006  27,338 
Total cash and cash equivalents91,428  95,061  83,306  143,757  127,543 
Securities available for sale232,372  238,133  246,233  214,463  156,925 
Securities held to maturity174,684  179,081  182,248  185,837  189,371 
Loans held for sale1,896  3,400  2,435  1,446  2,563 
Loans, net1,347,779  1,294,847  1,284,318  1,241,215  1,233,651 
Accrued interest receivable8,174  6,440  7,631  6,304  7,419 
Premises and equipment, net43,818  43,958  44,491  44,823  44,810 
Other real estate owned2,244  1,929  1,733  1,637  1,692 
Cash surrender value of life insurance19,117  18,376  18,035  17,922  17,804 
Deferred tax asset2,543  4,267  4,121  4,426  4,892 
Core deposit intangible, net2,724  2,870  3,016  3,162  3,308 
Goodwill18,742  18,742  18,742  18,742  18,742 
Other assets17,103  16,949  16,160  17,465  19,616 
Total assets$1,962,624  $1,924,053  $1,912,469  $1,901,199  $1,828,336 
          
LIABILITIES AND SHAREHOLDERS' EQUITY         
Noninterest-bearing deposits$410,009  $405,678  $387,725  $370,810  $358,752 
Interest-bearing deposits1,266,311  1,211,624  1,258,648  1,300,361  1,218,039 
Total deposits1,676,320  1,617,302  1,646,373  1,671,171  1,576,791 
Securities sold under agreements to repurchase12,879  12,920  14,153  12,663  10,859 
Accrued interest and other liabilities7,117  7,601  7,921  7,595  6,006 
Other debt      18,929  18,286 
Federal Home Loan Bank advances45,153  65,157  25,161  25,165  55,170 
Subordinated debentures13,810  13,810  14,310  19,310  19,310 
Total liabilities1,755,279  1,716,790  1,707,918  1,754,833  1,686,422 
Commitments and contingent liabilities:         
KSOP-owned shares (1)      34,300  31,661 
          
Shareholders' equity207,345  207,263  204,551  146,366  141,914 
Less: KSOP-owned shares (1)      34,300  31,661 
Total shareholders' equity207,345  207,263  204,551  112,066  110,253 
Total liabilities and shareholders' equity$1,962,624  $1,924,053  $1,912,469  $1,901,199  $1,828,336 
          
 Quarter Ended
 2017 2016
 December 31 September 30 June 30 March 31 December 31
INCOME STATEMENTS         
Interest income$18,689  $18,165  $17,792  $17,136  $16,717 
Interest expense3,201  3,063  2,993  2,895  2,692 
Net interest income15,488  15,102  14,799  14,241  14,025 
Provision for loan losses600  800  800  650  400 
Net interest income after provision for loan losses14,888  14,302  13,999  13,591  13,625 
Noninterest income3,779  3,702  3,516  3,282  3,414 
Noninterest expense12,265  12,166  11,906  12,045  12,040 
Income before income taxes6,402  5,838  5,609  4,828  4,999 
Income tax provision3,594  1,699  1,633  1,312  1,425 
Net earnings$2,808  $4,139  $3,976  $3,516  $3,574 
          
PER COMMON SHARE DATA         
Earnings per common share, basic$0.25  $0.37  $0.40  $0.40  $0.40 
Earnings per common share, diluted0.25  0.37  0.39  0.40  0.40 
Cash dividends per common share0.14  0.13  0.26    0.26 
Book value per common share - end of quarter18.75  18.74  18.50  16.72  16.22 
Tangible book value per common share - end of quarter(2)16.81  16.79  16.53  14.22  13.70 
Common shares outstanding - end of quarter11,058,956  11,058,956  11,058,956  8,753,933  8,751,923 
Weighted-average common shares outstanding, basic11,058,956  11,058,956  10,019,049  8,751,945  8,968,262 
Weighted-average common shares outstanding, diluted11,162,329  11,164,429  10,106,825  8,784,410  8,976,328 
          
PERFORMANCE RATIOS         
Return on average assets (annualized)0.58% 0.87% 0.85% 0.76% 0.79%
Return on average equity (annualized)5.36  7.99  8.85  9.72  9.68 
Net interest margin (annualized)3.39  3.38  3.40  3.24  3.32 
Efficiency ratio(3)64.13  64.70  65.10  68.74  69.04 
          
 Twelve months ended      
 December 31,      
 2017 2016      
INCOME STATEMENTS         
Interest income$71,782  $64,708       
Interest expense12,152  10,868       
Net interest income59,630  53,840       
Provision for loan losses2,850  3,640       
Net interest income after provision for loan losses56,780  50,200       
Noninterest income14,279  13,016       
Noninterest expense48,382  46,380       
Income before income taxes22,677  16,836       
Income tax provision8,238  4,715       
Net earnings$14,439  $12,121       
          
PER COMMON SHARE DATA         
Earnings per common share, basic$1.41  $1.35       
Earnings per common share, diluted1.40  1.35       
Cash dividends per common share0.54  0.52       
Book value per common share - end of quarter18.75  16.22       
Common shares outstanding - end of quarter11,058,956  8,751,923       
Weighted-average common shares outstanding, basic10,230,840  8,968,262       
Weighted-average common shares outstanding, diluted10,313,369  8,976,328       
          
PERFORMANCE RATIOS         
Return on average assets0.76% 0.68%      
Return on average equity7.78  8.34       
Net interest margin3.38  3.27       
Efficiency ratio(3)65.61  69.46       

(1) In accordance with provisions of the Internal Revenue Code applicable to private companies, the terms of our KSOP required us, for a specified time, to repurchase shares of our common stock distributed to participants from the KSOP.  Accordingly, the shares of our common stock held by the KSOP while we were a private company are reflected in our consolidated balance sheet as a line item between total liabilities and shareholders’ equity.  Upon listing of our common stock on the NASDAQ Global Select Market in May 2017, this repurchase obligation terminated and, consequently, we were no longer required to deduct KSOP-owned shares from shareholders’ equity.
(2) See Reconciliation of non-GAAP Financial Measures table
(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
 2017 2016
 December 31 September 30 June 30 March 31 December 31
LOAN PORTFOLIO COMPOSITION         
Commercial and industrial$197,508  $192,368  $217,310  $205,351  $223,712 
Real estate:         
Construction and development196,774  201,542  178,041  153,227  129,631 
Commercial real estate418,137  393,710  379,083  373,252  368,077 
Farmland59,023  54,351  63,841  62,133  62,366 
1-4 family residential374,371  364,530  355,121  359,565  361,665 
Multi-family residential36,574  23,259  28,858  23,943  26,079 
Consumer51,267  51,379  51,244  52,755  53,177 
Agricultural25,596  24,449  21,854  21,473  18,901 
Overdrafts294  698  364  390  317 
Total loans(1)(2)$1,359,544  $1,306,286  $1,295,716  $1,252,089  $1,243,925 
          
 Quarter Ended
 2017 2016
 December 31 September 30 June 30 March 31 December 31
ALLOWANCE FOR LOAN LOSSES         
Balance at beginning of period$12,528  $12,525  $11,928  $11,484  $11,166 
Loans charged-off(979) (929) (302) (248) (243)
Recoveries710  132  99  42  161 
Provision for loan losses600  800  800  650  400 
Balance at end of period$12,859  $12,528  $12,525  $11,928  $11,484 
          
Allowance for loan losses / period-end loans0.95% 0.96% 0.97% 0.95% 0.92%
Allowance for loan losses / nonperforming loans321.2  217.7  316.4  389.0  260.5 
Net charge-offs / average loans (annualized)0.08  0.25  0.06  0.07  0.03 
          
NON-PERFORMING ASSETS         
Non-accrual loans (3)$4,004  $5,755  $3,958  $3,066  $4,409 
Other real estate owned2,244  1,929  1,733  1,637  1,692 
Repossessed assets owned2,466  2,479  3,501  3,526  3,530 
Total non-performing assets$8,714  $10,163  $9,192  $8,229  $9,631 
          
Non-performing assets as a percentage of:         
Total loans(1)(3)0.64% 0.78% 0.71% 0.66% 0.77%
Total assets0.44  0.53  0.48  0.43  0.53 
          
Restructured loans-nonaccrual$  $  $  $42  $43 
Restructured loans-accruing657  316  323  330  462 
          
 Quarter Ended
 2017 2016
 December 31 September 30 June 30 March 31 December 31
NONINTEREST INCOME         
Service charges$945  $986  $938  $877  $905 
Net realized gain on securities transactions142    25     
Net realized gain on sale of loans491  589  472  429  487 
Fiduciary income408  362  343  350  347 
Bank-owned life insurance income114  116  114  117  116 
Merchant and debit card fees818  778  791  732  715 
Loan processing fee income143  146  163  145  149 
Other noninterest income718  725  670  632  695 
Total noninterest income$3,779  $3,702  $3,516  $3,282  $3,414 
          
NONINTEREST EXPENSE         
Employee compensation and benefits$6,922  $6,729  $6,440  $6,987  $6,554 
Occupancy expenses1,848  1,938  1,866  1,748  1,674 
Legal and professional fees589  692  419  361  577 
Software and technology556  533  517  483  502 
Amortization252  258  259  264  261 
Director and committee fees304  253  248  259  260 
Advertising and promotions314  303  335  241  263 
ATM and debit card expense133  253  264  249  228 
Telecommunication expense114  128  141  143  171 
FDIC insurance assessment fees144  162  174  191  300 
Other noninterest expense1,089  917  1,243  1,119  1,250 
Total noninterest expense$12,265  $12,166  $11,906  $12,045  $12,040 
          
 Twelve months ended      
 December 31,      
 2017 2016      
NONINTEREST INCOME         
Service charges$3,746  $3,530       
Net realized gain on securities transactions167  82       
Net realized gain on sale of loans1,981  1,718       
Fiduciary income1,463  1,405       
Bank-owned life insurance income461  453       
Merchant and debit card fees3,119  2,741       
Loan processing fee income597  622       
Other noninterest income2,745  2,465       
Total noninterest income$14,279  $13,016       
          
NONINTEREST EXPENSE         
Employee compensation and benefits$27,078  $25,611       
Occupancy expenses7,400  6,870       
Legal and professional fees2,061  1,935       
Software and technology2,089  1,870       
Amortization1,033  980       
Director and committee fees1,064  940       
Advertising and promotions1,193  1,015       
ATM and debit card expense899  933       
Telecommunication expense526  609       
FDIC insurance assessment fees671  1,200       
Other noninterest expense4,368  4,417       
Total noninterest expense$48,382  $46,380       

(1) Excludes outstanding balances of loans held for sale of $1.6 million, $3.4 million, $2.4 million, $1.4 million and $2.6 million as of December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, respectively.
(2) Excludes deferred loan fees of $1.1 million, $1.1 million, $1.1 million, $1.1 million and $1.2 million as of December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, 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)
 For the Three Months Ended December 31,
 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)$1,324,401  $15,899  4.76% $1,242,873  $14,708  4.69%
Securities available for sale241,458  1,403  2.31  143,655  666  1.84 
Securities held to maturity177,447  1,069  2.39  191,530  1,129  2.34 
Nonmarketable equity securities7,495  86  4.55  8,831  78  3.50 
Interest-bearing deposits in other banks63,997  232  1.44  89,271  136  0.60 
Total interest-earning assets1,814,798  18,689  4.09  1,676,160  16,717  3.96 
Allowance for loan losses(12,743)     (11,340)    
Noninterest-earnings assets145,069      144,919     
Total assets$1,947,124      $1,809,739     
LIABILITIES AND SHAREHOLDERS' EQUITY           
Interest-bearing liabilities:           
Interest-bearing deposits$1,233,932  $2,843  0.91% $1,193,883  $2,259  0.75%
Advances from FHLB and fed funds purchased59,938  178  1.18  55,391  59  0.42 
Other debt      12,281  134  4.33 
Subordinated debentures13,810  165  4.74  19,332  226  4.64 
Securities sold under agreements to repurchase14,402  15  0.41  15,235  14  0.36 
Total interest-bearing liabilities1,322,082  3,201  0.96  1,296,122  2,692  0.82 
Noninterest-bearing liabilities:           
Noninterest-bearing deposits408,959      359,557     
Accrued interest and other liabilities6,638      6,310     
Total noninterest-bearing liabilities415,597      365,867     
Shareholders’ equity209,445      147,750     
Total liabilities and shareholders’ equity$1,947,124      $1,809,739     
Net interest rate spread(2)    3.13%     3.13%
Net interest income  $15,488      $14,025   
Net interest margin(3)    3.39%     3.32%

(1) Includes average outstanding balances of loans held for sale of $1.6 million and $2.6 million for the three months ended December 31, 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 Twelve Months Ended December 31,
 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)$1,283,253  $61,014  4.75% $1,179,938  $55,565  4.71%
Securities available for sale223,095  5,081  2.28  198,372  3,723  1.88 
Securities held to maturity182,549  4,409  2.42  182,870  4,678  2.56 
Nonmarketable equity securities7,134  465  6.52  8,547  271  3.17 
Interest-bearing deposits in other banks70,692  813  1.15  78,232  471  0.60 
Total interest-earning assets1,766,723  71,782  4.06  1,647,959  64,708  3.93 
Allowance for loan losses(12,217)     (10,826)    
Noninterest-earnings assets144,971      139,575     
Total assets$1,899,477      $1,776,708     
LIABILITIES AND SHAREHOLDERS' EQUITY           
Interest-bearing liabilities:           
Interest-bearing deposits$1,241,115  $10,604  0.85% $1,175,520  $9,050  0.77%
Advances from FHLB and fed funds purchased46,268  472  1.02  62,961  299  0.47 
Other debt6,711  301  4.49  13,198  586  4.44 
Subordinated debentures15,902  724  4.55  20,313  882  4.34 
Securities sold under agreements to repurchase13,306  51  0.38  13,011  51  0.39 
Total interest-bearing liabilities1,323,302  12,152  0.92  1,285,003  10,868  0.85 
Noninterest-bearing liabilities:           
Noninterest-bearing deposits384,049      340,240     
Accrued interest and other liabilities6,648      6,080     
Total noninterest-bearing liabilities390,697      346,320     
Shareholders’ equity185,478      145,385     
Total liabilities and shareholders’ equity$1,899,477      $1,776,708     
Net interest rate spread(2)    3.14%     3.08%
Net interest income  $59,630      $53,840   
Net interest margin(3)    3.38%     3.27%

(1) Includes average outstanding balances of loans held for sale of $1.7 million and $3.0 million for the twelve months ended December 31, 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
 December 31 September 30 June 30 March 31 December 31
Total shareholders’ equity, including  KSOP-owned shares$207,345  $207,263  $204,551  $146,366  $141,914 
Adjustments:         
Goodwill(18,742) (18,742) (18,742) (18,742) (18,742)
Core deposit and other intangibles(2,724) (2,870) (3,016) (3,162) (3,308)
Total tangible common equity$185,879  $185,651  $182,793  $124,462  $119,864 
Common shares outstanding - end of period(1)11,921,298  11,058,956  11,058,956  8,753,933  8,751,923 
Book value per common share$17.39  $18.74  $18.50  $16.72  $16.22 
Tangible book value per common share15.59  16.79  16.53  14.22  13.70 

(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 products and services. Guaranty Bank & Trust has 28 banking locations across 20 Texas communities located within the East Texas, Dallas/Fort Worth Metroplex 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 Payne
Senior Executive Vice President and Chief Financial Officer
(888) 572-9881
investors@gnty.com