NYSE$GNTY

Guaranty Bancshares Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Guaranty Bancshares reported a net income of $8.0 million, driven by strong loan growth, but impacted by a provision for credit losses.

Guaranty Bancshares reported a net income of $8.0 million for Q4 2022, which included a $2.8 million provision for credit losses. Loan growth was strong, increasing by $112.1 million during the quarter, while deposits decreased by $109.4 million. The company's net earnings for the year ended December 31, 2022, were $40.4 million.

  • Strong loan growth of $112.1 million, or 4.9%, during the fourth quarter of 2022.
  • Deposits decreased 3.9% in the fourth quarter of 2022.
  • Net earnings per share were $0.67 per share, down from $0.92 per share in the prior quarter, primarily due to a $2.8 million provision for credit losses during the quarter.
  • Nonperforming assets as a percentage of total assets were 0.32% at December 31, 2022.

Headline financials

Total Revenue

$33.5M

Previous: $30.1M+11.4%
EPS (adj)

$0.67

Previous: $0.75-10.7%
Net Interest Margin

3.6%

Previous: 3.4%+5.3%
Efficiency Ratio

62.4%

Previous: 63.1%-1.1%
Capital Expenditures

$1.11M

Previous: $984K+12.8%
Free Cash Flow

$9.47M

Previous: $5.34M+77.4%
Net Income

$8.02M

Previous: $9.16M-12.4%
Operating Income

$9.78M

Previous: $11.1M-11.7%
Cash & Equivalents

$106M

Previous: $500M-78.7%
Total Assets

$3.35B

Previous: $3.09B+8.6%
Stock-Based Comp

$203K

Previous: $221K-8.1%

Revenue & EPS history

Guaranty Bancshares · Revenue · Quarterly

$33.5M

Q4 2022+11.4%vs Q4 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

Guaranty Bancshares expects to benefit from rate increases by the Federal Reserve in the first quarter of 2023 and from future loan repricing, but anticipates loan growth to slow considerably in 2023.

Tailwinds

  • The Bank is slightly asset-sensitive and should continue to benefit from expected rate increases by the Federal Reserve in the first quarter of 2023.
  • The Bank should benefit from future loan repricing.
  • The company is well-positioned for loan funding with a loan-to-deposit ratio at quarter-end of 88.7%.
  • Approximately $127.6 million in securities will mature or pay down during 2023.
  • As of December 31, 2022, $256.0 million, or 10.8% of our loan portfolio is fully floating and $1.3 billion, or 53.1% are adjustable rate term loans, repricing at defined future time periods.

Headwinds

  • Loan growth is expected to slow considerably in 2023.
  • Some margin compression is expected in 2023.
  • Economists are overwhelmingly predicting an economic recession in 2023
  • The company recorded a $2.8 million provision for credit losses due to incorporating economic forecasts for a recession into their CECL model.
  • The company's FHLB advances were $290.0 million as of December 31, 2022 and are expected to be paid down in 2023 from balance sheet cash flows.

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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