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EX - 99.1 2 gnty - ex991_6.htm EX - 99.1 Exhibit 99.1 Press Release For Immediate Release Guaranty Bancshares , Inc. Reports First Quarter 2021 Financial Results Addison , Texas - April 19 , 2021 / Business Wire / - Guaranty Bancshares , Inc. ( NASDAQ : GNTY ) , the parent company of Guaranty Bank & Trust , N.A. , today reported financial results for the fiscal quarter ended March 31 , 2021. The Company's net income available to common shareholders was $ 11.0 million , or $ 0.95 per basic share , for the quarter ended March 31 , 2021 , compared to $ 9.9 million , or $ 0.90 per basic share , for the quarter ended December 31 , 2020 and $ 6.3 million , or $ 0.55 per basic share , for the quarter ended March 31 , 2020 . Return on average assets and average equity for the first quarter of 2021 were 1.60 % and 16.01 % , respectively , compared to 1.48 % and 14.53 % , respectively , for the fourth quarter of 2020 and 1.09 % and 9.94 % , respectively , for the first quarter of 2020. The increase in earnings during the first quarter of 2021 , compared to the fourth quarter of 2020 , was partly due to the forgiveness and amortization of Paycheck Protection Program - round one ( " PPP1 " ) loans and recognition of associated loan origination fees for both PPP1 and round two ( " PPP2 " ) loans , decreases in interest expense relative to interest income , decreases in non - interest expense resulting from PPP origination costs and lower legal and professional expenses . Net core earnings * , excluding provisions for credit losses , income taxes and PPP1 / PPP2 net origination income , as well as our core net interest margin , adjusted to exclude the effects of PPP1 / PPP2 loans , are described further in tables below . " We are very pleased with our operating and financial results for the first quarter of 2021. The Texas economy appears to be rebounding nicely from many of the prior year's concerns resulting from COVID - 19 and we're glad to see people in our communities receiving vaccinations and continuing to work at stopping the spread of the virus . All of our lobbies are back open at normal business hours , and many of our employees have returned to normal working conditions with the remainder expected to during the second quarter . Our borrowers have generally weathered the downturn well over the last year and we're pleased that only a handful of credits remain in an interest - only deferral period . We anticipate that these borrowers will return to their normal contractual payment schedules during the second quarter of 2021. As our first quarter results indicate , we've sustained our net interest margin at good levels compared to industry trends and continue to have excellent asset quality and strong net core earnings . Additionally , during the first quarter of 2021 we issued a 10 % stock dividend and declared a cash dividend of $ 0.20 / share , which is an increase over last year on a split - adjusted basis of over 12 % . We continue to view our multi - decade history of providing a growing dividend to our shareholders as a big part of the value proposition to our shareholder's total return , " commented Ty Abston , the Company's Chairman and Chief Executive Officer . QUARTERLY HIGHLIGHTS Strong Net Earnings . Net earnings for the quarter were $ 11.0 million , up from $ 9.9 million for the immediately prior quarter and up from $ 6.3 million for the same quarter of 2020. Net core earnings , which exclude provisions for credit losses and income tax , net PPP income , and interest on PPP - related borrowings , were $ 9.8 million for the first quarter , compared to $ 9.6 million for the fourth quarter of 2021 , and $ 9.1 million during the first quarter of 2020 . Solid Net Interest Margin . The fully tax - equivalent ( “ FTE ” ) net interest margin was 3.85 % for the first quarter of 2021 , compared to 3.85 % in the preceding quarter and 3.87 % in the first quarter of 2020. Net interest income increased $ 539,000 , or 2.3 % , from $ 24.0 million in the fourth quarter of 2020 to $ 24.5 million in the first quarter of 2021. Interest expense decreased $ 279,000 , or 12.1 % , from $ 2.3 million in the fourth quarter of 2020 to $ 2.0 million in first quarter of 2021. The Bank continues to decrease cost of funds as higher rate CDs mature and to reduce interest rates on non - maturing deposits as market conditions allow . In addition , 63.0 % of the loan portfolio , or $ 1.2 billion , has interest rate floors and 55 % of those loans are currently at their floors . The weighted average interest rate of loans currently at their floor is 4.43 % . Steady Credit Quality and Reduced Deferrals . Non - performing assets as a percentage of total loans were 0.19 % at March 31 , 2021 , compared to 0.70 % at December 31 , 2020 and 1.00 % at March 31 , 2020. Net charge - offs to average loans ( annualized ) were 0.18 % at March 31 , 2021 , compared to 0.03 % at December 31 , 2020 , and 0.05 % at March 31 , 2020. The decrease in non- performing assets and the increase in charge - offs during the quarter resulted primarily from the resolution of three problem loans , made to two borrowers , with outstanding combined book balances of $ 8.7 million at December 31 , 2020 , that were acquired during the Westbound acquisition and which were fully reserved prior to the onset of COVID - 19 . The level of COVID - related loan deferrals provided by the Bank has declined significantly from the levels in the first and second quarters of 2020. Information about subsequent deferrals made on those loans described further in the Financial Condition section below . Paycheck Protection Program . The Bank continued participation in the PPP2 program during the first quarter and as of March 31 , 2021 , has issued $ 84.5 million of PPP2 loans to 932 borrowers , which resulted in $ 1.8 million in net origination fees recognized by the Bank . The Bank also recognized $ 1.4 million in deferred origination fees during the quarter from PPP1 loans through both amortization and forgiveness of the related PPP1 loans . As of March 31 , 2021 , there are 530 PPP1 loans with outstanding balances of $ 73.7 million remaining in our loan portfolio , a reduction of 64.8 % † Non - GAAP financial metric . Calculations of this metric and reconciliations to GAAP are included in the schedules accompanying this release .