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Jun 30, 2021
Guaranty Bancshares Q2 2021 Earnings Report
Guaranty Bancshares' financial performance was solid in the second quarter of 2021, with net income of $10.4 million and consistent core earnings, driven by rebounding Texas economy and strong borrower resilience.
Key Takeaways
Guaranty Bancshares reported a net income available to common shareholders of $10.4 million, or $0.87 per basic share, for the quarter ended June 30, 2021. The company experienced a decrease in earnings compared to the previous quarter, primarily due to lower origination fee income from PPP loans, which was partially offset by a reverse provision for credit losses of $1.0 million. The company's non-performing assets as a percentage of total assets remained low at 0.13%.
Net earnings remained consistent for the past four quarters.
Net core earnings were $9.4 million for the second quarter.
Net interest margin, net of PPP effects, was 3.38% for the second quarter of 2021.
Non-performing assets as a percentage of total assets were 0.13% at June 30, 2021.
Forward Guidance
Guaranty Bancshares is confident in its ability to defend its net interest margin and is encouraged with the size and strength of its loan pipeline as it enters the second half of 2021.
Positive Outlook
- Texas economy is rebounding strongly from COVID effects.
- Loan pipeline is refilling with increased demand across all loan types and regions.
- Borrowers have shown strong resilience during this rebound.
- Many businesses are having record years so far during 2021.
- Non-performing assets as a percentage of total assets are very low at only 0.13%.
Challenges Ahead
- Experienced some headwinds in net interest margin.
- Seeing elevated loan pay downs.
- Economic effects of the pandemic could continue beyond 2021.
- Credit impact of the pandemic to be largely understood and accounted for by the end of 2021.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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