Attached files
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| 8-K - 8-K GNTY 12.31.17 EARNINGS RELEASE - GUARANTY BANCSHARES INC /TX/ | gnty201712318-k.htm |
Exhibit 99.1
Press Release
For Immediate Release
Guaranty Bancshares, Inc. Reports
Fourth Quarter and Year-End 2017 Financial Results
MOUNT PLEASANT, Texas, January 26, 2018 /GlobeNewswire/ -- 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 assets | 0.85 | % | 0.76 | % | |||
Return on average equity | 8.70 | 7.78 | |||||
Earnings per common share, basic | $ | 1.58 | $ | 1.41 | |||
Earnings per common share, diluted | 1.56 | 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 sold | 26,175 | 34,250 | 17,700 | 83,175 | 60,600 | ||||||||||||||
Interest-bearing deposits | 24,771 | 27,075 | 29,217 | 28,006 | 27,338 | ||||||||||||||
Total cash and cash equivalents | 91,428 | 95,061 | 83,306 | 143,757 | 127,543 | ||||||||||||||
Securities available for sale | 232,372 | 238,133 | 246,233 | 214,463 | 156,925 | ||||||||||||||
Securities held to maturity | 174,684 | 179,081 | 182,248 | 185,837 | 189,371 | ||||||||||||||
Loans held for sale | 1,896 | 3,400 | 2,435 | 1,446 | 2,563 | ||||||||||||||
Loans, net | 1,347,779 | 1,294,847 | 1,284,318 | 1,241,215 | 1,233,651 | ||||||||||||||
Accrued interest receivable | 8,174 | 6,440 | 7,631 | 6,304 | 7,419 | ||||||||||||||
Premises and equipment, net | 43,818 | 43,958 | 44,491 | 44,823 | 44,810 | ||||||||||||||
Other real estate owned | 2,244 | 1,929 | 1,733 | 1,637 | 1,692 | ||||||||||||||
Cash surrender value of life insurance | 19,117 | 18,376 | 18,035 | 17,922 | 17,804 | ||||||||||||||
Deferred tax asset | 2,543 | 4,267 | 4,121 | 4,426 | 4,892 | ||||||||||||||
Core deposit intangible, net | 2,724 | 2,870 | 3,016 | 3,162 | 3,308 | ||||||||||||||
Goodwill | 18,742 | 18,742 | 18,742 | 18,742 | 18,742 | ||||||||||||||
Other assets | 17,103 | 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 deposits | 1,266,311 | 1,211,624 | 1,258,648 | 1,300,361 | 1,218,039 | ||||||||||||||
Total deposits | 1,676,320 | 1,617,302 | 1,646,373 | 1,671,171 | 1,576,791 | ||||||||||||||
Securities sold under agreements to repurchase | 12,879 | 12,920 | 14,153 | 12,663 | 10,859 | ||||||||||||||
Accrued interest and other liabilities | 7,117 | 7,601 | 7,921 | 7,595 | 6,006 | ||||||||||||||
Other debt | — | — | — | 18,929 | 18,286 | ||||||||||||||
Federal Home Loan Bank advances | 45,153 | 65,157 | 25,161 | 25,165 | 55,170 | ||||||||||||||
Subordinated debentures | 13,810 | 13,810 | 14,310 | 19,310 | 19,310 | ||||||||||||||
Total liabilities | 1,755,279 | 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' equity | 207,345 | 207,263 | 204,551 | 146,366 | 141,914 | ||||||||||||||
Less: KSOP-owned shares (1) | — | — | — | 34,300 | 31,661 | ||||||||||||||
Total shareholders' equity | 207,345 | 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 expense | 3,201 | 3,063 | 2,993 | 2,895 | 2,692 | ||||||||||||||
Net interest income | 15,488 | 15,102 | 14,799 | 14,241 | 14,025 | ||||||||||||||
Provision for loan losses | 600 | 800 | 800 | 650 | 400 | ||||||||||||||
Net interest income after provision for loan losses | 14,888 | 14,302 | 13,999 | 13,591 | 13,625 | ||||||||||||||
Noninterest income | 3,779 | 3,702 | 3,516 | 3,282 | 3,414 | ||||||||||||||
Noninterest expense | 12,265 | 12,166 | 11,906 | 12,045 | 12,040 | ||||||||||||||
Income before income taxes | 6,402 | 5,838 | 5,609 | 4,828 | 4,999 | ||||||||||||||
Income tax provision | 3,594 | 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, diluted | 0.25 | 0.37 | 0.39 | 0.40 | 0.40 | ||||||||||||||
Cash dividends per common share | 0.14 | 0.13 | 0.26 | — | 0.26 | ||||||||||||||
Book value per common share - end of quarter | 18.75 | 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 quarter | 11,058,956 | 11,058,956 | 11,058,956 | 8,753,933 | 8,751,923 | ||||||||||||||
Weighted-average common shares outstanding, basic | 11,058,956 | 11,058,956 | 10,019,049 | 8,751,945 | 8,968,262 | ||||||||||||||
Weighted-average common shares outstanding, diluted | 11,162,329 | 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 expense | 12,152 | 10,868 | |||||||||||||||||
Net interest income | 59,630 | 53,840 | |||||||||||||||||
Provision for loan losses | 2,850 | 3,640 | |||||||||||||||||
Net interest income after provision for loan losses | 56,780 | 50,200 | |||||||||||||||||
Noninterest income | 14,279 | 13,016 | |||||||||||||||||
Noninterest expense | 48,382 | 46,380 | |||||||||||||||||
Income before income taxes | 22,677 | 16,836 | |||||||||||||||||
Income tax provision | 8,238 | 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, diluted | 1.40 | 1.35 | |||||||||||||||||
Cash dividends per common share | 0.54 | 0.52 | |||||||||||||||||
Book value per common share - end of quarter | 18.75 | 16.22 | |||||||||||||||||
Common shares outstanding - end of quarter | 11,058,956 | 8,751,923 | |||||||||||||||||
Weighted-average common shares outstanding, basic | 10,230,840 | 8,968,262 | |||||||||||||||||
Weighted-average common shares outstanding, diluted | 10,313,369 | 8,976,328 | |||||||||||||||||
PERFORMANCE RATIOS | |||||||||||||||||||
Return on average assets | 0.76 | % | 0.68 | % | |||||||||||||||
Return on average equity | 7.78 | 8.34 | |||||||||||||||||
Net interest margin | 3.38 | 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 development | 196,774 | 201,542 | 178,041 | 153,227 | 129,631 | ||||||||||||||
Commercial real estate | 418,137 | 393,710 | 379,083 | 373,252 | 368,077 | ||||||||||||||
Farmland | 59,023 | 54,351 | 63,841 | 62,133 | 62,366 | ||||||||||||||
1-4 family residential | 374,371 | 364,530 | 355,121 | 359,565 | 361,665 | ||||||||||||||
Multi-family residential | 36,574 | 23,259 | 28,858 | 23,943 | 26,079 | ||||||||||||||
Consumer | 51,267 | 51,379 | 51,244 | 52,755 | 53,177 | ||||||||||||||
Agricultural | 25,596 | 24,449 | 21,854 | 21,473 | 18,901 | ||||||||||||||
Overdrafts | 294 | 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 | ) | |||||||||
Recoveries | 710 | 132 | 99 | 42 | 161 | ||||||||||||||
Provision for loan losses | 600 | 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 loans | 0.95 | % | 0.96 | % | 0.97 | % | 0.95 | % | 0.92 | % | |||||||||
Allowance for loan losses / nonperforming loans | 321.2 | 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 owned | 2,244 | 1,929 | 1,733 | 1,637 | 1,692 | ||||||||||||||
Repossessed assets owned | 2,466 | 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 assets | 0.44 | 0.53 | 0.48 | 0.43 | 0.53 | ||||||||||||||
Restructured loans-nonaccrual | $ | — | $ | — | $ | — | $ | 42 | $ | 43 | |||||||||
Restructured loans-accruing | 657 | 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 transactions | 142 | — | 25 | — | — | ||||||||||||||
Net realized gain on sale of loans | 491 | 589 | 472 | 429 | 487 | ||||||||||||||
Fiduciary income | 408 | 362 | 343 | 350 | 347 | ||||||||||||||
Bank-owned life insurance income | 114 | 116 | 114 | 117 | 116 | ||||||||||||||
Merchant and debit card fees | 818 | 778 | 791 | 732 | 715 | ||||||||||||||
Loan processing fee income | 143 | 146 | 163 | 145 | 149 | ||||||||||||||
Other noninterest income | 718 | 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 expenses | 1,848 | 1,938 | 1,866 | 1,748 | 1,674 | ||||||||||||||
Legal and professional fees | 589 | 692 | 419 | 361 | 577 | ||||||||||||||
Software and technology | 556 | 533 | 517 | 483 | 502 | ||||||||||||||
Amortization | 252 | 258 | 259 | 264 | 261 | ||||||||||||||
Director and committee fees | 304 | 253 | 248 | 259 | 260 | ||||||||||||||
Advertising and promotions | 314 | 303 | 335 | 241 | 263 | ||||||||||||||
ATM and debit card expense | 133 | 253 | 264 | 249 | 228 | ||||||||||||||
Telecommunication expense | 114 | 128 | 141 | 143 | 171 | ||||||||||||||
FDIC insurance assessment fees | 144 | 162 | 174 | 191 | 300 | ||||||||||||||
Other noninterest expense | 1,089 | 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 transactions | 167 | 82 | |||||||||||||||||
Net realized gain on sale of loans | 1,981 | 1,718 | |||||||||||||||||
Fiduciary income | 1,463 | 1,405 | |||||||||||||||||
Bank-owned life insurance income | 461 | 453 | |||||||||||||||||
Merchant and debit card fees | 3,119 | 2,741 | |||||||||||||||||
Loan processing fee income | 597 | 622 | |||||||||||||||||
Other noninterest income | 2,745 | 2,465 | |||||||||||||||||
Total noninterest income | $ | 14,279 | $ | 13,016 | |||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||
Employee compensation and benefits | $ | 27,078 | $ | 25,611 | |||||||||||||||
Occupancy expenses | 7,400 | 6,870 | |||||||||||||||||
Legal and professional fees | 2,061 | 1,935 | |||||||||||||||||
Software and technology | 2,089 | 1,870 | |||||||||||||||||
Amortization | 1,033 | 980 | |||||||||||||||||
Director and committee fees | 1,064 | 940 | |||||||||||||||||
Advertising and promotions | 1,193 | 1,015 | |||||||||||||||||
ATM and debit card expense | 899 | 933 | |||||||||||||||||
Telecommunication expense | 526 | 609 | |||||||||||||||||
FDIC insurance assessment fees | 671 | 1,200 | |||||||||||||||||
Other noninterest expense | 4,368 | 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 sale | 241,458 | 1,403 | 2.31 | 143,655 | 666 | 1.84 | |||||||||||||||
Securities held to maturity | 177,447 | 1,069 | 2.39 | 191,530 | 1,129 | 2.34 | |||||||||||||||
Nonmarketable equity securities | 7,495 | 86 | 4.55 | 8,831 | 78 | 3.50 | |||||||||||||||
Interest-bearing deposits in other banks | 63,997 | 232 | 1.44 | 89,271 | 136 | 0.60 | |||||||||||||||
Total interest-earning assets | 1,814,798 | 18,689 | 4.09 | 1,676,160 | 16,717 | 3.96 | |||||||||||||||
Allowance for loan losses | (12,743 | ) | (11,340 | ) | |||||||||||||||||
Noninterest-earnings assets | 145,069 | 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 purchased | 59,938 | 178 | 1.18 | 55,391 | 59 | 0.42 | |||||||||||||||
Other debt | — | — | — | 12,281 | 134 | 4.33 | |||||||||||||||
Subordinated debentures | 13,810 | 165 | 4.74 | 19,332 | 226 | 4.64 | |||||||||||||||
Securities sold under agreements to repurchase | 14,402 | 15 | 0.41 | 15,235 | 14 | 0.36 | |||||||||||||||
Total interest-bearing liabilities | 1,322,082 | 3,201 | 0.96 | 1,296,122 | 2,692 | 0.82 | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Noninterest-bearing deposits | 408,959 | 359,557 | |||||||||||||||||||
Accrued interest and other liabilities | 6,638 | 6,310 | |||||||||||||||||||
Total noninterest-bearing liabilities | 415,597 | 365,867 | |||||||||||||||||||
Shareholders’ equity | 209,445 | 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 sale | 223,095 | 5,081 | 2.28 | 198,372 | 3,723 | 1.88 | |||||||||||||||
Securities held to maturity | 182,549 | 4,409 | 2.42 | 182,870 | 4,678 | 2.56 | |||||||||||||||
Nonmarketable equity securities | 7,134 | 465 | 6.52 | 8,547 | 271 | 3.17 | |||||||||||||||
Interest-bearing deposits in other banks | 70,692 | 813 | 1.15 | 78,232 | 471 | 0.60 | |||||||||||||||
Total interest-earning assets | 1,766,723 | 71,782 | 4.06 | 1,647,959 | 64,708 | 3.93 | |||||||||||||||
Allowance for loan losses | (12,217 | ) | (10,826 | ) | |||||||||||||||||
Noninterest-earnings assets | 144,971 | 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 purchased | 46,268 | 472 | 1.02 | 62,961 | 299 | 0.47 | |||||||||||||||
Other debt | 6,711 | 301 | 4.49 | 13,198 | 586 | 4.44 | |||||||||||||||
Subordinated debentures | 15,902 | 724 | 4.55 | 20,313 | 882 | 4.34 | |||||||||||||||
Securities sold under agreements to repurchase | 13,306 | 51 | 0.38 | 13,011 | 51 | 0.39 | |||||||||||||||
Total interest-bearing liabilities | 1,323,302 | 12,152 | 0.92 | 1,285,003 | 10,868 | 0.85 | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Noninterest-bearing deposits | 384,049 | 340,240 | |||||||||||||||||||
Accrued interest and other liabilities | 6,648 | 6,080 | |||||||||||||||||||
Total noninterest-bearing liabilities | 390,697 | 346,320 | |||||||||||||||||||
Shareholders’ equity | 185,478 | 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 share | 15.59 | 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.