Guaranty Bancshares, Inc. Reports Fourth Quarter and Year-End 2024 Financial Results

ADDISON, Texas--(BUSINESS WIRE)--Guaranty Bancshares, Inc. (NYSE: GNTY) (the "Company"), the parent company of Guaranty Bank & Trust, N.A. (the "Bank"), today reported financial results for the fiscal quarter and year ended December 31, 2024. The Company's net income available to common shareholders was $10.0 million, or $0.88 per basic share, for the quarter ended December 31, 2024, compared to $7.4 million, or $0.65 per basic share, for the quarter ended September 30, 2024 and $5.9 million, or $0.51 per basic share, for the quarter ended December 31, 2023. Return on average assets and average equity for the fourth quarter of 2024 were 1.27% and 12.68%, respectively, compared to 0.96% and 9.58%, respectively, for the third quarter of 2024 and 0.73% and 7.93%, respectively, for the fourth quarter of 2023. The increase in earnings during the fourth quarter of 2024 compared to the fourth quarter of 2023 was primarily due to a $2.4 million, or 10.1%, increase in net interest income, a $930,000, or 19.4%, increase in noninterest income, and a decrease in noninterest expense of $1.5 million, or 7.1%, compared to the prior year quarter. The increase in earnings as compared to the third quarter of 2024 was primarily driven by a $2.0 million, or 8.4%, increase in net interest income. "We are very satisfied with our fourth quarter and year-end 2024 financial results. The decreases in Federal interest rates coupled with continued repricing of our loan and securities portfolio at higher yields allowed our net interest margin to grow to 3.54% for the fourth quarter of 2024 and 3.32% for the year ended December 31, 2024. We strategically shrunk our balance sheet during 2024 to build liquidity and capital, and to reduce credit risk, while maintaining our core deposits. As a result, we ended 2024 with strong key performance metrics and very low non-performing assets. We believe we are well positioned for loan growth and continued favorable results for our shareholders during 2025," said Ty Abston, the Company's Chairman and Chief Executive Officer. QUARTERLY AND ANNUAL HIGHLIGHTS Increasing NIM and Stable Earnings. Net interest margin, on a fully taxable equivalent basis, continued to improve in the fourth quarter, increasing to 3.54%, compared to 3.33% in the third quarter and 3.11% in the prior year quarter. Net interest margin improved to 3.32% for the year compared to 3.15% in 2023. With our net earnings of $10.0 million in the fourth quarter, total net income for 2024 was $31.5 million, compared to $30.0 million in 2023, an increase of 5.0%. The improvements to net earnings resulted primarily from the decrease in interest bearing liability costs, while earning assets have repriced upward. Solid Balance Sheet, Capital and Liquidity. During the past year, we have strategically shrunk our balance sheet primarily by paying off debt and allowing transactional/non-relationship loans to pay off. We believe this strategy positions us to be on the offense when strong opportunities for growth or M&A are presented. Our capital and liquidity ratios, as well as contingent liquidity sources, remain very healthy. Our liquidity ratio, calculated as cash and cash equivalents and unpledged investments divided by total liabilities, was 16.5% as of December 31, 2024, compared to 12.2% as of December 31, 2023. Our total available contingent liquidity, net of current outstanding borrowings, was $1.3 billion, consisting of FHLB, FRB and correspondent bank fed funds and revolving lines of credit. Finally, our total equity to average quarterly assets as of December 31, 2024 was 10.2%. If we had to recognize our entire net unrealized losses on both AFS and HTM securities, our total equity to average assets ratio would be 9.4%†, which we believe represents a strong capital level under regulatory requirements. Excellent Asset Quality. Overall credit quality remains excellent and the expected losses on deteriorated credits are low due to the Bank's equity position and/or strong guarantor support. Nonperforming assets as a percentage of total assets were 0.16% at December 31, 2024, compared to 0.66% at September 30, 2024 and 0.18% at December 31, 2023. Net charge-offs (annualized) to average loans were 0.00% for the quarter ended December 31, 2024, compared to 0.04% for the quarter ended September 30, 2024, and 0.04% for the quarter ended December 31, 2023. There was a reversal of the provision for credit losses of $250,000 during the fourth quarter, in addition to the $1.95 million reversal of provision for credit losses during the first three quarters of the year. Changes to historical and qualitative factors have been minimal during 2024, therefore the decrease in the allowance for credit losses was due primarily to the decreases in outstanding loan balances of $191.4 million, or 8.2%, since January 1, 2024. We continue to work with a relatively small number of stressed borrowers, which is reflected in the low $3.7 million and $2.4 million balances of nonaccrual loans and loans that are risk-rated Substandard, respectively, as of December 31, 2024. Nonperforming assets consist of both nonaccrual loans and other real estate owned (ORE). Nonaccrual loans represented 0.17% of total outstanding loan balances as of December 31, 2024 and consisted primarily of smaller dollar consumer and small business loans. ORE at year end consisted of one real estate property, which we expect to resolve and sell in the first quarter of 2025 with minimal, if any, losses. Nonaccrual loans represented 0.24% of total outstanding loan balances as of both September 30, 2024 and December 31, 2023. Granular and Consistent Core Deposit Base. As of December 31, 2024, we have 90,215 total deposit accounts with an average account balance of $29,842. We have a historically reliable core deposit base, with strong and trusted banking relationships. Total deposits increased by $23.3 million during the fourth quarter. Savings and money market account balances increased $29.1 million and DDA account balances increased $3.4 million, while time deposit balances decreased $9.2 million during the fourth quarter of 2024. Excluding public funds and Bank-owned accounts, our uninsured deposits as of December 31, 2024 were 26.3% of total deposits. Interest rates paid on deposits during the quarter decreased as a result of lower federal funds rates. Our cost of interest-bearing deposits decreased 26 basis point during the quarter from 3.33% in the prior quarter to 3.07%. Our cost of total deposits for the fourth quarter of 2024 decreased 20 basis points from 2.31% in the prior quarter to 2.11%†. Noninterest-bearing deposits represent 31.1% of total deposits as of December 31, 2024. † Non-GAAP financial metric. Calculations of this metric and reconciliations to GAAP are included in the schedules accompanying this release. RESULTS OF OPERATIONS Net interest income, before the reversal of the provision for credit losses, for the fourth quarter of 2024 and 2023 was $26.2 million and $23.8 million, respectively, an increase of $2.4 million, or 10.1%. The increase in net interest income resulted from an increase in interest income of $466,000, or 1.1%, and a decrease in interest expense of $1.9 million, or 11.4%, compared to the prior year quarter. The increase in interest income resulted primarily from a $1.2 million, or 29.9%, increase in interest income on securities and a $605,000, or 75.6%, increase in interest income on federal funds sold, and was offset somewhat by a decrease in loan interest income of $1.3 million, or 3.5%. The decrease in interest expense resulted primarily from a $1.8 million decrease in interest paid on FHLB borrowings. Our noninterest-bearing deposits to total deposits were 31.1% and 32.4% as of December 31, 2024 and 2023, respectively. Net interest margin, on a fully taxable equivalent (FTE) basis, for the fourth quarter of 2024 and 2023 was 3.54% and 3.11%, respectively. The increase of 43 basis points was primarily due to a 21 basis point increase in interest-earning asset yields and a decrease of 27 basis points in the cost of interest-bearing liabilities from the prior year quarter. The increase in yield on interest-earning assets was primarily due to increases in loan portfolio yield from 6.06% to 6.42%, or 36 basis points, as well as a 54 basis point increase in yield on AFS securities during the period. The decrease in the cost of interest-bearing liabilities was due primarily to a decrease in the cost of interest-bearing deposits from 3.17% to 3.07%, a change of 10 basis points, along with a decrease in the average balance of advances from the FHLB and fed funds purchased since December 31, 2023. Net interest income, before the reversal of the provision for credit losses, increased $2.0 million, or 8.4%, from $24.2 million in the third quarter of 2024 to $26.2 million for the fourth quarter of 2024. The increase in net interest income resulted primarily from an increase in interest income of $829,000, or 2.1%, combined with a decrease in interest expense of $1.2 million, or 7.4%, compared to the prior quarter. Net interest margin, on an FTE basis, increased from 3.33% for the third quarter of 2024 to 3.54% for the fourth quarter of 2024, an increase of 21 basis points. The increase in net interest margin, on an FTE basis, was primarily due to a 26 basis point decrease in rates paid on interest-bearing deposits in the fourth quarter of 2024 compared to the prior quarter. We recorded a reversal of the provision for credit losses of $250,000 during the fourth quarter of 2024, for a total reversal of provision for credit losses in 2024 of $2.2 million. The reversal of provision for credit losses resulted from a decline in gross loan balances of $5.4 million during the fourth quarter and of $191.4 million for the year ended December 31, 2024, while overall credit quality trends and economic forecast assumptions remained relatively stable during the year. As of both December 31, 2024 and 2023, our allowance for credit losses as a percentage of total loans was 1.33%. Noninterest income increased $930,000, or 19.4%, for the fourth quarter of 2024 to $5.7 million, compared to $4.8 million for the fourth quarter of 2023. The increase from the same quarter in 2023 was primarily due to higher other noninterest income, resulting partially from a gain of $467,000 on the sale of the commercial ORE property in Austin, Texas, for which a valuation reserve of $900,000 had been recorded in the second quarter of 2024. Other noninterest income also increased due to rental income received during the fourth quarter from the ORE property sold during the fourth quarter and from our investment in an apartment/commercial building in Bryan, Texas which was not present in the prior year quarter. Noninterest income for the fourth quarter of 2024 increased by $572,000, or 11.1%, from $5.2 million in the third quarter of 2024. The increase was primarily due to an increase in other noninterest income of $507,000, or 52.0%, resulting from the gain on the sale of the above mentioned ORE property during the fourth quarter of 2024. Noninterest expense decreased $1.5 million, or 7.1%, during the fourth quarter of 2024 to $19.9 million, compared to $21.4 million for the fourth quarter of 2023. The decrease in noninterest expense during the fourth quarter of 2024 was driven primarily by a $1.7 million, or 13.1%, decrease in employee compensation and benefits and a $238,000, or 24.9%, decrease in legal and professional fees compared to the fourth quarter of 2023. These decreases were partially offset by a $366,000, or 13.3%, increase in occupancy expenses in the fourth quarter of 2024 compared to the same period in 2023. The decrease in employee compensation expense from the prior quarter is due to primarily to lower officer salaries, healthcare and bonus costs in the current year quarter. Legal expense decreased due to fewer loan and other items in the normal course of business, while the occupancy expense increased primarily due to depreciation, property taxes and a new lease for our location in Georgetown, Texas. Noninterest expense decreased $798,000, or 3.9%, during the fourth quarter of 2024, from $20.7 million for the quarter ended September 30, 2024. The decrease resulted primarily from a $538,000, or 4.6%, decrease in employee compensation and benefits due to lower healthcare and salary expenses, as well as a $371,000, or 21.3%, decrease in other noninterest expense. This decrease was due to $360,000 in additional ORE-related holding costs incurred during the third quarter that were not present in the fourth quarter of 2024. The Company’s efficiency ratio for the fourth quarter of 2024 was 62.23%, compared to 74.81% for the prior year quarter and 70.47% for the third quarter of 2024. FINANCIAL CONDITION Consolidated assets for the Company totaled $3.12 billion at December 31, 2024, compared to $3.10 billion at September 30, 2024 and $3.18 billion at December 31, 2023. Gross loans decreased by $5.4 million, or 0.3%, during the quarter resulting in a gross loan balance of $2.13 billion at December 31, 2024, compared to $2.14 billion at September 30, 2024. The decline in loans resulted primarily from tighter underwriting and from lower demand from potential borrowers. Gross loans decreased $191.4 million, or 8.2%, from $2.32 billion at December 31, 2023. The decrease in gross loans during the year resulted from tightened credit underwriting standards and loan terms, strategic non-renewal decisions and fewer borrower requests in response to higher interest rates and project costs. Total deposits increased by $23.3 million, or 0.9%, to $2.69 billion at December 31, 2024, compared to $2.67 billion at September 30, 2024, and increased $58.9 million, or 2.2%, from $2.63 billion at December 31, 2023. The increase in deposits during the fourth quarter of 2024 compared to the third quarter of 2024 was the result of an increase in interest-bearing deposits of $25.4 million, partially offset by a decrease in noninterest-bearing deposits of $2.1 million. The increase in deposits during the year resulted primarily from an increase in interest-bearing deposits of $74.4 million, offset by a decrease in noninterest-bearing deposits of $15.5 million. Nonperforming assets as a percentage of total loans were 0.23% at December 31, 2024, compared to 0.96% at September 30, 2024 and 0.25% at December 31, 2023. Nonperforming assets as a percentage of total assets were 0.16% at December 31, 2024, compared to 0.66% at September 30, 2024, and 0.18% at December 31, 2023. The Bank's nonperforming assets consist primarily of ORE and nonaccrual loans. The decrease in nonperforming assets compared to the prior quarter was primarily due to the resolution and sale of an ORE property in Austin, Texas. There is one remaining single family ORE property with a book balance of $1.2 million which is expected to be fully resolved in the first quarter of 2025, with minimal, if any, expected losses. Total equity was $319.1 million at December 31, 2024, compared to $319.3 million at September 30, 2024 and $303.8 million at December 31, 2023. The decrease in total equity compared to the prior quarter resulted primarily from an increase in other comprehensive loss due to unrealized losses on investment securities of $8.1 million and $2.7 million of dividends paid, which was offset by net income of $10.0 million. The increase in total equity from the prior year was primarily due to net earnings of $31.5 million and was partially offset by $11.0 million in dividends paid, $6.4 million in treasury stock repurchases and $1.8 million in other comprehensive loss during 2024. As of 2024 2023 (dollars in thousands) December 31 September 30 June 30 March 31 December 31 ASSETS Cash and due from banks $ 47,417 $ 50,623 $ 45,016 $ 43,872 $ 47,744 Federal funds sold 94,750 108,350 40,475 24,300 36,575 Interest-bearing deposits 3,797 3,973 4,721 4,921 5,205 Total cash and cash equivalents 145,964 162,946 90,212 73,093 89,524 Securities available for sale 340,304 277,567 242,662 228,787 196,195 Securities held to maturity 334,732 341,911 347,992 363,963 404,208 Loans held for sale 143 770 871 874 976 Loans, net 2,102,565 2,107,597 2,185,247 2,234,012 2,290,881 Accrued interest receivable 12,016 10,927 12,397 11,747 13,143 Premises and equipment, net 56,010 56,964 57,475 56,921 57,018 Other real estate owned 1,184 15,184 15,184 14,900 — Cash surrender value of life insurance 42,883 42,623 42,369 42,119 42,348 Core deposit intangible, net 994 1,100 1,206 1,312 1,418 Goodwill 32,160 32,160 32,160 32,160 32,160 Other assets 46,599 47,356 53,842 67,550 56,920 Total assets $ 3,115,554 $ 3,097,105 $ 3,081,617 $ 3,127,438 $ 3,184,791 LIABILITIES AND EQUITY Deposits Noninterest-bearing $ 837,432 $ 839,567 $ 820,430 $ 828,861 $ 852,957 Interest-bearing 1,854,735 1,829,347 1,805,732 1,798,983 1,780,289 Total deposits 2,692,167 2,668,914 2,626,162 2,627,844 2,633,246 Securities sold under agreements to repurchase 31,075 31,164 25,173 39,058 25,172 Accrued interest and other liabilities 31,320 33,849 32,860 33,807 32,242 Line of credit — — — — 4,500 Federal Home Loan Bank advances — — 45,000 75,000 140,000 Subordinated debentures 41,918 43,885 43,852 45,819 45,785 Total liabilities 2,796,480 2,777,812 2,773,047 2,821,528 2,880,945 Equity attributable to Guaranty Bancshares, Inc. 318,498 318,784 308,043 305,371 303,300 Noncontrolling interest 576 509 527 539 546 Total equity 319,074 319,293 308,570 305,910 303,846 Total liabilities and equity $ 3,115,554 $ 3,097,105 $ 3,081,617 $ 3,127,438 $ 3,184,791 Quarter Ended 2024 2023 (dollars in thousands, except per share data) December 31 September 30 June 30 March 31 December 31 STATEMENTS OF EARNINGS Interest income $ 41,262 $ 40,433 $ 40,713 $ 40,752 $ 40,796 Interest expense 15,041 16,242 16,833 17,165 16,983 Net interest income 26,221 24,191 23,880 23,587 23,813 Reversal of provision for credit losses (250 ) (500 ) (1,200 ) (250 ) — Net interest income after reversal of provision for credit losses 26,471 24,691 25,080 23,837 23,813 Noninterest income 5,726 5,154 4,599 5,258 4,796 Noninterest expense 19,880 20,678 20,602 20,692 21,402 Income before income taxes 12,317 9,167 9,077 8,403 7,207 Income tax provision 2,309 1,788 1,654 1,722 1,341 Net earnings $ 10,008 $ 7,379 $ 7,423 $ 6,681 $ 5,866 Net loss attributable to noncontrolling interest 9 18 12 7 12 Net earnings attributable to Guaranty Bancshares, Inc. $ 10,017 $ 7,397 $ 7,435 $ 6,688 $ 5,878 PER COMMON SHARE DATA Earnings per common share, basic $ 0.88 $ 0.65 $ 0.65 $ 0.58 $ 0.51 Earnings per common share, diluted 0.87 0.65 0.65 0.58 0.51 Cash dividends per common share 0.24 0.24 0.24 0.24 0.23 Book value per common share - end of quarter 27.86 27.94 26.98 26.47 26.28 Tangible book value per common share - end of quarter(1) 24.96 25.03 24.06 23.57 23.37 Common shares outstanding - end of quarter(2) 11,431,568 11,408,908 11,417,270 11,534,960 11,540,644 Weighted-average common shares outstanding, basic 11,422,063 11,383,027 11,483,091 11,539,167 11,536,878 Weighted-average common shares outstanding, diluted 11,490,834 11,443,324 11,525,504 11,598,239 11,589,165 PERFORMANCE RATIOS Return on average assets (annualized) 1.27 % 0.96 % 0.95 % 0.85 % 0.73 % Return on average equity (annualized) 12.68 9.58 9.91 8.93 7.93 Net interest margin, fully taxable equivalent (annualized)(3) 3.54 3.33 3.26 3.16 3.11 Efficiency ratio(4) 62.23 70.47 72.34 71.74 74.81 (1) See Non-GAAP Reconciling Tables. (2) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options. (3) Net interest margin on a fully taxable equivalent basis is equal to net interest income adjusted for nontaxable income divided by average interest-earning assets, using a marginal tax rate of 21%. (4) The efficiency ratio was calculated by dividing total noninterest expense by net interest income plus noninterest income, excluding securities gains or losses. Taxes are not part of this calculation. For the Years Ended December 31, (dollars in thousands, except per share data) 2024 2023 STATEMENTS OF EARNINGS Interest income $ 163,160 $ 156,492 Interest expense 65,281 59,512 Net interest income 97,879 96,980 Reversal of provision for credit losses (2,200 ) — Net interest income after reversal of provision for credit losses 100,079 96,980 Noninterest income 20,737 22,513 Noninterest expense 81,852 82,354 Income before income taxes 38,964 37,139 Income tax provision 7,473 7,130 Net earnings $ 31,491 $ 30,009 Net loss attributable to noncontrolling interest 46 28 Net earnings attributable to Guaranty Bancshares, Inc. $ 31,537 $ 30,037 PER COMMON SHARE DATA Earnings per common share, basic $ 2.75 $ 2.57 Earnings per common share, diluted 2.74 2.56 Cash dividends per common share 0.96 0.92 Book value per common share - end of period 27.86 26.28 Tangible book value per common share - end of period(1) 24.96 23.37 Common shares outstanding - end of period(2) 11,431,568 11,540,644 Weighted-average common shares outstanding, basic 11,456,540 11,693,761 Weighted-average common shares outstanding, diluted 11,502,683 11,738,605 PERFORMANCE RATIOS Return on average assets 1.01 % 0.92 % Return on average equity 10.30 10.10 Net interest margin, fully taxable equivalent(3) 3.32 3.15 Efficiency ratio(4) 69.01 68.92 (1) See Non-GAAP Reconciling Tables. (2) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options. (3) Net interest margin on a fully taxable equivalent basis is equal to net interest income adjusted for nontaxable income divided by average interest-earning assets, annualized, using a marginal tax rate of 21%. (4) The efficiency ratio was calculated by dividing total noninterest expense by net interest income plus noninterest income, excluding securities gains or losses. Taxes are not part of this calculation. As of 2024 2023 (dollars in thousands) December 31 September 30 June 30 March 31 December 31 LOAN PORTFOLIO COMPOSITION Commercial and industrial $ 254,702 $ 245,738 $ 264,058 $ 269,560 $ 287,565 Real estate: Construction and development 218,617 213,014 231,053 273,300 296,639 Commercial real estate 866,684 866,112 899,120 906,684 923,195 Farmland 147,191 169,116 180,126 180,502 186,295 1-4 family residential 529,006 524,245 526,650 523,573 514,603 Multi-family residential 51,538 54,158 47,507 44,569 44,292 Consumer 51,394 52,530 53,642 54,375 57,059 Agricultural 11,726 11,293 12,506 12,418 12,685 Overdrafts 279 331 335 276 243 Total loans(1)(2) $ 2,131,137 $ 2,136,537 $ 2,214,997 $ 2,265,257 $ 2,322,576 Quarter Ended 2024 2023 (dollars in thousands) December 31 September 30 June 30 March 31 December 31 ALLOWANCE FOR CREDIT LOSSES Balance at beginning of period $ 28,543 $ 29,282 $ 30,560 $ 30,920 $ 31,140 Loans charged-off (281 ) (272 ) (115 ) (310 ) (242 ) Recoveries 278 33 37 200 22 Reversal of provision for credit losses (250 ) (500 ) (1,200 ) (250 ) — Balance at end of period $ 28,290 $ 28,543 $ 29,282 $ 30,560 $ 30,920 Allowance for credit losses / period-end loans 1.33 % 1.34 % 1.32 % 1.35 % 1.33 % Allowance for credit losses / nonperforming loans 758.6 560.2 470.4 496.0 552.9 Net charge-offs / average loans (annualized) 0.00 0.04 0.01 0.02 0.04 NONPERFORMING ASSETS Nonaccrual loans $ 3,729 $ 5,095 $ 6,225 $ 6,161 $ 5,592 Other real estate owned 1,184 15,184 15,184 14,900 — Repossessed assets owned 22 154 331 236 234 Total nonperforming assets $ 4,935 $ 20,433 $ 21,740 $ 21,297 $ 5,826 Nonaccrual loans as a percentage of total loans(1)(2) 0.17 % 0.24 % 0.28 % 0.27 % 0.24 % Nonperforming assets as a percentage of: Total loans(1)(2) 0.23 % 0.96 % 0.98 % 0.94 % 0.25 % Total assets 0.16 0.66 0.71 0.68 0.18 (1) Excludes outstanding balances of loans held for sale of $143,000, $770,000, $871,000, $874,000, and $976,000 as of December 31, September 30, June 30 and March 31, 2024, and December 31, 2023, respectively. (2) Excludes deferred loan fees of $282,000, $397,000, $468,000, $685,000, and $775,000 as of December 31, September 30, June 30 and March 31, 2024, and December 31, 2023, respectively. Quarter Ended 2024 2023 (dollars in thousands) December 31 September 30 June 30 March 31 December 31 NONINTEREST INCOME Service charges $ 1,142 $ 1,165 $ 1,098 $ 1,069 $ 1,123 Net realized gain on sale of loans 240 252 227 272 196 Fiduciary and custodial income 661 542 657 649 624 Bank-owned life insurance income 258 255 250 251 249 Merchant and debit card fees 1,775 1,817 2,122 1,706 1,760 Loan processing fee income 131 102 136 118 116 Mortgage fee income 37 46 43 41 30 Other noninterest income 1,482 975 66 1,152 698 Total noninterest income $ 5,726 $ 5,154 $ 4,599 $ 5,258 $ 4,796 NONINTEREST EXPENSE Employee compensation and benefits $ 11,048 $ 11,586 $ 11,723 $ 12,437 $ 12,715 Occupancy expenses 3,123 3,026 2,924 2,747 2,757 Legal and professional fees 716 775 841 772 954 Software and technology 1,733 1,649 1,653 1,642 1,740 Amortization 142 142 142 143 145 Director and committee fees 185 188 198 200 186 Advertising and promotions 267 239 208 169 352 ATM and debit card expense 819 791 785 609 763 Telecommunication expense 153 178 159 173 175 FDIC insurance assessment fees 320 359 365 360 321 Other noninterest expense 1,374 1,745 1,604 1,440 1,294 Total noninterest expense $ 19,880 $ 20,678 $ 20,602 $ 20,692 $ 21,402 Quarter Ended December 31, 2024 2023 (dollars in thousands) Average Outstanding Balance Interest Earned/ Interest Paid Average Yield/ Rate Average Outstanding Balance Interest Earned/ Interest Paid Average Yield/ Rate ASSETS Interest-earning assets: Total loans(1) $ 2,126,414 $ 34,319 6.42 % $ 2,329,227 $ 35,573 6.06 % Securities available for sale 332,903 3,185 3.81 187,119 1,540 3.27 Securities held to maturity 338,296 2,218 2.61 406,553 2,619 2.56 Nonmarketable equity securities 19,173 135 2.80 26,314 264 3.98 Interest-bearing deposits in other banks 115,669 1,405 4.83 56,207 800 5.65 Total interest-earning assets 2,932,455 41,262 5.60 3,005,420 40,796 5.39 Allowance for credit losses (28,511 ) (30,996 ) Noninterest-earning assets 225,152 223,204 Total assets $ 3,129,096 $ 3,197,628 LIABILITIES AND EQUITY Interest-bearing liabilities: Interest-bearing deposits $ 1,855,713 $ 14,301 3.07 % $ 1,788,863 $ 14,311 3.17 % Advances from FHLB and fed funds purchased 6,522 85 5.18 140,761 1,915 5.40 Line of credit — — — 4,255 95 8.86 Subordinated debt 42,570 513 4.79 46,438 534 4.56 Securities sold under agreements to repurchase 29,959 142 1.89 23,860 128 2.13 Total interest-bearing liabilities 1,934,764 15,041 3.09 2,004,177 16,983 3.36 Noninterest-bearing liabilities: Noninterest-bearing deposits 842,655 865,817 Accrued interest and other liabilities 37,308 33,496 Total noninterest-bearing liabilities 879,963 899,313 Equity 314,369 294,138 Total liabilities and equity $ 3,129,096 $ 3,197,628 Net interest rate spread(2) 2.51 % 2.03 % Net interest income $ 26,221 $ 23,813 Net interest margin(3) 3.56 % 3.14 % Net interest margin, fully taxable equivalent(4) 3.54 % 3.11 % (1) Includes average outstanding balances of loans held for sale of $820,000 and $799,000 for the quarter ended December 31, 2024 and 2023, respectively. (2) Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities. (3) Net interest margin is equal to net interest income divided by average interest-earning assets, annualized. (4) Net interest margin on a fully taxable equivalent basis is equal to net interest income adjusted for nontaxable income divided by average interest-earning assets, annualized, using a marginal tax rate of 21%. Year Ended December 31, 2024 2023 (dollars in thousands) Average Outstanding Balance Interest Earned/ Interest Paid Average Yield/ Rate Average Outstanding Balance Interest Earned/ Interest Paid Average Yield/ Rate ASSETS Interest-earning assets: Total loans(1) $ 2,207,359 $ 139,434 6.32 % $ 2,352,154 $ 136,086 5.79 % Securities available for sale 264,683 9,787 3.70 182,277 5,159 2.83 Securities held to maturity 358,418 9,325 2.60 449,097 11,210 2.50 Nonmarketable equity securities 21,536 857 3.98 27,371 1,288 4.71 Interest-bearing deposits in other banks 71,673 3,757 5.24 51,507 2,749 5.34 Total interest-earning assets 2,923,669 163,160 5.58 3,062,406 156,492 5.11 Allowance for credit losses (29,720 ) (31,601 ) Noninterest-earning assets 232,391 220,230 Total assets $ 3,126,340 $ 3,251,035 LIABILITIES AND EQUITY Interest-bearing liabilities: Interest-bearing deposits $ 1,815,672 $ 58,827 3.24 % $ 1,698,758 $ 44,981 2.65 % Advances from FHLB and fed funds purchased 64,699 3,498 5.41 226,214 11,626 5.14 Line of credit 275 24 8.73 4,168 363 8.71 Subordinated debt 44,175 2,047 4.63 47,873 2,143 4.48 Securities sold under agreements to repurchase 37,386 885 2.37 20,635 399 1.93 Total interest-bearing liabilities 1,962,207 65,281 3.33 1,997,648 59,512 2.98 Noninterest-bearing liabilities: Noninterest-bearing deposits 821,291 924,945 Accrued interest and other liabilities 36,672 30,924 Total noninterest-bearing liabilities 857,963 955,869 Equity 306,170 297,518 Total liabilities and equity $ 3,126,340 $ 3,251,035 Net interest rate spread(2) 2.25 % 2.13 % Net interest income $ 97,879 $ 96,980 Net interest margin(3) 3.35 % 3.17 % Net interest margin, fully taxable equivalent(4) 3.32 % 3.15 % (1) Includes average outstanding balances of loans held for sale of $806,000 and $1.2 million for the years ended December 31, 2024 and 2023, respectively. (2) Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities. (3) Net interest margin is equal to net interest income divided by average interest-earning assets. (4) Net interest margin on a fully taxable equivalent basis is equal to net interest income adjusted for nontaxable income divided by average interest-earning assets, using a marginal tax rate of 21%. NON-GAAP RECONCILING TABLES Tangible Book Value per Common Share As of 2024 2023 (dollars in thousands, except per share data) December 31 September 30 June 30 March 31 December 31 Equity attributable to Guaranty Bancshares, Inc. $ 318,498 $ 318,784 $ 308,043 $ 305,371 $ 303,300 Adjustments: Goodwill (32,160 ) (32,160 ) (32,160 ) (32,160 ) (32,160 ) Core deposit intangible, net (994 ) (1,100 ) (1,206 ) (1,312 ) (1,418 ) Total tangible common equity attributable to Guaranty Bancshares, Inc. $ 285,344 $ 285,524 $ 274,677 $ 271,899 $ 269,722 Common shares outstanding(1) 11,431,568 11,408,908 11,417,270 11,534,960 11,540,644 Book value per common share $ 27.86 $ 27.94 $ 26.98 $ 26.47 $ 26.28 Tangible book value per common share(1) 24.96 25.03 24.06 23.57 23.37 (1) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options. Net Unrealized Loss on Securities, Tax Effected, as a Percentage of Total Equity (dollars in thousands) December 31, 2024 Total equity(1) $ 319,074 Less: net unrealized loss on HTM securities, tax effected (24,875 ) Total equity, including net unrealized loss on AFS and HTM securities $ 294,199 Net unrealized loss on AFS securities, tax effected 16,398 Net unrealized loss on HTM securities, tax effected 24,875 Net unrealized loss on AFS and HTM securities, tax effected $ 41,273 Net unrealized loss on securities as % of total equity(1) 12.9 % Total equity before impact of unrealized losses $ 335,472 Net unrealized loss on securities as % of total equity before impact of unrealized losses 12.3 % Total average assets $ 3,129,096 Total equity to average assets 10.2 % Total equity, adjusted for tax effected net unrealized loss, to average assets 9.4 % (1) Includes the net unrealized loss on AFS securities of $16.4 million, tax effected. Cost of Total Deposits Quarter Ended Year Ended (dollars in thousands) December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Total average interest-bearing deposits $ 1,855,713 $ 1,821,395 $ 1,788,863 $ 1,815,672 $ 1,698,758 Adjustments: Noninterest-bearing deposits 842,655 800,573 865,817 821,291 924,945 Total average deposits $ 2,698,368 $ 2,621,968 $ 2,654,680 $ 2,636,963 $ 2,623,703 Total deposit-related interest expense $ 14,301 $ 15,243 $ 14,311 $ 58,827 $ 44,981 Average cost of interest-bearing deposits 3.07 % 3.33 % 3.17 % 3.24 % 2.65 % Average cost of total deposits 2.11 % 2.31 % 2.14 % 2.23 % 1.71 % About Non-GAAP Financial Measures Certain of the financial measures and ratios we present, including “tangible book value per common share,” “net unrealized loss on securities, tax effected, as a percentage of total equity” and “cost of total deposits” are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods. These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables. Conference Call Information The Company will hold a conference call to discuss fourth quarter and year-end 2024 financial results on Tuesday, January 21, 2025 at 10:00 am Central Time. The conference call will be hosted by Ty Abston, Chairman and CEO, and Shalene Jacobson, EVP and CFO. All conference attendees must register before the call at www.gnty.com/earningscall. The conference materials will be available by accessing the Investor Relations page on our website, www.gnty.com. A recording of the conference call will be available by 1:00 pm Central Time the day of the call and remain available through January 31, 2025 on our Investor Relations webpage. About Guaranty Bancshares, Inc. Guaranty Bancshares, Inc. is the parent company for Guaranty Bank & Trust, N.A. Guaranty Bank & Trust has 33 banking locations across 26 Texas communities located within the East Texas, Dallas/Fort Worth, Houston and Central Texas regions of the state. As of December 31, 2024, Guaranty Bancshares, Inc. had total assets of $3.1 billion, total loans of $2.1 billion and total deposits of $2.7 billion. Visit www.gnty.com for more information. Cautionary Statement Regarding Forward-Looking Information This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our results of operations, financial condition and financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Such factors include, without limitation, the “Risk Factors” referenced in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, and other risks and uncertainties listed from time to time in our reports and documents filed with the Securities and Exchange Commission. We can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this communication, and we do not intend, and assume no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.

Guaranty Bancshares, Inc. Reports Fourth Quarter and Year-End 2024 Financial Results

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