Loading...
•
Jun 30, 2022
Guaranty Bancshares Q2 2022 Earnings Report
Reported strong financial results driven by improved net interest margin and loan growth, but offset by lower non-interest income and higher non-interest expense.
Key Takeaways
Guaranty Bancshares, Inc. reported a net income available to common shareholders of $10.8 million, or $0.90 per basic share, for the quarter ended June 30, 2022. The increase in earnings was primarily due to improved net interest margin, but offset by lower non-interest income and higher non-interest expense.
Strong organic loan growth, increasing $124.3 million, or 6.2%, during the quarter.
Net core earnings were $12.8 million for the second quarter, compared to $10.9 million for the first quarter of 2022, and $9.8 million during the second quarter of 2021.
Non-performing assets as a percentage of total assets were 0.30% at June 30, 2022.
Net interest margin increased from 3.37% for the first quarter of 2022 to 3.61% for the second quarter of 2022, an increase of 24 basis points.
Revenue by Segment
Forward Guidance
The Bank is slightly asset-sensitive and should see benefits from expected rate increases by the Federal Reserve. Total rate increases of 175 bps between June 30 and December 31 would result in repricing of approximately $453.6 million, or 33.0%, of our total floating and adjustable rate loans by December 31, 2022.
Positive Outlook
- The Bank is slightly asset-sensitive and should see benefits from expected rate increases by the Federal Reserve.
- A rate increase of 75 bps at the July FOMC meeting would result in the repricing of approximately $322.7 million, or 23.5%, of our floating and variable rate loans in July.
- Total rate increases of 175 bps between June 30 and December 31 would result in repricing of approximately $453.6 million, or 33.0%, of our total floating and adjustable rate loans by December 31, 2022.
- 39.8% of our deposits are noninterest-bearing
- Total cost of funds on total deposits during the second quarter was 0.23%.
Challenges Ahead
- Loan growth will likely slow during the second half of the year as rates continue to rise and fears of an economic downturn continue to develop.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...