Form 8-K - Current report

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)

January 16, 2024

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	New York Stock Exchange

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 January 16, 2024 (the “Press Release”) announcing the Company’s financial results for the fiscal quarter ended December 31, 2023. A copy of the Press Release is attached as Exhibit 99.1.

Item 7.01. Regulation FD Disclosure.

On January 16, 2024, the Company will host a conference call with respect to financial results for the fiscal quarter and year ended December 31, 2023. 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 January 16, 2024, reporting fourth quarter and year-end 2023 financial results
99.2		Earnings Call Presentation materials, dated January 16, 2024
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:		January 16, 2024

		GUARANTY BANCSHARES, INC.

By:		/s/ Tyson T. Abston
Name:		Tyson T. Abston
Title:		Chairman of the Board and Chief Executive Officer

Exhibit 99.1

Press Release

For Immediate Release

Guaranty Bancshares, Inc. Reports

Fourth Quarter and Year-End 2023 Financial Results

Addison, Texas – January 16, 2024 / Business Wire / – Guaranty Bancshares, Inc. (NYSE: GNTY) (the "Company"), the parent company of Guaranty Bank & Trust, N.A. (the "Bank"), today reported financial results for the fiscal quarter and year ended December 31, 2023. The Company's net income available to common shareholders was $5.9 million, or $0.51 per basic share, for the quarter ended December 31, 2023, compared to $6.3 million, or $0.54 per basic share, for the quarter ended September 30, 2023 and $8.0 million, or $0.67 per basic share, for the quarter ended December 31, 2022. Return on average assets and average equity for the fourth quarter of 2023 were 0.73% and 7.93%, respectively, compared to 0.78% and 8.43%, respectively, for the third quarter of 2023 and 0.95% and 10.88%, respectively, for the fourth quarter of 2022. The decrease in earnings during the fourth quarter of 2023 compared to the third quarter of 2023 was primarily due to fluctuations in general operating expenses. The decrease in earnings in the fourth quarter of 2023 compared to the fourth quarter of 2022 was primarily due to lower net interest income in the current quarter, offset by a $2.8 million provision for credit losses in the prior year quarter.

"Despite the many industry headwinds in 2023, our earnings were relatively good. Our net interest margin hit its lowest point in 2023 during the third quarter but has steadily increased each month in the fourth quarter as our loans reprice and cost of non-maturing deposits remain steady. Our balance sheet is strong and our earnings stream continues to produce consistent results. Non-performing assets remain very low and although we anticipate the need to work with some borrowers as their loan rates adjust, we do not foresee any significant problems as a result of the higher interest rate environment or economic slowdown at this point. We are looking forward to 2024 and have built a balance sheet that will allow us to grow and capitalize on new opportunities when the timing is right and economic conditions become less uncertain. Our liquidity and capital remains very healthy and we continue to focus on driving long term shareholder value," said Ty Abston, the Company's Chairman and Chief Executive Officer.

QUARTERLY AND ANNUAL HIGHLIGHTS

•

Strong Asset Quality. Nonperforming assets as a percentage of total assets were 0.18% at December 31, 2023, compared to 0.09% at September 30, 2023 and 0.32% at December 31, 2022. Net charge-offs (annualized) to average loans were 0.04% for the quarter ended December 31, 2023, compared to 0.11% for the quarter ended September 30, 2023, and 0.01% for the quarter ended December 31, 2022. Net charge-offs to average loans for the years ending December 31, 2023 and 2022 were 0.04% and 0.03%, respectively.

Commercial real estate (CRE) loans, particularly office related loans, have received increased scrutiny in recent months. Our CRE loans and real estate C&D loans represent 39.7% and 12.8% of the total loan portfolio, respectively. Office-related loans represent 4.6% of the total loan portfolio and have an average balance of $515,000.

•

Granular and Stable Core Deposit Base. As of December 31, 2023, we have 87,664 total deposit accounts with an average account balance of $30,038. We have a historically reliable core deposit base, with strong and trusted banking relationships. Total deposits decreased by $25.0 million during the fourth quarter, which consisted primarily of a decrease in DDA balances of $48.6 million, a decrease in time deposits of $8.1 million and offset by an increase in savings and MMDA balances of $33.5 million. The decrease in time deposits resulted in part due to $25.0 million in brokered CDs that matured and were not renewed during the fourth quarter. The Bank has not historically used brokered deposits and does not foresee a reliance on them going forward, however, our year-end deposit balance does include $25.0 million of brokered deposits that mature in February 2024 and were issued, along with the $25.0 million that matured in the fourth quarter, to test their availability as a contingent liquidity source. Excluding public funds and bank-owned accounts, our uninsured deposits as of December 31, 2023 were 25.07% of total deposits.

Interest rates paid on deposits during the quarter stabilized with minimal increases. Despite the decrease in DDA during the quarter, noninterest-bearing deposits still represent 32.4% of total deposits. Our cost of interest-bearing deposits increased 17 basis points during the quarter from 3.00% in the prior quarter to 3.17%, representing a beta on interest-bearing deposits of approximately 62.7% for the linked quarter compared to the federal funds target rates. These increases are primarily due to renewals of maturing certificates of deposit into new CD's paying higher rates. Our cost of total deposits for the fourth quarter of 2023 increased 16 basis points from 1.98% in the prior quarter to 2.14%, representing a beta on total deposits of approximately 59.0% for the linked quarter.

•

Healthy Capital and Liquidity. Our capital and liquidity ratios, as well as contingent liquidity sources, remain very healthy. During the fourth quarter of 2023, we repurchased 24,800 shares, or 0.21% of average shares outstanding during the period, at an average price of $27.76 per share. During the year, we repurchased 434,798 shares at an average price of $25.82 per share. Our liquidity ratio, calculated as cash and cash equivalents and unpledged investments divided by total liabilities, was 12.2% as of December 31, 2023, compared to 14.5% as of December 31, 2022. Our total available contingent liquidity, net of current outstanding borrowings, is $1.2 billion, consisting of FHLB, FRB and correspondent bank fed funds and revolving lines of credit.

Finally, our total equity to average quarterly assets as of December 31, 2023 was 9.5%. If we had to recognize our entire unrealized losses on both AFS and HTM securities, our total equity to average assets ratio would be 8.8%†, which is still a strong capital level under regulatory requirements.

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

RESULTS OF OPERATIONS

Net interest income, before the provision for credit losses, in the fourth quarter of 2023 and 2022 was $23.8 million and $28.4 million, respectively, a decrease of $4.5 million, or 16.0%. The decrease in net interest income resulted from an increase in interest expense of $9.6 million, or 130.7%, compared to the prior year quarter, which was partially offset by an increase in interest income of $5.1 million, or 14.2%, from the same quarter in the prior year. The increases in both interest income and expense resulted primarily from higher rates during the period. Interest expense was also impacted by a shift from noninterest-bearing to interest-bearing deposit accounts, which resulted in increased expense in the fourth quarter of 2023 compared to the prior year quarter.

Net interest margin, on a fully taxable equivalent basis, for the fourth quarter of 2023 and 2022 was 3.11% and 3.57%, respectively. Net interest margin decreased 46 basis points primarily due to interest-bearing liabilities repricing faster than our interest-earning assets and a shift from no or lower interest cost DDA and money market accounts to higher cost certificates of deposit. The cost of interest-bearing liabilities increased 184 basis points from the prior year quarter, while interest earning asset yields increased 90 basis points. The increase in the cost of interest-bearing liabilities was due primarily to an increase in the cost of interest-bearing deposits from 1.08% to 3.17%, a change of 209 basis points, in the fourth quarter of 2023 compared to the same period in 2022, as well as increased rates on FHLB advances, which increased from 3.97% to 5.40%, an increase of 143 basis points, from the prior year quarter. The increases in cost were partially offset by increases in yield on the loan portfolio from 5.19% to 6.06%, or 87 basis points, as well as 38 and 34 basis point increases in yield on AFS and HTM securities, respectively. Although the cost of interest-bearing liabilities have repriced more quickly during this period, the weighted average yield on $89.6 million in new loans originated in the fourth quarter was 8.61%.

Net interest income, before the provision for credit losses, increased $511,000, or 2.2%, from $23.3 million in the third quarter of 2023 to $23.8 million in the fourth quarter of 2023. The increase in net interest income resulted primarily from an increase in interest income of $978,000, or 2.5%, partially offset by an increase in interest expense of $467,000, or 2.8%. The increase in interest income was primarily due to higher interest earned on loans of $808,000, or 2.3%, from the prior quarter and higher interest earned on securities of $103,000, or 2.5%. The increase in interest expense resulted primarily from an increase of $1.2 million, or 9.5%, in interest-bearing deposit expense, partially offset by a decrease in FHLB advances expense of $673,000, or 26.0%, and a decrease in interest expense on other borrowed money of $102,000, or 31.4%, from the prior quarter.

Net interest margin, on a taxable equivalent basis, increased from 3.02% for the third quarter of 2023 to 3.11% for the fourth quarter of 2023, an increase of nine basis points. The increase in net interest margin was primarily due to an increase on loan yield from 5.91% for the third quarter of 2023 to 6.06% for the fourth quarter of 2023, a change of 15 basis points. This increase was partially offset by an increase in the cost of interest-bearing deposits from 3.00% in the third quarter to 3.17% in the fourth quarter of 2023, a change of 17 basis points.

We recorded no provision for credit losses during 2023. During the fourth quarter of 2022, we recorded a $2.8 million provision to incorporate forecasts for an economic downturn and possible borrower stressors into our CECL model. The factors that were adjusted in the fourth quarter of 2022 remain relevant, however certain minor adjustments were made in subsequent quarters to reflect current portfolio credit quality trends. As of December 31, 2023 and December 31, 2022, our allowance for credit losses as a percentage of total loans was 1.33% and 1.34%, respectively.

Noninterest income decreased $326,000, or 6.4%, in the fourth quarter of 2023 to $4.8 million, compared to $5.1 million for the fourth quarter of 2022. The decrease from the same quarter in 2022 was partially due to a gain on securities sold of $172,000 in the prior year quarter and no gain on securities sales in the current quarter. There was also a decrease in the gain on sale of loans of $114,000, or 36.8% along with a $51,000, or 63.0%, decrease in mortgage fee income compared to the same quarter in the prior year.

Noninterest expense increased $505,000, or 2.4%, in the fourth quarter of 2023 to $21.4 million, compared to $20.9 million for the fourth quarter of 2022. The increase in noninterest expense in the fourth quarter of 2023 was driven primarily by a $351,000, or 2.8%, increase in employee compensation and benefits, an increase in software and technology expense of $215,000, or 14.1%, and a $175,000, or 22.5%, increase in legal and professional fees primarily related to recruiting fees compared to the fourth quarter of 2022. These were partially offset by a $136,000, or 27.9%, decrease in advertising and promotions expense.

Noninterest income in the fourth quarter of 2023 decreased by $143,000, or 2.9%, from $4.9 million in the third quarter of 2023. The decrease is primarily due to a decrease in other noninterest income of $62,000, or 8.2%, primarily the result of decreased credit card income during the period. Gain on sale of loans decreased $22,000, or 10.1%, while bank-owned life insurance income decreased $17,000, or 6.4%. Additionally, mortgage fee income fell $16,000, or 34.8%, and loan processing fee income decreased $12,000, or 9.4% from the third quarter.

Noninterest expense increased $888,000, or 4.3%, in the fourth quarter of 2023, from $20.5 million for the quarter ended September 30, 2023. The increase resulted from an increase of $771,000, or 6.5%, in employee compensation and benefits primarily due to annual raises, which went into effect during the fourth quarter. There was also a $250,000, or 16.8%, increase in software and technology

expense and a $64,000, or 22.2%, increase in advertising and promotions expense during the fourth quarter of 2023 compared to the third quarter of 2023. These increases were partially offset by a $203,000, or 6.9%, decrease in occupancy expenses due to lower than anticipated property taxes payable and a reverse accrual posted in the fourth quarter, compared with the third quarter of 2023.

The Company’s efficiency ratio in the fourth quarter of 2023 was 74.81%, compared to 62.42% in the prior year quarter and 72.64% in the third quarter of 2023.

FINANCIAL CONDITION

Consolidated assets for the Company totaled $3.18 billion at December 31, 2023, compared to $3.23 billion at September 30, 2023 and $3.35 billion at December 31, 2022.

Gross loans increased slightly by $4.3 million, or 0.19%, during the quarter resulting in a gross loan balance of $2.32 billion at both December 31, 2023 and September 30, 2023. Our loan growth is entirely due to organic loan growth during the quarter and not to purchases of assets.

Gross loans decreased $55.6 million, or 2.3%, from $2.38 billion at December 31, 2022. The decrease in gross loans during the fourth quarter of 2023 compared to the fourth quarter of 2022 resulted from tightened credit underwriting standards and loan terms, along with fewer borrower requests in response to higher interest rates. Additionally, there was a $10.7 million decrease in warehouse lending loans, as we discontinued that line of business in the second quarter of 2023.

Total deposits decreased by $25.0 million, or 0.9%, to $2.63 billion at December 31, 2023, compared to $2.66 billion at September 30, 2023, and decreased $47.9 million, or 1.8%, from $2.68 billion at December 31, 2022. The decrease in deposits during the fourth quarter resulted from a decrease in noninterest-bearing deposits of $50.4 million, offset by an increase in interest-bearing deposits of $25.4 million. We also allowed $25.0 million in brokered certificates of deposit to mature and not renew during the fourth quarter of 2023. The decrease in deposits during the current quarter compared to the prior year quarter resulted primarily from a decrease in noninterest-bearing deposits of $199.2 million, partially offset by an increase in interest-bearing deposits of $151.3 million.

Nonperforming assets as a percentage of total loans were 0.25% at December 31, 2023, compared to 0.13% at September 30, 2023 and 0.46% at December 31, 2022. Nonperforming assets as a percentage of total assets were 0.18% at December 31, 2023, compared to 0.09% at September 30, 2023, and 0.32% at December 31, 2022. The Bank's nonperforming assets consist primarily of nonaccrual loans. The decrease in nonperforming assets compared to the prior year end is primarily due to the resolution of several lower balance nonperforming assets during 2023.

Total equity was $303.8 million as of December 31, 2023, compared to $296.8 million at September 30, 2023 and $295.6 million at December 31, 2022. The increase from the previous quarter resulted primarily from net income of $5.9 million and a reduction in accumulated other comprehensive loss of $4.2 million due to increases in the fair value of available for sale securities during the period. This was partially offset by the payment of dividends of $2.7 million during the fourth quarter of 2023.


	As of
	2023								2022
(dollars in thousands)	December 31		September 30		June 30		March 31		December 31
ASSETS
Cash and due from banks	$	47,744	$	47,922	$	47,663	$	59,030	$	52,390
Federal funds sold		36,575		73,275		44,950		95,400		47,275
Interest-bearing deposits		5,205		8,980		4,738		3,695		6,802
Total cash and cash equivalents		89,524		130,177		97,351		158,125		106,467
Securities available for sale		196,195		178,644		166,596		173,744		188,927
Securities held to maturity		404,208		408,308		437,292		476,105		509,008
Loans held for sale		976		2,506		795		1,260		3,156
Loans, net		2,290,881		2,286,163		2,300,882		2,344,240		2,344,245
Accrued interest receivable		13,143		11,307		11,110		10,443		11,555
Premises and equipment, net		57,018		56,712		56,151		55,457		54,291
Other real estate owned		—		—		—		38		38
Cash surrender value of life insurance		42,348		42,096		41,830		38,619		38,404
Core deposit intangible, net		1,418		1,524		1,633		1,746		1,859
Goodwill		32,160		32,160		32,160		32,160		32,160
Other assets		56,920		80,816		60,396		64,350		61,385
Total assets	$	3,184,791	$	3,230,413	$	3,206,196	$	3,356,287	$	3,351,495
LIABILITIES AND EQUITY
Deposits
Noninterest-bearing	$	852,957	$	903,391	$	915,462	$	992,527	$	1,052,144
Interest-bearing		1,780,289		1,754,902		1,687,355		1,630,841		1,629,010
Total deposits		2,633,246		2,658,293		2,602,817		2,623,368		2,681,154
Securities sold under agreements to repurchase		25,172		19,366		20,532		13,338		7,221
Accrued interest and other liabilities		32,242		31,218		30,701		30,125		28,409
Line of credit		4,500		2,000		12,000		—		—
Federal Home Loan Bank advances		140,000		175,000		195,000		340,000		290,000
Subordinated debentures		45,785		47,752		47,719		49,186		49,153
Total liabilities		2,880,945		2,933,629		2,908,769		3,056,017		3,055,937

Equity attributable to Guaranty Bancshares, Inc.		303,300		296,226		296,862		299,700		294,984
Noncontrolling interest		546		558		565		570		574
Total equity		303,846		296,784		297,427		300,270		295,558
Total liabilities and equity	$	3,184,791	$	3,230,413	$	3,206,196	$	3,356,287	$	3,351,495


	Quarter Ended
	2023												2022
(dollars in thousands, except per share data)	December 31			September 30			June 30			March 31			December 31
STATEMENTS OF EARNINGS
Interest income	$	40,796		$	39,818		$	38,734		$	37,144		$	35,720
Interest expense		16,983			16,516			14,031			11,982			7,362
Net interest income		23,813			23,302			24,703			25,162			28,358
Provision for credit losses		—			—			—			—			2,800
Net interest income after provision for credit losses		23,813			23,302			24,703			25,162			25,558
Noninterest income		4,796			4,939			7,873			4,905			5,122
Noninterest expense		21,402			20,514			20,471			19,967			20,897
Income before income taxes		7,207			7,727			12,105			10,100			9,783
Income tax provision		1,341			1,437			2,529			1,823			1,764
Net earnings	$	5,866		$	6,290		$	9,576		$	8,277		$	8,019
Net loss attributable to noncontrolling interest		12			7			5			4			3
Net earnings attributable to Guaranty Bancshares, Inc.	$	5,878		$	6,297		$	9,581		$	8,281		$	8,022

PER COMMON SHARE DATA
Earnings per common share, basic	$	0.51		$	0.54		$	0.82		$	0.69		$	0.67
Earnings per common share, diluted		0.51			0.54			0.81			0.69			0.67
Cash dividends per common share		0.23			0.23			0.23			0.23			0.22
Book value per common share - end of quarter		26.28			25.64			25.58			25.13			24.70
Tangible book value per common share - end of quarter(1)		23.37			22.72			22.67			22.29			21.85
Common shares outstanding - end of quarter(4)		11,540,644			11,554,094			11,603,167			11,925,357			11,941,672
Weighted-average common shares outstanding, basic		11,536,878			11,568,897			11,735,475			11,939,593			11,938,973
Weighted-average common shares outstanding, diluted		11,589,165			11,619,342			11,756,512			12,012,004			12,048,475

PERFORMANCE RATIOS
Return on average assets (annualized)		0.73	%		0.78	%		1.17	%		1.01	%		0.95	%
Return on average equity (annualized)		7.93			8.43			12.87			11.18			10.88
Net interest margin, fully taxable equivalent (annualized)(2)		3.11			3.02			3.19			3.24			3.57
Efficiency ratio(3)		74.81			72.64			62.84			66.41			62.42

(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.


	For the Years Ended
	December 31,
(dollars in thousands, except per share data)	2023			2022
INCOME STATEMENTS
Interest income	$	156,492		$	123,209
Interest expense		59,512			15,380
Net interest income		96,980			107,829
Provision for loan losses		—			2,150
Net interest income after provision for loan losses		96,980			105,679
Noninterest income		22,513			23,485
Noninterest expense		82,354			79,907
Income before income taxes		37,139			49,257
Income tax provision		7,130			8,834
Net earnings	$	30,009		$	40,423
Net loss attributable to noncontrolling interest		28			24
Net earnings attributable to Guaranty Bancshares, Inc.	$	30,037		$	40,447

PER COMMON SHARE DATA
Earnings per common share, basic	$	2.57		$	3.38
Earnings per common share, diluted		2.56			3.34
Cash dividends per common share		0.92			0.88
Book value per common share - end of period		26.28			24.70
Tangible book value per common share - end of period(1)		23.37			21.85
Common shares outstanding - end of period(4)		11,540,644			11,941,672
Weighted-average common shares outstanding, basic		11,693,761			11,980,209
Weighted-average common shares outstanding, diluted		11,738,605			12,092,847

PERFORMANCE RATIOS
Return on average assets		0.92	%		1.24	%
Return on average equity		10.10			13.76
Net interest margin, fully taxable equivalent(2)		3.15			3.54
Efficiency ratio(3)		68.92			60.85

(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.


	As of
	2023												2022
(dollars in thousands)	December 31			September 30			June 30			March 31			December 31
LOAN PORTFOLIO COMPOSITION
Commercial and industrial	$	287,565		$	292,410		$	295,864		$	295,936		$	314,067
Real estate:
Construction and development		296,639			317,484			345,127			372,203			377,135
Commercial real estate		923,195			901,321			891,883			900,190			887,587
Farmland		186,295			188,614			187,105			190,802			185,817
1-4 family residential		514,603			504,002			496,340			499,944			493,061
Multi-family residential		44,292			42,720			44,385			44,760			45,147
Consumer		57,059			58,294			59,498			60,163			61,394
Agricultural		12,685			13,076			13,447			13,545			13,686
Overdrafts		243			328			252			270			282
Total loans(1)(2)	$	2,322,576		$	2,318,249		$	2,333,901		$	2,377,813		$	2,378,176

	Quarter Ended
	2023												2022
(dollars in thousands)	December 31			September 30			June 30			March 31			December 31
ALLOWANCE FOR CREDIT LOSSES
Balance at beginning of period	$	31,140		$	31,759		$	31,953		$	31,974		$	29,235
Loans charged-off		(242	)		(644	)		(224	)		(94	)		(103	)
Recoveries		22			25			30			73			42
Provision for credit loss expense		—			—			—			—			2,800
Balance at end of period	$	30,920		$	31,140		$	31,759		$	31,953		$	31,974

Allowance for credit losses / period-end loans		1.33	%		1.34	%		1.36	%		1.34	%		1.34	%
Allowance for credit losses / nonperforming loans		552.9			1,148.2			894.6			238.4			294.7
Net charge-offs / average loans (annualized)		0.04			0.11			0.03			0.00			0.01

NONPERFORMING ASSETS
Nonaccrual loans	$	5,592		$	2,712		$	3,550		$	13,405		$	10,848
Other real estate owned		—			—			—			38			38
Repossessed assets owned		234			250			—			—			—
Total nonperforming assets	$	5,826		$	2,962		$	3,550		$	13,443		$	10,886

Nonperforming assets as a percentage of:
Total loans(1)(2)		0.25	%		0.13	%		0.15	%		0.57	%		0.46	%
Total assets		0.18			0.09			0.11			0.40			0.32

(1) Excludes outstanding balances of loans held for sale of $976,000, $2.5 million, $795,000, $1.3 million, and $3.2 million as of December 31, September 30, June 30 and March 31, 2023, and December 31, 2022, respectively.
(2) Excludes deferred loan fees of $775,000, $946,000, $1.3 million, $1.6 million, and $2.0 million as of December 31, September 30, June 30 and March 31, 2023, and December 31, 2022, respectively.


	Quarter Ended
	2023									2022
(dollars in thousands)	December 31		September 30		June 30			March 31		December 31
NONINTEREST INCOME
Service charges	$	1,123	$	1,131	$	1,056		$	1,077	$	1,096
Net realized gain (loss) on securities transactions		—		—		(322	)		93		172
Net realized gain on sale of loans		196		218		473			314		310
Fiduciary and custodial income		624		637		630			638		642
Bank-owned life insurance income		249		267		211			214		209
Merchant and debit card fees		1,760		1,752		2,121			1,674		1,711
Loan processing fee income		116		128		142			134		150
Mortgage fee income		30		46		50			68		81
Other noninterest income		698		760		3,512			693		751
Total noninterest income	$	4,796	$	4,939	$	7,873		$	4,905	$	5,122

NONINTEREST EXPENSE
Employee compensation and benefits	$	12,715	$	11,944	$	11,939		$	12,264	$	12,364
Occupancy expenses		2,757		2,960		2,754			2,830		2,770
Legal and professional fees		954		902		985			583		779
Software and technology		1,740		1,490		1,531			1,396		1,525
Amortization		145		147		149			161		161
Director and committee fees		186		192		201			199		199
Advertising and promotions		352		288		269			267		488
ATM and debit card expense		763		803		739			599		740
Telecommunication expense		175		178		171			183		193
FDIC insurance assessment fees		321		363		522			301		359
Other noninterest expense		1,294		1,247		1,211			1,184		1,319
Total noninterest expense	$	21,402	$	20,514	$	20,471		$	19,967	$	20,897


	Quarter Ended December 31,
	2023								2022
(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)	$	2,329,227		$	35,573		6.06	%	$	2,305,688		$	30,189		5.19	%
Securities available for sale		187,119			1,540		3.27			202,829			1,478		2.89
Securities held to maturity		406,553			2,619		2.56			574,951			3,222		2.22
Nonmarketable equity securities		26,314			264		3.98			24,291			377		6.16
Interest-bearing deposits in other banks		56,207			800		5.65			49,422			454		3.64
Total interest-earning assets		3,005,420			40,796		5.39			3,157,181			35,720		4.49
Allowance for credit losses		(30,996	)							(29,634	)
Noninterest-earning assets		223,204								218,811
Total assets	$	3,197,628							$	3,346,358
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing deposits	$	1,788,863		$	14,311		3.17	%	$	1,627,442		$	4,433		1.08	%
Advances from FHLB and fed funds purchased		140,761			1,915		5.40			240,489			2,408		3.97
Line of credit		4,255			95		8.86			—			—		—
Subordinated debt		46,438			534		4.56			49,806			514		4.09
Securities sold under agreements to repurchase		23,860			128		2.13			7,634			7		0.36
Total interest-bearing liabilities		2,004,177			16,983		3.36			1,925,371			7,362		1.52
Noninterest-bearing liabilities:
Noninterest-bearing deposits		865,817								1,102,016
Accrued interest and other liabilities		33,496								26,500
Total noninterest-bearing liabilities		899,313								1,128,516
Equity		294,138								292,471
Total liabilities and equity	$	3,197,628							$	3,346,358
Net interest rate spread(2)							2.03	%							2.97	%
Net interest income				$	23,813							$	28,358
Net interest margin(3)							3.14	%							3.56	%
Net interest margin, fully taxable equivalent(4)							3.11	%							3.57	%

(1) Includes average outstanding balances of loans held for sale of $799,000 and $1.5 million for the quarter ended December 31, 2023 and 2022, 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%.


	Year Ended December 31,
	2023								2022
(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)	$	2,352,154		$	136,086		5.79	%	$	2,126,810		$	104,503		4.91	%
Securities available for sale		182,277			5,159		2.83			287,764			5,808		2.02
Securities held to maturity		449,097			11,210		2.50			518,213			10,789		2.08
Nonmarketable equity securities		27,371			1,288		4.71			18,791			1,246		6.63
Interest-bearing deposits in other banks		51,507			2,749		5.34			121,609			863		0.71
Total interest-earning assets		3,062,406			156,492		5.11			3,073,187			123,209		4.01
Allowance for credit losses		(31,601	)							(29,415	)
Noninterest-earning assets		220,230								216,812
Total assets	$	3,251,035							$	3,260,584
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing deposits	$	1,698,758		$	44,981		2.65	%	$	1,670,287		$	9,753		0.58	%
Advances from FHLB and fed funds purchased		226,214			11,626		5.14			132,764			3,855		2.90
Line of credit		4,168			363		8.71			—			34		—
Subordinated debt		47,873			2,143		4.48			46,977			1,722		3.67
Securities sold under agreements to repurchase		20,635			399		1.93			8,596			16		0.19
Total interest-bearing liabilities		1,997,648			59,512		2.98			1,858,624			15,380		0.83
Noninterest-bearing liabilities:
Noninterest-bearing deposits		924,945								1,082,513
Accrued interest and other liabilities		30,924								25,537
Total noninterest-bearing liabilities		955,869								1,108,050
Equity		297,518								293,910
Total liabilities and equity	$	3,251,035							$	3,260,584
Net interest rate spread(2)							2.13	%							3.18	%
Net interest income				$	96,980							$	107,829
Net interest margin(3)							3.17	%							3.51	%
Net interest margin, fully taxable equivalent(4)							3.15	%							3.54	%

(1) Includes average outstanding balances of loans held for sale of $1.2 million and $2.4 million for the years ended December 31, 2023 and 2022, 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.
(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, using a marginal tax rate of 21%.

NON-GAAP RECONCILING TABLES

Tangible Book Value per Common Share


	As of
	2023												2022
(dollars in thousands, except per share data)	December 31			September 30			June 30			March 31			December 31
Equity attributable to Guaranty Bancshares, Inc.	$	303,300		$	296,226		$	296,862		$	299,700		$	294,984
Adjustments:
Goodwill		(32,160	)		(32,160	)		(32,160	)		(32,160	)		(32,160	)
Core deposit intangible, net		(1,418	)		(1,524	)		(1,633	)		(1,746	)		(1,859	)
Total tangible common equity attributable to Guaranty Bancshares, Inc.	$	269,722		$	262,542		$	263,069		$	265,794		$	260,965
Common shares outstanding(1)		11,540,644			11,554,094			11,603,167			11,925,357			11,941,672
Book value per common share	$	26.28		$	25.64		$	25.58		$	25.13		$	24.70
Tangible book value per common share(1)		23.37			22.72			22.67			22.29			21.85

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

Net Unrealized Loss on Securities, Tax Effected, as % of Total Equity


(dollars in thousands)	December 31, 2023
Total equity(1)	$	303,846
Less: net unrealized loss on HTM securities, tax effected		(23,451	)
Total equity, including net unrealized loss on AFS and HTM securities	$	280,395

Net unrealized loss on AFS securities, tax effected		15,156
Net unrealized loss on HTM securities, tax effected		23,451
Net unrealized loss on AFS and HTM securities, tax effected	$	38,607

Net unrealized loss on securities as % of total equity(1)		12.7	%
Total equity before impact of unrealized losses	$	319,002
Net unrealized loss on securities as % of total equity before impact of unrealized losses		12.1	%

Total average assets	$	3,197,628
Total equity to average assets		9.5	%
Total equity, adjusted for tax effected net unrealized loss, to average assets		8.8	%

(1) Includes the net unrealized loss on AFS securities, tax effected, of $15,156.

Cost of Total Deposits


	Quarter Ended
(dollars in thousands)	December 31, 2023			September 30, 2023			December 31, 2022
Total average interest-bearing deposits	$	1,788,863		$	1,726,218		$	1,627,442
Adjustments:
Noninterest-bearing deposits		865,817			888,772			1,102,016
Total average deposits	$	2,654,680		$	2,614,990		$	2,729,458

Total deposit-related interest expense	$	14,311		$	13,069		$	4,433

Average cost of interest-bearing deposits		3.17	%		3.00	%		1.08	%
Average cost of total deposits		2.14			1.98			0.64

About Non-GAAP Financial Measures

Certain of the financial measures and ratios we present, including “tangible book value per share”, "net unrealized loss on securities, tax effected, as a percentage of total equity" and "cost of total deposits" 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.

Conference Call Information

The Company will hold a conference call to discuss fourth quarter 2023 financial results on Tuesday, January 16, 2024 at 10:00 am Central Time. The conference call will be hosted by Ty Abston, Chairman and CEO and Shalene Jacobson, EVP and 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 Time the day of the call and remain available through January 31, 2024 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 33 banking locations across 26 Texas communities located within the East Texas, Dallas/Fort Worth, Houston and Central Texas regions of the state. As of December 31, 2023, Guaranty Bancshares, Inc. had total assets of $3.2 billion, total loans of $2.3 billion and total deposits of $2.6 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. 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:

   

    Shalene Jacobson
Executive Vice President and Chief Financial Officer
Guaranty Bancshares, Inc.
(888) 572-9881

   

    investors@gnty.com

   

INVESTOR PRESENTATION NYSE: GNTY 4TH QUARTER 2024

SAFE HARBOR STATEMENT ABOUT GUARANTY BANCSHARES, INC. Guaranty Bancshares, Inc. is the parent company for Guaranty Bank & Trust, N.A. Guaranty Bank & Trust has 33 banking locations across 26 Texas communities located within the East Texas, Dallas/Fort Worth, Houston and Central Texas regions of the state. As of December 31, 2023, Guaranty Bancshares, Inc. had total assets of $3.2 billion, total loans of $2.3 billion and total deposits of $2.6 billion. Visit www.gnty.com for more information. NO OFFER OR SOLICITATION This communication does not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. NON-GAAP FINANCIAL MEASURES Guaranty reports its results in accordance with United States generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP performance measures used in managing its business may provide meaningful information about underlying trends in its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Guaranty’s reported results prepared in accordance with GAAP. Please see “Reconciliation of Non-GAAP Measures” at the end of this presentation for a reconciliation to the nearest GAAP financial measure.

SAFE HARBOR STATEMENT This presentation 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 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 presentation, 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.

QUARTERLY HIGHLIGHTS Ty Abston CEO and Chairman of the Board Shalene Jacobson EVP and Chief Financial Officer

Q4 2023 – FINANCIAL RESULTS EARNINGS, ROAA AND NIM BALANCE SHEET NON-INTEREST INCOME AND EXPENSE Total assets were $3.18 billion at Dec 31, 2023, compared to $3.35 billion at Dec 31, 2022 Total gross loans were $2.32 billion at Dec 31, 2023, compared to $2.38 billion at Dec 31, 2022 Gross loans increased $4.3 million (0.2%) in 4Q23 and decreased $55.6 million (2.4%) during 2023 Total deposits were $2.63 billion at Dec 31, 2023 compared to $2.68 billion at Dec 31, 2022 Total deposits decreased $25.0 million (0.9%) in 4Q23 and $47.9 million (1.8%) during 2023 Total equity was $303.8 million at Dec 31, 2023 compared to $295.6 million at Dec 31, 2022 Repurchased 24,800 GNTY shares in 4Q23 at a weighted average price of $27.76 per share Paid cash dividend of $0.23/share in each quarter of 2023, compared to $0.22 in each quarter in 2022 Noninterest income was fairly consistent with the prior quarter, a decrease of $143,000, or 2.9%, due primarily to lower gain on sale and fees related to mortgage loans Noninterest expense increased $888,000, or 4.3%, from 3Q23, due primarily to annual salary increases that occurred on Oct 1, 2023 and increases in software and technology costs Efficiency ratio of 74.81% for 4Q23 Net earnings of $5.9 million during the quarter and $30.0 million for the year Net earnings per basic share of $0.51 in 4Q23 and $2.57 for the year ROAA of 0.73% and ROAE of 7.93% in 4Q23 compared to 0.78% and 8.43%, respectively, in 3Q23 and 0.92% and 10.10%, respectively, for the year Net interest margin (FTE) was 3.11% in 4Q23, compared to 3.02% in 3Q23, and 3.15% for the year Loan yield was 6.06% in 4Q23, compared to 5.91% in 3Q23 and 5.79% for the year Cost of total deposits was 2.14% in 4Q23, compared to 1.98% in 3Q23, and 1.71% for the year

ACL No provision for credit losses in 2023, $2.8 million provision in 4Q22 No material changes in CECL methodology during 2023. Made minor adjustments to certain qualitative factors each quarter to incorporate relevant portfolio trends Allowance for credit losses (ACL) coverage is 1.33% at Dec 31, 2023 and 1.34% at Dec 31, 2022 LOAN PORTFOLIO & CREDIT QUALITY Gross loans increased $4.3 million, or 0.19%, in 4Q23 Weighted average yield on new loan originations in 4Q23 was 8.61%, compared to 8.14% in 3Q23 and 8.19% for the year Nonperforming assets to total assets were 0.18% as of Dec 31, 2023, 0.09% as of Sep 30, 2023 and 0.32% as of Dec 31, 2022 Net charge-offs were $220,000 in 4Q23, compared to $619,000 in 3Q23, and $1.1 million for the year Net charge-offs to average loans were 0.04% in 4Q23, compared to 0.11% in 3Q23 and 0.04% for the year Loan portfolio quality remains strong and we expect credit metrics to continue to benefit from good economic conditions in Texas CRE and real estate C&D represents 39.7% and 12.8% of our total loan portfolio, respectively. Office-related loans represent 4.6% of the total loan portfolio and have an average balance of $515,000 Non-accrual loans are $5.6 million as of Dec 31, 2023, an increase from $2.7 million at Sep 30, 2023. The increase consists of a $1.5 million loan that should be paid off within the month and a $1.1 million single family residence with strong LTV. We expect minimal losses, if any, on either loan. Substandard loans at Dec 30, 2023 are $24.6 million, down from $28.1 million at Sep 30, 2023. A $3.5 million substandard loan was paid off during 4Q23. All others are in process of resolution with minimal losses expected. Q4 2023 – CREDIT & ACL INFO

DEPOSITS Granular deposits: 87,664 total deposit accounts with an average balance of $30,038 Uninsured deposits, excluding public funds and GNTY-owned accounts, are 25.07% of total deposits Total deposits decreased by $25.0 million in 4Q23, which consisted primarily of a decrease in DDA deposits of $48.6 million, a decrease in time deposits of $8.1 million and offset by an increase in savings/MMDA of $33.5 million. Total deposits decreased $47.9 million during 2023 Loan-to-deposit ratio of 88.2% as of Dec 31, 2023, 87.2% as of Sep 30, 2023 and 88.7% as of Dec 31, 2022 Noninterest-bearing deposits represent 32.4% of total deposits as of Dec 31, 2023, down from 39.2% at Dec 31, 2022 Q4 2023 – Deposits, Liquidity & Capital LIQUIDITY & INVESTMENTS Liquidity ratio* was 12.2% at Dec 31, 2023 FHLB advances decreased $35.0 million during 4Q23 and decreased $150.0 million during 2023 Total available contingent liquidity from all sources is $1.2 billion at Dec 31, 2023 Total net unrealized loss on investment securities is $48.9 million, comprised of $19.2 million AFS and $29.7 million HTM. Net of tax, total unrealized loss is $38.6 million, which is 12.1% of total equity before losses** Capital ratios remain strong. Total equity to average assets as of Dec 31, 2023 is 9.5% If we had to recognize our entire unrealized losses on both AFS and HTM securities, the ratio would be 8.8%** During 4Q23, we repurchased 24,800 shares of Company stock at an average price of $27.76 per share. During the year ended Dec 31, 2023, we repurchased 434,798 shares, or 3.7% of average shares outstanding during the year, at an average price of $25.82 per share CAPITAL *Calculated as cash and cash equivalents and unpledged securities divided by total liabilities. **Non-GAAP financial metrics. Calculations of these metrics and reconciliations to GAAP are included in the Reconciliation of Non-GAAP Financial Measures pages at the end of this presentation.

Q & A

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Net Unrealized Loss on Securities, Tax Effected, as % of Total Equity (dollars in thousands) December 31, 2023 Total equity(1) $ 303,846 Less: net unrealized loss on HTM securities, tax effected (23,451) Total equity, including net unrealized loss on AFS and HTM securities $ 280,395 Net unrealized loss on AFS securities, tax effected 15,156 Net unrealized loss on HTM securities, tax effected 23,451 Net unrealized loss on AFS and HTM securities, tax effected $ 38,607 Net unrealized loss on securities as % of total equity(1) 12.7% Total equity before impact of unrealized losses $ 319,002 Net unrealized loss on securities as % of total equity before impact of unrealized losses 12.1% Total average assets $ 3,197,628 Total equity to average assets 9.5% Total equity, adjusted for tax effected net unrealized loss, to average assets 8.8% (1) Includes the net unrealized loss on AFS securities, tax effected, of $15,156.

Document And Entity Information	Jan. 16, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 16, 2024
Entity Registrant Name	GUARANTY BANCSHARES, INC.
Entity Central Index Key	0001058867
Entity Emerging Growth Company	false
Securities Act 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
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	GNTY
Security Exchange Name	NYSE