8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report:

(Date of earliest event reported)

July 18, 2022

GUARANTY BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Texas	001-38087	75-1656431
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
16475 Dallas Parkway, Suite 600 Addison, Texas		75001
(Address of Principal Executive Offices)		(Zip Code)

(888) 572-9881

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, par value $1.00 per share	GNTY	NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Item 2.02. Results of Operations and Financial Condition.

In accordance with Item 2.02 of Form 8-K of the Securities and Exchange Commission (the “SEC”), Guaranty Bancshares, Inc., a Texas corporation (the “Company”), is furnishing to the SEC a press release that the Company issued on July 18, 2022 (the “Press Release”) announcing the Company’s financial results for the fiscal quarter ended June 30, 2022. A copy of the Press Release is attached as Exhibit 99.1.

Item 7.01. Regulation FD Disclosure.

On July 18, 2022, the Company will host a conference call with respect to financial results for the fiscal quarter ended June 30, 2022. A copy of the Earnings Call Presentation materials is attached as Exhibit 99.2.

In accordance with the General Instruction B.2 of Form 8-K, the information in Item 2.02 and Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2 hereto, which are furnished herewith pursuant to and relate to Item 2.02 and Item 7.01, respectively, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise be subject to the liabilities of Section 18 of the Exchange Act. The information in Item 2.02 and Item 7.01 of this Current Report on Form 8-K and Exhibit 99.1 and Exhibit 99.2 hereto shall not be incorporated by reference into any filing or other document filed by the Company with the SEC pursuant to the Securities Act of 1933, as amended, the rules and regulations of the SEC thereunder, the Exchange Act, or the rules and regulations of the SEC thereunder, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

The following is furnished as an exhibit to this Current Report on Form 8-K:

Exhibit Number	Description of Exhibit
99.1	Press Release dated July 18, 2022, reporting second quarter 2022 financial results
99.2	Earnings Call Presentation materials, dated July 18, 2022
104	Cover Page Interactive File (formatted as Inline XBRL)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated:	July 18, 2022
	GUARANTY BANCSHARES, INC.
By:	/s/ Tyson T. Abston
Name:	Tyson T. Abston
Title:	Chairman of the Board and Chief Executive Officer

EX-99.1

Exhibit 99.1

Press Release

For Immediate Release

Guaranty Bancshares, Inc. Reports

Second Quarter 2022 Financial Results

Addison, Texas – July 18, 2022 / Business Wire / – Guaranty Bancshares, Inc. (NASDAQ: GNTY) (the "Company"), the parent company of Guaranty Bank & Trust, N.A. (the "Bank"), today reported financial results for the fiscal quarter ended June 30, 2022. The Company's net income available to common shareholders was $10.8 million, or $0.90 per basic share, for the quarter ended June 30, 2022, compared to $10.7 million, or $0.89 per basic share, for the quarter ended March 31, 2022 and $10.4 million, or $0.87 per basic share, for the quarter ended June 30, 2021. Return on average assets and average equity for the second quarter of 2022 were 1.35% and 14.85%, respectively, compared to 1.38% and 14.44%, respectively, for the first quarter of 2022 and 1.42% and 14.64%, respectively, for the second quarter of 2021. The modest increase in earnings during the second quarter of 2022, compared to the first quarter of 2022, was primarily due to improved net interest margin, but offset by lower non-interest income and higher non-interest expense. Our net core earnings†, excluding provisions for credit losses, income taxes and PPP1/PPP2 net income, as well as our core net interest margin, adjusted to exclude the effects of PPP1/PPP2 loans, are described further in tables below.

"Our second quarter results were strong with an increase in net core earnings of nearly $2.0 million from the first quarter of 2022. We improved our net interest margin through repricing of new and existing loans at higher yields and through deployment of excess liquidity held in fed funds throughout the pandemic into higher yielding securities during the first half of 2022. Loan growth has also been strong. Excluding PPP and warehouse loans, our loan portfolio grew 7.1% during the second quarter and 16.4% year-to-date, although this will likely slow during the second half of the year as rates continue to rise and fears of an economic downturn continue to develop. Despite possible slowing of loan growth, we've built a solid earnings stream that should continue to deliver good financial outcomes for our Company and our shareholders. Texas also remains a very vibrant market and should weather this period of economic uncertainty better than most. Non-performing assets remain very low and we maintain our conservative approach to credit underwriting. As with most companies, inflation pressure and wage increases from a tight labor market have caused increases in our non-interest expense, which we are closely monitoring and managing. Historically, Guaranty has navigated both rising rate and recessionary cycles with good outcomes, which we are confident we will do again during the current economic environment" commented Ty Abston, the Company's Chairman and Chief Executive Officer.

QUARTERLY HIGHLIGHTS

•Strong Loan Growth. The second quarter of 2022 saw strong organic loan growth, increasing $124.3 million, or 6.2%, during the quarter. Excluding PPP and warehouse lending changes, our loans grew $139.9 million, or 7.1%, during the quarter. Our loan growth is a result of internally generated sources and is not from loan purchases from other originators.

•Solid Net Earnings and Core Earnings. Net earnings have remained consistent quarter-over-quarter. Net core earnings†, which exclude provisions for credit losses and income tax, and net PPP income, have trended upwards, demonstrating a solid and consistent core earnings stream. Net core earnings† were $12.8 million for the second quarter, compared to $10.9 million for the first quarter of 2022, and $9.8 million during the second quarter of 2021.

•Good Asset Quality. Non-performing assets as a percentage of total assets were 0.30% at June 30, 2022, compared to 0.08% at March 31, 2022 and 0.13% at June 30, 2021. Net charge-offs to average loans (annualized) were 0.02% for the quarter ended June 30, 2022, compared to 0.02% for the quarter ended March 31, 2022, and 0.05% for the quarter ended June 30, 2021.

•Repricing Loans. The Bank is slightly asset-sensitive and should see benefits from expected rate increases by the Federal Reserve. As of June 30, 2022, $267.8 million, or 12.5% of our loan portfolio is fully floating and $1.1 billion, or 51.8% are adjustable rate term loans, repricing at defined future time periods or at maturity. A rate increase of 75 bps at the July FOMC meeting would result in the repricing of approximately $322.7 million, or 23.5%, of our floating and variable rate loans in July. Total rate increases of 175 bps between June 30 and December 31 would result in repricing of approximately $453.6 million, or 33.0%, of our total floating and adjustable rate loans by December 31, 2022. Although we have raised interest rates paid on deposit accounts, we continue to maintain a conservative approach to increases. A total of 39.8% of our deposits are noninterest-bearing and total cost of funds on total deposits during the second quarter was 0.23%.

RESULTS OF OPERATIONS

Participation in the PPP1 and PPP2 program, as well as large provisions for credit losses in the second quarter of 2020, resulting from the expected effects of COVID-19, along with subsequent provision releases, has created temporary extraordinary results in the

†Non-GAAP financial metric. Calculations of this metric and reconciliations to GAAP are included in the schedules accompanying this release.

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calculation of net earnings and related performance ratios. The following table illustrates net earnings and net core earnings results, which are pre-tax, pre-provision and pre-extraordinary PPP1/PPP2 income, as well as performance ratios for the prior five quarters:

	Quarter Ended
	2022						2021
(dollars in thousands, except per share data)	June 30			March 31			December 31			September 30			June 30
Net earnings attributable to Guaranty Bancshares, Inc.	$	10,784		$	10,738		$	9,159		$	9,253		$	10,432
Adjustments:
Provision for credit losses		—			(1,250	)		—			(700	)		(1,000	)
Income tax provision		2,472			2,235			1,923			2,179			2,312
PPP loan interest and fees		(436	)		(783	)		(958	)		(1,005	)		(1,954	)
Net core earnings attributable to Guaranty Bancshares, Inc.†	$	12,820		$	10,940		$	10,124		$	9,727		$	9,790
Total average assets	$	3,209,440		$	3,146,339		$	3,021,079		$	2,953,181		$	2,938,944
Adjustments:
PPP loans average balance		(8,885	)		(36,720	)		(61,062	)		(107,931	)		(155,417	)
Total average assets, adjusted†	$	3,200,555		$	3,109,619		$	2,960,017		$	2,845,250		$	2,783,527
Total average equity	$	291,312		$	301,579		$	301,398		$	295,076		$	285,803
PERFORMANCE RATIOS
Net earnings to average assets (annualized)		1.35	%		1.38	%		1.20	%		1.24	%		1.42	%
Net earnings to average equity (annualized)		14.85			14.44			12.06			12.44			14.64
Net core earnings to average assets, as adjusted (annualized)†		1.61			1.43			1.36			1.36			1.41
Net core earnings to average equity (annualized)†		17.65			14.71			13.33			13.08			13.74
PER COMMON SHARE DATA
Weighted-average common shares outstanding, basic		11,968,227			12,109,074			12,097,100			12,067,769			12,056,550
Earnings per common share, basic	$	0.90		$	0.89		$	0.76		$	0.77		$	0.87
Net core earnings per common share, basic†		1.07			0.90			0.84			0.81			0.81
† Non-GAAP financial metric. Calculations of this metric and reconciliations to GAAP are included in the schedules accompanying this release.

Net interest income, before the provision for credit losses, in the second quarter of 2022 and 2021 was $26.9 million and $23.5 million, respectively, an increase of $3.4 million, or 14.4%. The increase in net interest income resulted from an increase in interest income of $3.8 million, or 15.2%, which was partially offset by an increase in interest expense of $462,000, or 25.6%, quarter over quarter. Interest and fee income from PPP loans decreased $1.5 million, or 77.7%, while all loan and other interest income increased $3.4 million, or 14.8%, during the current quarter compared to the prior year quarter. In addition, interest income from investment securities increased $1.9 million, or 88.9%, from the same quarter in the prior year.

Net interest margin, on a taxable equivalent basis, for the second quarter of 2022 and 2021 was 3.61% and 3.44%, respectively. Net interest margin increased 17 basis points primarily due to a 21 basis point yield increase on total interest earning assets that was offset by an eight basis point increase in cost of interest bearing liabilities. The increase in yield on interest earning assets resulted primarily due to the reinvestment of interest bearing deposits held at other banks, which earned a yield of 0.06% in the prior year quarter, into higher yielding investment securities and loans. There was a slight decrease in loan yield from 4.79% for the second quarter of 2021 to 4.77% for the second quarter of 2022, a change of two basis points, caused primarily due to recognized PPP origination fee and interest income of $2.0 million during the prior year quarter, compared to $436,000 in the current year quarter. The increase in net interest margin was offset slightly by an increase in the cost of interest-bearing deposits from 0.37% to 0.38% during the same period, a change of one basis point, and an increase in the overall cost of interest-bearing liabilities of eight basis points, from 0.42% in the second quarter of 2021 to 0.50% in the second quarter of 2022.

Net interest income, before the provision for credit losses, increased $2.5 million, or 10.4%, from $24.3 million in the first quarter of 2022 to $26.9 million in the second quarter of 2022. The increase in net interest income resulted primarily from an increase in loan income of $2.3 million, or 10.4%, from the prior quarter, as well as an increase in investment security income of $1.0 million, or 33.4% from the prior quarter. The increase was partially offset by an increase in the cost of interest bearing liabilities of $699,000, or 44.5%, from the prior quarter.

Net interest margin, on a taxable equivalent basis, increased from 3.37% for the first quarter of 2022 to 3.61% for the second quarter of 2022, an increase of 24 basis points. Loan yield increased from 4.66% for the first quarter of 2022 to 4.77% for the second quarter of 2022, a change of 11 basis points. The remaining increase in net interest margin resulted primarily from a decrease in average interest bearing deposits held at other banks of $260.8 million, which earned a yield of 0.13% in the prior quarter, and which were reinvested into higher yielding investment securities and loans. The increase in net interest margin was offset slightly by an increase in the cost of

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interest-bearing deposits from 0.29% in the first quarter to 0.38% in the second quarter of 2022, a change of nine basis points. There was an increase in the overall cost of interest-bearing liabilities of 14 basis points, from 0.36% in the first quarter to 0.50% in the second quarter of 2022.

The Bank’s participation in the PPP program created temporary extraordinary results in the calculation of net interest margin. To illustrate the impact of the PPP program on net interest margin, the table below excludes PPP1 and PPP2 loans and their associated fees and costs for the quarter ended June 30, 2022:

	Quarter Ended June 30, 2022									For the Six Months Ended June 30, 2022
(dollars in thousands)	Average Outstanding Balance			Interest Earned			Average Yield			Average Outstanding Balance			Interest Earned			Average Yield
Total loans	$	2,068,379		$	24,587			4.77	%	$	2,003,053		$	46,859			4.72	%
Adjustments:
PPP1 loans average balance and net fees(1)		(195	)		—			—			(484	)		(5	)		2.08
PPP2 loans average balance and net fees(2)		(8,690	)		(436	)		20.12			(22,310	)		(1,214	)		10.97
Total PPP loans(3)	$	(8,885	)	$	(436	)		19.68	%	$	(22,794	)	$	(1,219	)		10.78	%
Total loans, excluding PPP†	$	2,059,494		$	24,151			4.70	%	$	1,980,259		$	45,640			4.65	%
Total interest-earning assets		3,020,390			29,120			3.87			2,991,711			55,013			3.71
Total interest-earning assets, net of PPP effects†	$	3,011,505		$	28,684			3.82	%	$	2,968,917		$	53,794			3.65	%
Net interest income				$	26,851								$	51,174
Net interest margin(4)								3.57	%								3.45	%
Net interest margin, FTE(5)								3.61									3.49
Net interest income, net of PPP effects†					26,415									49,955
Net interest margin, net of PPP effects†(6)								3.52									3.39
Net interest margin, FTE, net of PPP effects†(7)								3.56									3.43
Efficiency ratio(8)								59.80									60.84
Efficiency ratio, net of PPP effects†(9)								60.60									62.02
† Non-GAAP financial metric. Calculations of this metric and reconciliations to GAAP are included in the schedules accompanying this release.
(1) Interest earned on PPP1 loans consists of interest income of $2,000, and net origination fees recognized in earnings of $3,000 for the six months ended June 30, 2022. No interest income or net origination fees were recognized for the quarter ended June 30, 2022.
(2) Interest earned on PPP2 loans consists of interest income of $21,000 and $108,000, and net origination fees recognized in earnings of $415,000 and $1.1 million for the three and six months ended June 30, 2022, respectively.
(3) Interest earned consists of interest income of $21,000 and $110,000, and net origination fees recognized in earnings of $415,000 and $1.1 million for the three and six months ended June 30, 2022, respectively.
(4) Net interest margin is equal to net interest income divided by average interest-earning assets, annualized. Taxes are not a part of this calculation.
(5) Net interest margin on a taxable equivalent basis is equal to net interest income adjusted for nontaxable income divided by average interest-earning assets, annualized, using a marginal tax rate of 21%.
(6) Net interest margin is equal to net interest income, net of PPP effects, divided by average interest-earning assets, excluding average PPP loans, annualized. Taxes are not a part of this calculation.
(7) Net interest margin on a taxable equivalent basis is equal to net interest income, net of PPP effects, adjusted for nontaxable income divided by average interest-earning assets, excluding average PPP loans, annualized, using a marginal tax rate of 21%.
(8) 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.
(9) The efficiency ratio was calculated by dividing total noninterest expense, net of PPP-related deferred costs, by net interest income, net of PPP effects, plus noninterest income, excluding securities gains or losses. Taxes are not part of this calculation.

During the second quarter of 2022, we recorded no provision for credit losses. At the onset of the COVID pandemic in 2020, we established COVID-specific qualitative factors to estimate the potential impact of the pandemic to our loan portfolio as a whole, which led to a provision during 2020 of $13.2 million. As the economic, health and other impacts of the virus became more clear and cases began to decline, we reduced the COVID-specific qualitative factors during 2021 and fully unwound these specific factors during the first quarter of 2022. The impact of unwinding the remaining COVID-specific qualitative factors was offset by growth in our loan portfolio, however, we also decreased certain of our standard qualitative factors in the second quarter to capture current macro-economic conditions that we believe are more similar to the environment prior to the COVID-19 pandemic (i.e. near the end of a long up-cycle with a downturn expected) and consistent with our day-one CECL methodology. As of June 30, 2022, our allowance for credit losses as a percentage of total loans was 1.36%.

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Noninterest income increased $111,000, or 1.9%, in the second quarter of 2022 to $6.1 million, compared to $6.0 million for the second quarter of 2021. The increase from the same quarter in 2021 was due primarily to an increase in services charges of $215,000, or 25.1%, an increase in merchant and debit card fees of $139,000, or 7.2%, and an increase in other noninterest income of $169,000, or 26.4%, compared to the same quarter in the prior year. The increase in noninterest income was partially offset by a decrease in the gain on sale of loans of $362,000, or 29.1%, a $55,000, or 35.0%, decrease in mortgage fee income and a $132,000, or 62.6%, decrease in warehouse lending fees compared to the same quarter of the prior year. The increase in service charges and merchant and debit card fees, as well as the decreases in gain on sale of loans, mortgage fee income and warehouse lending fees were primarily volume driven. The increase in other non-interest income was comprised of various smaller items such as increases in loan processing fees, SBA servicing revenue, and a $45,000 loss on sale of ORE in the prior year quarter that was not present in the current year.

Noninterest expense increased $2.0 million, or 11.2%, in the second quarter of 2022 to $19.7 million, compared to the second quarter of 2021. The increase in noninterest expense in the second quarter of 2022 was driven primarily by a $1.5 million, or 15.0%, increase in employee compensation and benefits due to increased salaries, higher insurance expense accruals due to increased claims experience and increased bonus accruals due to higher net income. Software and technology expense increased $284,000, or 26.9%, compared to the second quarter of 2021, due to additional technology investments. The increase was partially offset by a decrease in amortization of deposit premiums and software of $158,000, or 47.0%, from the prior year quarter.

Noninterest income in the second quarter of 2022 decreased by $398,000, or 6.1%, from $6.5 million in the first quarter of 2022 due primarily to a decrease in other noninterest income of $890,000, or 52.4%, resulting primarily from a $685,000 net gain on the termination of interest rate swaps that occurred during the first quarter of 2022.

Noninterest expense increased $615,000, or 3.2%, in the second quarter of 2022, from $19.1 million for the quarter ended March 31, 2022. The increase was primarily due to an increase in employee compensation and benefits of $198,000, or 1.7%, an increase in occupancy expenses of $137,000, or 5.1%, an increase in software and technology expense of $130,000, or 10.8%, an increase in ATM and debit card expense of $96,000, or 16.6%, and an increase in other noninterest expense of $161,000, or 15.6%, during the second quarter of 2022. The increase in other non-interest expense resulted primarily from increases in charitable contributions, travel, lodging and meal expenses and from customer account related fraud losses, compared to the prior year quarter. These were partially offset by a decreases in amortization expense of $41,000, or 18.7%, and advertising expense of $87,000, or 21.4%, during the second quarter of 2022.

The Company’s efficiency ratio in the second quarter of 2022 was 59.80%, compared to 61.94% in the prior year quarter and 60.12% in the first quarter of 2022. Adjusted to remove the effects of PPP-related transactions, the Company’s efficiency ratio† for the second quarter of 2022 was 60.60%, was 63.56% for the first quarter of 2022 and was 64.66% for the second quarter of 2021.

†Non-GAAP financial metric. Calculations of this metric and reconciliations to GAAP are included in the schedules accompanying this release.

FINANCIAL CONDITION

Consolidated assets for the Company totaled $3.28 billion at June 30, 2022, compared to $3.19 billion at March 31, 2022 and $2.93 billion at June 30, 2021.

Gross loans increased $124.3 million, or 6.2%, to $2.14 billion at June 30, 2022, compared to loans of $2.01 billion at March 31, 2022. The increase in gross loans from the first quarter of 2022 to the second quarter of 2022 is primarily due to increased loan originations and advances, which were partially offset by continued forgiveness of PPP loans, which decreased $16.7 million during the quarter. Excluding PPP and warehouse lending loans, gross loans increased $139.9 million, or 7.1%, from March 31, 2022.

Gross loans increased $248.2 million, or 13.1%, from $1.89 billion at June 30, 2021. The increase in gross loans during the second quarter of 2022 compared to the second quarter of 2021 resulted primarily from organic loan growth and was partially offset by a $124.8 million reduction in PPP loan balances during the period. Excluding PPP and warehouse lending loans, gross loans increased $420.2 million, or 24.9%, from June 30, 2021.

Total deposits decreased by $17.8 million, or 0.6%, to $2.78 billion at June 30, 2022, compared to $2.80 billion at March 31, 2022, and increased 9.7%, or $246.6 million, from $2.53 billion at June 30, 2021. The decrease in deposits during the current quarter resulted primarily from a $38.4 million decrease in public funds accounts.

Nonperforming assets as a percentage of total loans were 0.46% at June 30, 2022, compared to 0.13% at March 31, 2022 and 0.20% at June 30, 2021. The Bank's non-performing assets consist primarily of non-accrual loans. Four loans were added to non-accrual status in the current quarter and are Small Business Administration (SBA) 7(a), partially guaranteed (75%) loans, acquired in the June 2018 acquisition of Westbound Bank, with combined book balances of $6.7 million as of June 30, 2022. These loans, collateralized by two hotels, were identified as problem assets prior to COVID-19 but obtained government stimulus and other relief which allowed the two related borrowers to remain current through early 2022. Management continues to work toward a satisfactory resolution for these four loans, however, in the event of foreclosure, a significant loss is not expected due to estimated current collateral values.

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Total equity totaled $282.8 million as of June 30, 2022, compared to $291.9 million at March 31, 2022 and $287.7 million at June 30, 2021. The decrease from the previous quarter resulted primarily from the payment of dividends of $2.6 million, repurchase of 175,181 shares of treasury stock for $6.2 million and a decrease in accumulated other comprehensive income of $11.7 million during the second quarter of 2022 resulting from fluctuations in the fair market value of securities, offset by net income of $10.8 million. Although the unrealized losses in accumulated other comprehensive income during the quarter do not impact regulatory capital ratios, they did result in a decrease in the tangible common equity† ratio from 8.16% as of March 31, 2022 to 7.64% as of June 30, 2022.

In September 2021, we announced the formation of a partnership with CaliberCos, Inc., a vertically integrated alternative asset manager and fund sponsor, in an effort to drive investments that will revitalize communities across Texas through real estate developments. We recorded this investment by our Bank subsidiary and the noncontrolling interest during the first quarter of 2022. Further details of this partnership can be found in a Form 8-K filed with the Securities and Exchange Commission on September 7, 2021.

Nonperforming assets as a percentage of total assets were 0.30% at June 30, 2022 compared to 0.08% at March 31, 2022, and 0.13% at June 30, 2021.

	As of
	2022				2021
(dollars in thousands)	June 30		March 31		December 31		September 30		June 30
ASSETS
Cash and due from banks	$	56,545	$	58,788	$	42,979	$	34,741	$	37,611
Federal funds sold		2,425		139,300		431,975		346,500		385,075
Interest-bearing deposits		12,053		24,003		24,651		27,634		24,532
Total cash and cash equivalents		71,023		222,091		499,605		408,875		447,218
Securities available for sale		196,095		306,704		342,206		269,070		446,636
Securities held to maturity		713,390		494,289		184,263		173,676		—
Loans held for sale		2,770		1,166		4,129		1,903		5,088
Loans, net		2,107,658		1,983,449		1,876,076		1,938,268		1,856,277
Accrued interest receivable		10,144		8,961		8,901		7,673		8,801
Premises and equipment, net		54,437		54,316		53,470		53,834		54,405
Other real estate owned		—		—		—		40		227
Cash surrender value of life insurance		37,979		37,352		37,141		36,582		36,367
Core deposit intangible, net		2,086		2,199		2,313		2,426		2,573
Goodwill		32,160		32,160		32,160		32,160		32,160
Other assets		53,171		47,142		45,806		43,761		43,207
Total assets	$	3,280,913	$	3,189,829	$	3,086,070	$	2,968,268	$	2,932,959
LIABILITIES AND EQUITY
Deposits
Noninterest-bearing	$	1,105,756	$	1,065,789	$	1,014,518	$	972,854	$	928,416
Interest-bearing		1,673,865		1,731,621		1,656,309		1,590,217		1,604,610
Total deposits		2,779,621		2,797,410		2,670,827		2,563,071		2,533,026
Securities sold under agreements to repurchase		7,871		11,090		14,151		11,195		15,336
Accrued interest and other liabilities		28,033		27,803		26,568		26,284		28,058
Line of credit		—		—		5,000		3,000		—
Federal Home Loan Bank advances		131,500		7,500		47,500		47,500		49,000
Subordinated debentures		51,053		54,146		19,810		19,810		19,810
Total liabilities		2,998,078		2,897,949		2,783,856		2,670,860		2,645,230
Equity attributable to Guaranty Bancshares, Inc.		282,255		291,282		302,214		297,408		287,729
Noncontrolling interest		580		598		—		—		—
Total equity		282,835		291,880		302,214		297,408		287,729
Total liabilities and equity	$	3,280,913	$	3,189,829	$	3,086,070	$	2,968,268	$	2,932,959

†Non-GAAP financial metric. Calculations of this metric and reconciliations to GAAP are included in the schedules accompanying this release.

5

	Quarter Ended
	2022						2021
(dollars in thousands, except per share data)	June 30			March 31			December 31			September 30			June 30
STATEMENTS OF EARNINGS
Interest income	$	29,120		$	25,893		$	25,518		$	25,235		$	25,284
Interest expense		2,269			1,570			1,498			1,665			1,807
Net interest income		26,851			24,323			24,020			23,570			23,477
Provision for credit losses		—			(1,250	)		—			(700	)		(1,000	)
Net interest income after provision for credit losses		26,851			25,573			24,020			24,270			24,477
Noninterest income		6,081			6,479			6,038			6,449			5,970
Noninterest expense		19,694			19,079			18,976			19,287			17,703
Income before income taxes		13,238			12,973			11,082			11,432			12,744
Income tax provision		2,472			2,235			1,923			2,179			2,312
Net earnings	$	10,766		$	10,738		$	9,159		$	9,253		$	10,432
Net loss attributable to noncontrolling interest		18			—			—			—			—
Net earnings attributable to Guaranty Bancshares, Inc.	$	10,784		$	10,738		$	9,159		$	9,253		$	10,432
PER COMMON SHARE DATA*
Earnings per common share, basic	$	0.90		$	0.89		$	0.76		$	0.77		$	0.87
Earnings per common share, diluted		0.89			0.88			0.75			0.76			0.85
Cash dividends per common share		0.22			0.22			0.20			0.20			0.20
Book value per common share - end of quarter		23.69			24.19			24.93			24.62			23.86
Tangible book value per common share - end of quarter(1)		20.82			21.29			22.09			21.75			20.98
Common shares outstanding - end of quarter(4)		11,912,249			12,066,480			12,122,717			12,081,477			12,057,937
Weighted-average common shares outstanding, basic		11,968,227			12,109,074			12,097,100			12,067,769			12,056,550
Weighted-average common shares outstanding, diluted		12,098,983			12,260,945			12,263,252			12,211,389			12,251,587
PERFORMANCE RATIOS
Return on average assets (annualized)		1.35	%		1.38	%		1.20	%		1.24	%		1.42	%
Return on average equity (annualized)		14.85			14.44			12.06			12.44			14.64
Net interest margin, fully taxable equivalent (annualized)(2)		3.61			3.37			3.39			3.40			3.44
Efficiency ratio(3)		59.80			61.94			63.13			64.25			60.12
(1) See Reconciliation of non-GAAP Financial Measures table.
(2) Net interest margin on a taxable equivalent basis is equal to net interest income adjusted for nontaxable income divided by average interest-earning assets, annualized, using a marginal tax rate of 21%.
(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.
(4) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options.

6

	As of
	2022						2021
(dollars in thousands)	June 30			March 31			December 31			September 30			June 30
LOAN PORTFOLIO COMPOSITION
Commercial and industrial	$	268,812		$	270,074		$	280,569		$	308,647		$	352,042
Real estate:
Construction and development		350,024			318,035			307,797			309,746			264,002
Commercial real estate		749,603			674,558			622,842			633,353			608,464
Farmland		166,309			186,982			145,501			135,413			94,525
1-4 family residential		450,929			430,755			410,673			403,403			389,616
Multi-family residential		55,985			42,021			30,971			40,810			42,086
Consumer		56,433			52,670			50,965			52,992			51,795
Agricultural		14,502			14,403			14,639			14,199			14,608
Warehouse lending		25,344			24,260			43,720			71,823			72,582
Overdrafts		435			303			363			495			444
Total loans(1)(2)	$	2,138,376		$	2,014,061		$	1,908,040		$	1,970,881		$	1,890,164
	Quarter Ended
	2022						2021
(dollars in thousands)	June 30			March 31			December 31			September 30			June 30
ALLOWANCE FOR CREDIT LOSSES
Balance at beginning of period	$	29,096		$	30,433		$	30,621		$	31,548		$	32,770
Loans charged-off		(125	)		(203	)		(239	)		(244	)		(283	)
Recoveries		26			116			51			17			61
Provision for credit loss expense		—			(1,250	)		—			(700	)		(1,000	)
Balance at end of period	$	28,997		$	29,096		$	30,433		$	30,621		$	31,548
Allowance for credit losses / period-end loans		1.36	%		1.44	%		1.59	%		1.55	%		1.67	%
Allowance for credit losses / nonperforming loans		294.4			1,084.9			1,075.0			976.7			878.0
Net charge-offs / average loans (annualized)		0.02			0.02			0.04			0.05			0.05
NON-PERFORMING ASSETS
Non-accrual loans(3)	$	9,848		$	2,682		$	2,831		$	3,135		$	3,593
Other real estate owned		—			—			—			40			227
Repossessed assets owned		27			7			14			63			9
Total non-performing assets	$	9,875		$	2,689		$	2,845		$	3,238		$	3,829
Non-performing assets as a percentage of:
Total loans(1)(2)		0.46	%		0.13	%		0.15	%		0.16	%		0.20	%
Total loans, excluding PPP(1)(2)		0.46			0.13			0.15			0.17			0.22
Total assets		0.30			0.08			0.09			0.11			0.13
TDR loans - nonaccrual	$	45		$	98		$	103		$	84		$	86
TDR loans - accruing		9,371			9,418			9,466			9,522			9,535
(1) Excludes outstanding balances of loans held for sale of $2.8 million, $1.2 million, $4.1 million, $1.9 million, and $5.1 million as of June 30 and March 31, 2022 and December 31, September 30, June 30, 2021, respectively.
(2) Excludes deferred loan fees of $1.7 million, $1.5 million, $1.5 million, $2.0 million, and $2.3 million as of June 30 and March 31, 2022 and December 31, September 30, June 30, 2021, respectively.
(3) TDR loans - nonaccrual are included in nonaccrual loans, which are a component of nonperforming loans.

7

	Quarter Ended
	2022				2021
(dollars in thousands)	June 30		March 31		December 31		September 30		June 30
NONINTEREST INCOME
Service charges	$	1,070	$	976	$	1,085	$	1,003	$	855
Net realized gain on sale of loans		882		905		1,127		1,759		1,244
Fiduciary and custodial income		638		642		615		599		570
Bank-owned life insurance income		207		211		207		215		206
Merchant and debit card fees		2,061		1,611		1,669		1,620		1,922
Loan processing fee income		232		187		188		164		164
Warehouse lending fees		79		116		164		196		211
Mortgage fee income		102		131		133		145		157
Other noninterest income		810		1,700		850		748		641
Total noninterest income	$	6,081	$	6,479	$	6,038	$	6,449	$	5,970
NONINTEREST EXPENSE
Employee compensation and benefits	$	11,730	$	11,532	$	11,200	$	10,998	$	10,204
Occupancy expenses		2,848		2,711		2,686		2,738		2,833
Legal and professional fees		773		770		604		644		747
Software and technology		1,339		1,209		1,167		1,258		1,055
Amortization		178		219		222		253		336
Director and committee fees		219		205		204		197		167
Advertising and promotions		320		407		470		495		338
ATM and debit card expense		674		578		643		646		616
Telecommunication expense		187		186		196		197		180
FDIC insurance assessment fees		237		233		300		214		168
Other noninterest expense		1,189		1,029		1,284		1,647		1,059
Total noninterest expense	$	19,694	$	19,079	$	18,976	$	19,287	$	17,703

8

	Quarter Ended June 30,
	2022								2021
(dollars in thousands)	Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate			Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate
ASSETS
Interest-earning assets:
Total loans(1)	$	2,068,379		$	24,587		4.77	%	$	1,912,722		$	22,864		4.79	%
Securities available for sale		267,823			1,473		2.21			420,202			2,191		2.09
Securities held to maturity		596,013			2,666		1.79			—			—		—
Nonmarketable equity securities		14,128			289		8.20			10,056			164		6.54
Interest-bearing deposits in other banks		74,047			105		0.57			426,074			65		0.06
Total interest-earning assets		3,020,390			29,120		3.87			2,769,054			25,284		3.66
Allowance for credit losses		(29,056	)							(32,664	)
Noninterest-earning assets		218,106								202,554
Total assets	$	3,209,440							$	2,938,944
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing deposits	$	1,694,363		$	1,623		0.38	%	$	1,623,351		$	1,493		0.37	%
Advances from FHLB and fed funds purchased		47,016			190		1.62			49,063			102		0.83
Line of credit		—			—		—			2,374			21		3.55
Subordinated debt		52,326			453		3.47			19,810			188		3.81
Securities sold under agreements to repurchase		9,045			3		0.13			14,887			3		0.08
Total interest-bearing liabilities		1,802,750			2,269		0.50			1,709,485			1,807		0.42
Noninterest-bearing liabilities:
Noninterest-bearing deposits		1,090,288								916,631
Accrued interest and other liabilities		25,090								27,025
Total noninterest-bearing liabilities		1,115,378								943,656
Equity		291,312								285,803
Total liabilities and equity	$	3,209,440							$	2,938,944
Net interest rate spread(2)							3.37	%							3.24	%
Net interest income				$	26,851							$	23,477
Net interest margin(3)							3.57	%							3.40	%
Net interest margin, fully taxable equivalent(4)							3.61	%							3.44	%
(1) Includes average outstanding balances of loans held for sale of $2.6 million and $3.2 million for the quarter ended June 30, 2022 and 2021, 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.
(4) Net interest margin on a taxable equivalent basis is equal to net interest income adjusted for nontaxable income divided by average interest-earning assets, annualized, using a marginal tax rate of 21%.

9

	Six Months Ended June 30,
	2022								2021
(dollars in thousands)	Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate			Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate
ASSETS
Interest-earning assets:
Total loans(1)	$	2,003,053		$	46,859		4.72	%	$	1,899,864		$	47,059		4.99	%
Securities available for sale		377,132			3,091		1.65			399,255			4,282		2.16
Securities held to maturity		393,110			4,151		2.13			—			—		—
Nonmarketable equity securities		14,678			698		9.59			10,043			265		5.32
Interest-bearing deposits in other banks		203,738			214		0.21			380,455			191		0.10
Total interest-earning assets		2,991,711			55,013		3.71			2,689,617			51,797		3.88
Allowance for credit losses		(29,628	)							(32,951	)
Noninterest-earning assets		215,886								201,041
Total assets	$	3,177,969							$	2,857,707
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing deposits	$	1,702,216		$	2,865		0.34	%	$	1,591,784		$	3,096		0.39	%
Advances from FHLB and fed funds purchased		42,395			236		1.12			50,075			201		0.81
Line of credit		1,878			34		3.65			8,470			149		3.55
Subordinated debt		41,572			699		3.39			19,810			376		3.83
Securities sold under agreements to repurchase		9,976			5		0.10			18,013			7		0.08
Total interest-bearing liabilities		1,798,037			3,839		0.43			1,688,152			3,829		0.46
Noninterest-bearing liabilities:
Noninterest-bearing deposits		1,059,032								862,619
Accrued interest and other liabilities		24,680								25,206
Total noninterest-bearing liabilities		1,083,712								887,825
Equity		296,220								281,730
Total liabilities and equity	$	3,177,969							$	2,857,707
Net interest rate spread(2)							3.28	%							3.42	%
Net interest income				$	51,174							$	47,968
Net interest margin(3)							3.45	%							3.60	%
Net interest margin, fully taxable equivalent(4)							3.49	%							3.64	%
(1) Includes average outstanding balances of loans held for sale of $2.9 million and $3.7 million for the six months ended June 30, 2022 and 2021, 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.
(4) Net interest margin on a taxable equivalent basis is equal to net interest income adjusted for nontaxable income divided by average interest-earning assets, annualized, using a marginal tax rate of 21%.

10

NON-GAAP RECONCILING TABLES

Tangible Book Value per Common Share

	As of
	2022						2021
(dollars in thousands, except per share data)	June 30			March 31			December 31			September 30			June 30
Equity attributable to Guaranty Bancshares, Inc.	$	282,255		$	291,282		$	302,214		$	297,408		$	287,729
Adjustments:
Goodwill		(32,160	)		(32,160	)		(32,160	)		(32,160	)		(32,160	)
Core deposit intangible, net		(2,086	)		(2,199	)		(2,313	)		(2,426	)		(2,573	)
Total tangible common equity attributable to Guaranty Bancshares, Inc.	$	248,009		$	256,923		$	267,741		$	262,822		$	252,996
Common shares outstanding - end of quarter(1)		11,912,249			12,066,480			12,122,717			12,081,477			12,057,937
Book value per common share	$	23.69		$	24.14		$	24.93		$	24.62		$	23.86
Tangible book value per common share(1)		20.82			21.29			22.09			21.75			20.98

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

Net Core Earnings and Net Core Earnings per Common Share

	Quarter Ended
	2022						2021
(dollars in thousands, except per share data)	June 30			March 31			December 31			September 30			June 30
Net earnings attributable to Guaranty Bancshares, Inc.	$	10,784		$	10,738		$	9,159		$	9,253		$	10,432
Adjustments:
Provision for credit losses		—			(1,250	)		—			(700	)		(1,000	)
Income tax provision		2,472			2,235			1,923			2,179			2,312
PPP loans, including fees		(436	)		(783	)		(958	)		(1,005	)		(1,954	)
Net core earnings attributable to Guaranty Bancshares, Inc.	$	12,820		$	10,940		$	10,124		$	9,727		$	9,790
Weighted-average common shares outstanding, basic		11,968,227			12,109,074			12,097,100			12,067,769			12,056,550
Earnings per common share, basic	$	0.90		$	0.89		$	0.76		$	0.77		$	0.87
Net core earnings per common share, basic		1.07			0.90			0.84			0.81			0.81

Net Core Earnings to Average Assets, as Adjusted, and Average Equity

	Quarter Ended
	2022						2021
(dollars in thousands)	June 30			March 31			December 31			September 30			June 30
Net core earnings attributable to Guaranty Bancshares, Inc.	$	12,820		$	10,940		$	10,124		$	9,727		$	9,790
Total average assets	$	3,209,440		$	3,146,339		$	3,021,079		$	2,953,181		$	2,938,944
Adjustments:
PPP loan average balance		(8,885	)		(36,720	)		(61,062	)		(107,931	)		(155,417	)
Total average assets, adjusted	$	3,200,555		$	3,109,619		$	2,960,017		$	2,845,250		$	2,783,527
Net core earnings attributable to Guaranty Bancshares, Inc. to average assets, as adjusted (annualized)		1.61	%		1.43	%		1.36	%		1.36	%		1.41	%
Total average equity	$	291,312		$	301,579		$	301,398		$	295,076		$	285,803
Net core earnings attributable to Guaranty Bancshares, Inc. to average equity (annualized)		17.65	%		14.71	%		13.33	%		13.08	%		13.74	%

11

NON-GAAP RECONCILING TABLES

Total Non-Performing Assets to Total Loans, Excluding PPP

	Quarter Ended
	2022						2021
(dollars in thousands)	June 30			March 31			December 31			September 30			June 30
Total loans(1)(2)	$	2,138,376		$	2,014,061		$	1,908,040		$	1,970,881		$	1,890,164
Adjustments:
PPP loans balance		(2,605	)		(19,302	)		(50,611	)		(75,304	)		(127,390	)
Total loans, excluding PPP(1)(2)	$	2,135,771		$	1,994,759		$	1,857,429		$	1,895,577		$	1,762,774
Warehouse loans		(25,344	)		(24,260	)		(43,720	)		(71,823	)		(72,582	)
Total loans, excluding warehouse and PPP(1)(2)	$	2,110,427		$	1,970,499		$	1,813,709		$	1,823,754		$	1,690,192
Total non-performing assets	$	9,875		$	2,689		$	2,845		$	3,238		$	3,829
Non-performing assets as a percentage of:
Total loans(1)(2)		0.46	%		0.13	%		0.15	%		0.16	%		0.20	%
Total loans, excluding PPP(1)(2)		0.46			0.13			0.15			0.17			0.22
Total loans, excluding PPP and warehouse(1)(2)		0.47			0.14			0.16			0.18			0.23
(1) Excludes outstanding balances of loans held for sale of $2.8 million, $1.2 million, $4.1 million, $1.9 million, and $5.1 million as of June 30 and March 31, 2022 and December 31, September 30, June 30, 2021, respectively.
(2) Excludes deferred loan fees of $1.7 million, $1.5 million, $1.5 million, $2.0 million, and $2.3 million as of June 30 and March 31, 2022 and December 31, September 30, June 30, 2021, respectively.

Total Interest-Earning Assets, Net of PPP Effects

	Quarter Ended June 30, 2022									Quarter Ended June 30, 2021
(dollars in thousands)	Average Outstanding Balance			Interest Earned/ Interest Paid			Average Yield/ Rate			Average Outstanding Balance			Interest Earned/ Interest Paid			Average Yield/ Rate
Total interest-earning assets	$	3,020,390		$	29,120			3.87	%	$	2,769,054		$	25,284			3.66	%
Total loans		2,068,379			24,587			4.77			1,912,722			22,864			4.79
Adjustments:
PPP loan average balance and net fees(1)		(8,885	)		(436	)		19.68			(155,417	)		(1,747	)		4.51
Total loans, net of PPP effects		2,059,494			24,151			4.70			1,757,305			21,117			4.82
Total interest-earning assets, net of PPP effects	$	3,011,505		$	28,684			3.82	%	$	2,613,637		$	23,537			3.61	%
(1) Interest earned consists of interest income of $21,000 and $385,000, and net origination fees recognized in earnings of $415,000 and $1.4 million for the quarter ended June 30, 2022 and 2021, respectively.

	Quarter Ended March 31, 2022
(dollars in thousands)	Average Outstanding Balance			Interest Earned/ Interest Paid			Average Yield/ Rate
Total interest-earning assets	$	2,963,030		$	25,893			3.54	%
Total loans		1,937,000			22,272			4.66
Adjustments:
PPP loan average balance and net fees(1)		(36,720	)		(783	)		8.65
Total loans, net of PPP effects		1,900,280			21,489			4.59
Total interest-earning assets, net of PPP effects	$	2,926,310		$	25,110			3.48	%
(1) Interest earned consists of interest income of $89,000 and net origination fees recognized in earnings of $6904,000 million for the quarter ended March 31, 2022.

12

NON-GAAP RECONCILING TABLES

Net Interest Income and Net Interest Margin, Net of PPP Effects

(dollars in thousands)	Quarter Ended June 30, 2022			Quarter Ended March 31, 2022			Quarter Ended June 30, 2021
Net interest income	$	26,851		$	24,323		$	23,477
Adjustments:
PPP-related interest income		(21	)		(89	)		(385	)
PPP-related net origination fees		(415	)		(694	)		(1,362	)
Net interest income, net of PPP effects	$	26,415		$	23,540		$	21,730
Total average interest-earning assets	$	3,020,390		$	2,963,030		$	2,769,054
Total average interest-earning assets, net of PPP effects		3,011,505			2,926,310			2,613,637
Net interest margin(1)		3.57	%		3.33	%		3.40	%
Net interest margin, net of PPP effects(2)		3.52			3.26			3.33
Net interest income	$	26,851		$	24,323		$	23,477
Interest income tax adjustments		299			301			269
Net interest income, fully taxable equivalent ("FTE")	$	27,150		$	24,624		$	23,746
Net interest income, FTE, net of PPP effects		26,714			23,841			21,999
Net interest margin, FTE(3)		3.61	%		3.37	%		3.44	%
Net interest margin, FTE, net of PPP effects(4)		3.56			3.30			3.38
(1) Net interest margin is equal to net interest income divided by average interest-earning assets, annualized.
(2) Net interest margin is equal to net interest income, net of PPP effects, divided by average interest-earning assets, excluding average PPP loans, annualized. Taxes are not a part of this calculation.
(3) Net interest margin on a taxable equivalent basis is equal to net interest income adjusted for nontaxable income divided by average interest-earning assets, annualized, using a marginal tax rate of 21%.
(4) Net interest margin on a taxable equivalent basis is equal to net interest income, net of PPP effects, adjusted for nontaxable income divided by average interest-earning assets, excluding average PPP loans, annualized, using a marginal tax rate of 21%.

Efficiency Ratio, Net of PPP Effects

(dollars in thousands)	Quarter Ended June 30, 2022			Quarter Ended March 31, 2022			Quarter Ended June 30, 2021
Total noninterest expense	$	19,694		$	19,079		$	17,703
Adjustments:
PPP-related deferred costs		—			—			207
Total noninterest expense, net of PPP effects	$	19,694		$	19,079		$	17,910
Net interest income		26,851			24,323			23,477
Net interest income, net of PPP effects		26,415			23,540			21,730
Total noninterest income	$	6,081		$	6,479		$	5,970
Securities gains (losses)		—			—			—
Noninterest income, as adjusted	$	6,081		$	6,479		$	5,970
Efficiency ratio(1)		59.80	%		61.94	%		60.12	%
Efficiency ratio, net of PPP effects(2)		60.60			63.56			64.66
(1) 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.
(2) The efficiency ratio, net of PPP effects, was calculated by dividing total noninterest expense, net of PPP-related deferred costs, by net interest income, net of PPP effects, plus noninterest income, excluding securities gains or losses. Taxes are not part of this calculation.

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NON-GAAP RECONCILING TABLES

Loan Yield, Net of PPP Effects

	Quarter Ended June 30, 2022									Quarter Ended March 31, 2022
(dollars in thousands)	Average Outstanding Balance			Interest Earned/ Interest Paid			Average Yield/ Rate			Average Outstanding Balance			Interest Earned/ Interest Paid			Average Yield/ Rate
Total loans	$	2,068,379		$	24,587			4.77	%	$	1,937,000		$	22,272			4.66	%
Adjustments:
PPP loans average balance and net fees		(8,885	)		(436	)		19.68			(36,720	)		(783	)		8.65
Total loans, net of PPP effects	$	2,059,494		$	24,151			4.70	%	$	1,900,280		$	21,489			4.59	%
Effect of removing PPP loans on loan yield								(0.07	%)								(0.07	%)

	Quarter Ended June 30, 2022									Quarter Ended June 30, 2021
(dollars in thousands)	Average Outstanding Balance			Interest Earned/ Interest Paid			Average Yield/ Rate			Average Outstanding Balance			Interest Earned/ Interest Paid			Average Yield/ Rate
Total loans	$	2,068,379		$	24,587			4.77	%	$	1,912,722		$	22,864			4.79	%
Adjustments:
PPP loans average balance and net fees		(8,885	)		(436	)		19.68			(155,417	)		(1,747	)		4.51
Total loans, net of PPP effects	$	2,059,494		$	24,151			4.70	%	$	1,757,305		$	21,117			4.82	%
Effect of removing PPP loans on loan yield								(0.07	%)								0.03	%

ACL to Total Loans, Excluding PPP

(dollars in thousands)	As of June 30, 2022			As of March 31, 2022			As of June 30, 2021
Total loans	$	2,138,376		$	2,014,061		$	1,890,164
Adjustments:
PPP loans		(2,605	)		(19,302	)		(127,390	)
Total loans, excluding PPP	$	2,135,771		$	1,994,759		$	1,762,774
Allowance for credit losses	$	28,997		$	29,096		$	31,548
Allowance for credit losses / period-end loans		1.36	%		1.44	%		1.67	%
Allowance for credit losses / period-end loans. excluding PPP		1.36			1.46			1.79

About Non-GAAP Financial Measures

Certain of the financial measures and ratios we present, including “tangible book value per share”, “net core earnings,” “core net interest margin,” and PPP-adjusted metrics 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.

14

Conference Call Information

The Company will hold a conference call to discuss second quarter 2022 financial results on Monday, July 18, 2022 at 10:00 am Central Daylight Time. The conference call will be hosted by Ty Abston, Chairman and CEO, Cappy Payne, SEVP and Company CFO, and Shalene Jacobson, EVP and Bank CFO. All conference attendees must register before the call at www.gnty.com/earningscall. The conference materials will be available by accessing the Investor Relations page on our website, www.gnty.com. A recording of the conference call will be available by 1:00 pm Central Daylight Time the day of the call and remain available through July 31, 2022 on our Investor Relations webpage.

About Guaranty Bancshares, Inc.

Guaranty Bancshares, Inc. is the parent company for Guaranty Bank & Trust, N.A. Guaranty Bank & Trust has 32 banking locations across 26 Texas communities located within the East Texas, Dallas/Fort Worth, Houston and Central Texas regions of the state. As of June 30, 2022, Guaranty Bancshares, Inc. had total assets of $3.28 billion, total loans of $2.14 billion and total deposits of $2.78 billion. 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. Actual results may also be significantly impacted by the effects of the ongoing COVID-19 pandemic, including, among other effects: the impact of the public health crisis; the operation of financial markets; global supply chain disruption; employment levels; market liquidity; the impact of various actions taken in response by the U.S. federal government, the Federal Reserve, other banking regulators, state and local governments; and the impact that all of these factors have on our borrowers, other customers, vendors and counterparties. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Such factors include, without limitation, the “Risk Factors” referenced in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, other risks and uncertainties listed from time to time in our reports and documents filed with the Securities and Exchange Commission ("SEC"). We can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this communication, and we do not intend, and assume no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.

Contact Information:

Cappy Payne

Senior Executive Vice President and Chief Financial Officer

Guaranty Bancshares, Inc.

(888) 572-9881

investors@gnty.com

15

EX-99.2

 

 

 

 

 

 

 

 

 

 

 

XML

Document And Entity Information	Jul. 18, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 18, 2022
Entity Registrant Name	GUARANTY BANCSHARES, INC.
Entity Central Index Key	0001058867
Entity Emerging Growth Company	true
Entity File Number	001-38087
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	75-1656431
Entity Address, Address Line One	16475 Dallas Parkway
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Addison
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75001
City Area Code	888
Local Phone Number	572-9881
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Ex Transition Period	true
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	GNTY
Security Exchange Name	NASDAQ