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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.
Guaranty Bancshares
Guaranty Bancshares
Guaranty Bancshares Revenue by Segment
Revenue by Segment
Commercial & Industrial Revenue
CapyFin.comConstruction & Development Revenue
CapyFin.comCommercial Real Estate Revenue
CapyFin.comFarmland Revenue
CapyFin.com1-4 Family Residential Revenue
CapyFin.comMulti-Family Residential Revenue
CapyFin.comConsumer Revenue
CapyFin.comAgricultural Revenue
CapyFin.comOverdrafts Revenue
CapyFin.com 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.
- Inflation pressure and wage increases from a tight labor market have caused increases in our non-interest expense
- Unrealized losses in accumulated other comprehensive income during the quarter resulted in a decrease in the tangible common equity ratio from 8.16% as of March 31, 2022 to 7.64% as of June 30, 2022.
- Total deposits decreased by $17.8 million, or 0.6%, to $2.78 billion at June 30, 2022, compared to $2.80 billion at March 31, 2022
- The decrease in deposits during the current quarter resulted primarily from a $38.4 million decrease in public funds accounts.