Guaranty Bancshares, Inc. Reports Fourth Quarter and Year-End 2017 Financial Results

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



Source:Guaranty Bancshares, Inc.