NYSE$GNTY

Guaranty Bancshares Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$32.9M

Previous: $29.4M+11.8%
EPS (adj)

$0.89

Previous: $0.85+4.7%
Net Interest Margin

3.6%

Previous: 3.4%+4.9%
Efficiency Ratio

59.8%

Previous: 60.1%-0.5%
Return on Avg Assets

1.4%

Previous: 1.4%-4.9%
Return on Avg Equity

14.8%

Previous: 14.6%+1.4%
Capital Expenditures

$1.2M

Previous: $610K+96.2%
Free Cash Flow

$2.84M

Previous: $11.2M-74.6%
Net Income

$10.8M

Previous: $10.4M+3.2%
Operating Income

$13.2M

Previous: $12.7M+3.9%
Cash & Equivalents

$56.5M

Previous: $447M-87.4%
Total Assets

$3.28B

Previous: $2.93B+11.9%
Stock-Based Comp

$165K

Previous: $167K-1.2%

Revenue & EPS history

Guaranty Bancshares · Revenue · Quarterly

$32.9M

Q2 2022+11.8%vs Q2 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Guaranty Bancshares · $2.11B total across 9 segments · Q2 2022

  • Commercial Real Estate
    $750M
  • 1-4 Family Residential
    $451M
  • Construction & Development
    $350M
  • Commercial & Industrial
    $269M
  • Farmland
    $166M
  • Consumer
    $56.4M
  • Multi-Family Residential
    $56M
  • Agricultural
    $14.5M
  • Overdrafts
    $435K

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.

Tailwinds

  • 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%.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 6 quarterly earnings reports

Historical avg

+0.6%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+4.0%

Avg return

30 days after

46%

18 / 39 earnings

Positive

+16.9%

Q4 2025

Best reaction

-11.7%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025
Q2 2025-0.8%-0.9%+1.2%
Q1 2025+0.9%-0.1%+4.7%
Q4 2025+16.9%+17.8%+17.5%
Q3 2024-2.8%-6.7%+1.2%
Q2 2024+2.2%+2.6%-6.4%
Q1 2024-4.0%+4.3%+5.9%
Q4 2023+4.0%
Q3 2023+0.9%
Q2 2023+14.7%
Q1 2023-11.7%
Q4 2022-2.9%
Q3 2022+2.0%
Q2 2022-0.2%
Q1 2022+3.8%
Q4 2021+1.7%
Q3 2021+4.3%
Q2 2021-4.1%
Q1 2021+0.5%
Q4 2020+2.1%
Q3 2020+0.5%
Q2 2020+7.0%
Q1 2020-0.4%
Q4 2019-0.7%
Q3 2019+5.8%
Q2 2019+1.5%
Q1 2019-2.2%
Q4 2018-5.0%
Q3 2018-2.3%
Q2 2018-0.3%
Q1 2018-1.8%
Q4 2015-1.0%
Q4 2017-2.0%
Q3 2016-0.7%
Q3 2017-3.2%
Q2 2016+0.7%
Q2 2017+1.0%
Q4 2016-0.5%
Q1 2017-0.5%
Q1 2016-0.5%

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