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Mar 31, 2020
Guaranty Bancshares Q1 2020 Earnings Report
Reported financial results for the fiscal quarter ended March 31, 2020.
Key Takeaways
Guaranty Bancshares, Inc. reported a solid first quarter in 2020 with net income available to common shareholders of $6.3 million, or $0.55 per basic share. The company is focusing on supporting employees and customers impacted by COVID-19, participating in the Paycheck Protection Program, and contributing to charities.
Net income available to common shareholders was $6.3 million, or $0.55 per basic share.
Return on average assets and average equity were 1.09% and 9.94%, respectively.
Net interest income, before the provision for loan losses, increased by 8.2% to $20.6 million.
The bank adopted the Current Expected Credit Losses (CECL) standard on January 1, 2020, resulting in an allowance increase of $4.5 million.
Forward Guidance
Management refrained from providing specific forward guidance, but highlighted the uncertainty around the economic impacts of COVID-19.
Positive Outlook
- Strong asset quality and capital levels.
- Strong liquidity sources.
- Diversified borrowers.
- Company built on a solid foundation.
- Participating in the Paycheck Protection Program.
Challenges Ahead
- Economic impacts of COVID-19 are still very much unknown.
- Additional reserves added are primarily qualitative in nature.
- Nonperforming assets as a percentage of total loans increased.
- Hospitality-focused properties heavily impacted by the COVID-19 crisis.
- Downgraded additional loans in industries affected by this crisis to appropriate risk ratings.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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