Guaranty Bancshares (GNTY) 8-K Guaranty Bancshares, Inc. Reports

Exhibit 99.1

Press Release

For Immediate Release

Guaranty Bancshares, Inc. Reports

Third Quarter Financial Results

MOUNT PLEASANT, Texas, October 23, 2017 /GlobeNewswire/ -- Guaranty Bancshares, Inc. (NASDAQ: GNTY), the holding company for Guaranty Bank & Trust, N.A. today reported third quarter 2017 results. The company's net income available to common shareholders was $4.1 million, or $0.37 per basic share, for the quarter ended September 30, 2017, compared to $3.4 million, or $0.38 per basic share, for the quarter ended September 30, 2016. The growth in net income was primarily attributable to growth in net interest income, before the provision for loan losses, of $1.4 million and an increase in noninterest income of $300,000. Returns on average assets and average equity for the third quarter were 0.87% and 7.99%, respectively, compared to 0.75% and 9.20%, respectively, for the same period during 2016. The company's earnings per share and return on average equity were impacted by the issuance of 2,300,000 shares of common stock in the company's initial public offering, which closed in May 2017.

Net interest income for the third quarter of 2017 and 2016 was $15.1 million and $13.7 million, respectively, an increase of 10.5%. Net interest margin for the third quarter of 2017 and 2016 was 3.38% and 3.26%, respectively. Net interest income and net interest margin, on a taxable equivalent basis, was $15.5 million and 3.55%, respectively, for the third quarter of 2017.

The provision for loan losses was $800,000 in the third quarter of 2017, compared with $800,000 in the second quarter of 2017 and $840,000 in the third quarter of 2016. The provision for loan losses in the third quarter of 2017 remained consistent with the prior year's quarter despite loan portfolio growth of 6.35% from September 30, 2016, primarily because a large specific reserve was calculated in the third quarter of 2016 that resulted in a higher provision at that time. The level of provision during the third quarter of 2017 is primarily attributable to specific reserves calculated for certain impaired loans and a slight increase in general reserves due to minor increases in some qualitative factors. Nonperforming assets as a percentage of total loans were 0.78% at September 30, 2017, compared to 0.71% at June 30, 2017, and 0.94% at September 30, 2016.

Noninterest income increased 8.8% in the third quarter of 2017 to $3.7 million, compared to $3.4 million in the same quarter a year ago. Merchant and debit card fees increased 12.8% to $778,000, compared to $690,000 in the same quarter last year due to continued growth in net new accounts and debit cards. Gain on sales of loans increased 21.2%, from $486,000 during the third quarter of 2016 to $589,000 in the third quarter of 2017. Other categories of noninterest income increased with the continued growth of the bank.

Noninterest expense for the third quarter of 2017 totaled $12.2 million, compared to $11.5 million for the third quarter of 2016, an increase of 6.0%. The increase in noninterest expense in the third quarter of 2017 was primarily driven by a $359,000 increase in salary and employee benefit expense when compared to the same quarter a year ago, a $218,000 increase in occupancy expenses and a $211,000 increase in legal and professional fees. The increase was partially offset by decreases in FDIC insurance expense of $138,000 and other non-interest expenses of $168,000. The company's efficiency ratio in the third quarter of 2017 was 64.70%, compared to 67.51% in the same quarter last year.

For the nine months ended September 30, 2017, net income increased 36.1% to $11.6 million from $8.5 million for the same period a year ago. Basic earnings per share rose to $1.17 for the nine months ended September 30, 2017 from $0.95 during the same period last year. Net interest income increased 10.9% to $44.1 million for the nine months ended September 30, 2017 from $39.8 million during the same period a year ago. The provision for loan losses totaled $2.3 million, compared to $3.2 million for the nine months ended September 30, 2016. Noninterest income was $10.5 million for the nine months ended September 30, 2017, compared to $9.6 million a year ago. Noninterest expense was $36.1 million for the nine months ended September 30, 2017, compared to $34.3 million during the same period last year.

As of September 30, 2017, consolidated assets for the company totaled $1.9 billion, compared to $1.8 billion at December 31, 2016 and $1.8 billion at September 30, 2016. Loans totaled $1.3 billion at quarter end, compared to loans of $1.2 billion at December 31, 2016, and $1.2 billion at September 30, 2016. Deposits totaled $1.6 billion at September 30, 2017, compared to $1.6 billion at December 31, 2016, and $1.5 billion at September 30, 2016. Shareholders' equity rose to $207.3 million as of September 30, 2017, compared to $141.9 million at December 31, 2016, and $148.0 million at September 30, 2016, primarily as a result of operating earnings and the proceeds of the Company's initial public offering.

The company's Chairman and Chief Executive Officer, Ty Abston, said, "We are pleased with our third quarter and year-to-date results. During the third quarter, we also announced our expansion into the growth markets of Austin and Ft. Worth, Texas. We are very pleased with the initial reception we’ve received in these new markets and feel they will be additive to Guaranty’s future growth prospects."

Guaranty Bancshares, Inc.
Consolidated Financial Summary (Unaudited)
(In thousands, except share and per share data)
	As of
	2017						2016
	September 30		June 30		March 31		December 31		September 30
ASSETS
Cash and due from banks	$	33,736	$	36,389	$	32,576	$	39,605	$	31,233
Federal funds sold	34,250		17,700		83,175		60,600		61,175
Interest-bearing deposits	27,075		29,217		28,006		27,338		26,891
Total cash and cash equivalents	95,061		83,306		143,757		127,543		119,299
Securities available for sale	238,133		246,233		214,463		156,925		143,243
Securities held to maturity	179,081		182,248		185,837		189,371		193,083
Loans held for sale	3,400		2,435		1,446		2,563		3,086
Loans, net	1,294,847		1,284,318		1,241,215		1,233,651		1,218,175
Accrued interest receivable	6,440		7,631		6,304		7,419		5,904
Premises and equipment, net	43,958		44,491		44,823		44,810		45,043
Other real estate owned	1,929		1,733		1,637		1,692		1,384
Cash surrender value of life insurance	18,376		18,035		17,922		17,804		17,212
Deferred tax asset	4,267		4,121		4,426		4,892		3,650
Core deposit intangible, net	2,870		3,016		3,162		3,308		3,453
Goodwill	18,742		18,742		18,742		18,742		18,742
Other assets	16,949		16,160		17,465		19,616		20,681
Total assets	$	1,924,053	$	1,912,469	$	1,901,199	$	1,828,336	$	1,792,955
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	405,678	$	387,725	$	370,810	$	358,752	$	347,876
Interest-bearing deposits	1,211,624		1,258,648		1,300,361		1,218,039		1,187,485
Total deposits	1,617,302		1,646,373		1,671,171		1,576,791		1,535,361
Securities sold under agreements to repurchase	12,920		14,153		12,663		10,859		12,709
Accrued interest and other liabilities	7,601		7,921		7,595		6,006		6,753
Other debt	—		—		18,929		18,286		9,643
Federal Home Loan Bank advances	65,157		25,161		25,165		55,170		60,174
Subordinated debentures	13,810		14,310		19,310		19,310		20,310
Total liabilities	1,716,790		1,707,918		1,754,833		1,686,422		1,644,950
Commitments and contingent liabilities:
KSOP-owned shares	—		—		34,300		31,661		39,923
Shareholders' equity	207,263		204,551		146,366		141,914		148,005
Less: KSOP-owned shares	—		—		34,300		31,661		39,923
Total shareholders' equity	207,263		204,551		112,066		110,253		108,082
Total liabilities and shareholders' equity	$	1,924,053	$	1,912,469	$	1,901,199	$	1,828,336	$	1,792,955
	Quarter Ended
	2017						2016
	September 30		June 30		March 31		December 31		September 30
INCOME STATEMENTS
Interest income	$	18,165	$	17,792	$	17,136	$	16,717	$	16,427
Interest expense	3,063		2,993		2,895		2,692		2,759
Net interest income	15,102		14,799		14,241		14,025		13,668

Provision for loan losses	800			800			650			400			840
Net interest income after provision for loan losses	14,302			13,999			13,591			13,625			12,828
Noninterest income	3,702			3,516			3,282			3,414			3,402
Noninterest expense	12,166			11,906			12,045			12,040			11,480
Income before income taxes	5,838			5,609			4,828			4,999			4,750
Income tax provision	1,699			1,633			1,312			1,425			1,380
Net earnings	$	4,139		$	3,976		$	3,516		$	3,574		$	3,370
PER COMMON SHARE DATA
Earnings per common share, basic	$	0.37		$	0.40		$	0.40		$	0.40		$	0.38
Earnings per common share, diluted	0.37			0.39			0.40			0.40			0.38
Cash dividends per common share	0.13			0.26			—			0.26			—
Book value per common share - end of quarter	18.74			18.50			16.72			16.22			16.53
Tangible book value per common share - end of quarter(1)	16.79			16.53			14.22			13.70			14.05
Common shares outstanding - end of quarter	11,058,956			11,058,956			8,753,933			8,751,923			8,955,476
Weighted-average common shares outstanding, basic	11,058,956			10,019,049			8,751,945			8,968,262			8,955,476
Weighted-average common shares outstanding, diluted	11,164,429			10,106,825			8,784,410			8,976,328			8,965,057
PERFORMANCE RATIOS
Return on average assets (annualized)	0.87		%	0.85		%	0.76		%	0.79		%	0.75		%
Return on average equity (annualized)	7.99			8.85			9.72			9.68			9.20
Net interest margin (annualized)	3.38			3.40			3.24			3.32			3.26
Efficiency ratio (2)	64.70			65.10			68.74			69.04			67.51
	Nine Months Ended
	September 30,
	2017			2016
INCOME STATEMENTS
Interest income	$	53,093		$	47,991
Interest expense	8,951			8,176
Net interest income	44,142			39,815
Provision for loan losses	2,250			3,240
Net interest income after provision for loan losses	41,892			36,575
Noninterest income	10,500			9,602
Noninterest expense	36,117			34,340
Income before income taxes	16,275			11,837
Income tax provision	4,644			3,290
Net earnings	$	11,631		$	8,547
PER COMMON SHARE DATA
Earnings per common share, basic	$	1.17		$	0.95
Earnings per common share, diluted	1.16			0.95
Cash dividends per common share	0.39			0.26
Book value per common share - end of quarter	18.74			16.53
Common shares outstanding - end of quarter	11,058,956			8,955,476
Weighted-average common shares outstanding, basic	9,951,767			8,991,671
Weighted-average common shares outstanding, diluted	10,027,272			9,001,252
PERFORMANCE RATIOS
Return on average assets	0.82		%	0.65		%
Return on average equity	8.74			7.89
Net interest margin	3.37			3.25
Efficiency ratio (2)	66.13			69.47

(1) See Reconciliation of non-GAAP Financial Measures table

(2) 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.

Guaranty Bancshares, Inc.
Selected Financial Data (Unaudited)
(In thousands)
	As of
	2017									2016
	September 30			June 30			March 31			December 31			September 30
LOAN PORTFOLIO COMPOSITION
Commercial and industrial	$	192,663		$	217,497		$	205,903		$	223,997		$	224,617
Real estate:
Construction and development	201,067			177,600			152,760			129,366			125,045
Commercial real estate	393,314			378,722			372,855			367,656			360,676
Farmland	54,349			63,839			62,130			62,362			61,902
1-4 family residential	365,889			356,457			360,873			362,952			348,401
Multi-family residential	23,235			28,833			23,943			26,079			34,538
Consumer	51,711			51,677			52,816			53,505			54,345
Agricultural	24,449			21,854			21,473			18,901			19,223
Overdrafts	698			364			390			317			594
Total loans(1)	$	1,307,375		$	1,296,843		$	1,253,143		$	1,245,135		$	1,229,341
	Quarter Ended
	2017									2016
	September 30			June 30			March 31			December 31			September 30
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period	$	12,525		$	11,928		$	11,484		$	11,166		$	11,606
Loans charged-off	(929		)	(302		)	(248		)	(243		)	(1,330		)
Recoveries	132			99			42			161			50
Net charge-offs	(797		)	(203		)	(206		)	(82		)	(1,280		)
Provision for loan losses	800			800			650			400			840
Balance at end of period	$	12,528		$	12,525		$	11,928		$	11,484		$	11,166
Allowance for loan losses / period-end loans	0.96		%	0.97		%	0.95		%	0.92		%	0.91		%
Allowance for loan losses / nonperforming loans	217.7			316.4			389.0			260.5			179.4
Net charge-offs / average loans (annualized)	0.25			0.06			0.07			0.03			0.42
NON-PERFORMING ASSETS
Non-performing loans(2)	$	5,755		$	3,958		$	3,066		$	4,409		$	6,223
Other real estate owned	1,929			1,733			1,637			1,692			1,384
Repossessed assets owned	2,479			3,501			3,526			3,530			3,973
Total non-performing assets	$	10,163		$	9,192		$	8,229		$	9,631		$	11,580
Non-performing assets as a percentage of:
Total loans(1)	0.78		%	0.71		%	0.66		%	0.77		%	0.94		%
Total assets	0.53		%	0.48		%	0.43		%	0.53		%	0.65		%
Restructured loans-nonaccrual	—			—			42			43			42
Restructured loans-accruing	316			323			330			462			1,354

	Quarter Ended
	2017						2016
	September 30		June 30		March 31		December 31		September 30
NONINTEREST INCOME
Service charges	$	986	$	938	$	877	$	905	$	914
Net realized gain (loss) on securities transactions	—		25		—		—		64
Net realized gain on sale of loans	589		472		429		487		486
Fiduciary income	362		343		350		347		364
Bank-owned life insurance income	116		114		117		116		112
Merchant and debit card fees	778		791		732		715		690
Loan processing fee income	146		163		145		149		161
Other noninterest income	725		670		632		695		611
Total noninterest income	$	3,702	$	3,516	$	3,282	$	3,414	$	3,402
NONINTEREST EXPENSE
Employee compensation and benefits	$	6,729	$	6,440	$	6,987	$	6,554	$	6,370
Occupancy expenses	1,938		1,866		1,748		1,674		1,720
Legal and professional fees	692		419		361		577		481
Software and technology	533		517		483		502		451
Amortization	258		259		264		261		240
Director and committee fees	253		248		259		260		222
Advertising and promotions	303		335		241		263		278
ATM and debit card expense	253		264		249		228		203
Telecommunication expense	128		141		143		171		130
FDIC insurance assessment fees	162		174		191		300		300
Other noninterest expense	917		1,243		1,119		1,250		1,085
Total noninterest expense	$	12,166	$	11,906	$	12,045	$	12,040	$	11,480
	Nine Months Ended
	September 30,
	2017		2016
NONINTEREST INCOME
Service charges	$	2,801	$	2,625
Net realized gain (loss) on securities transactions	25		82
Net realized gain on sale of loans	1,490		1,231
Fiduciary income	1,055		1,058
Bank-owned life insurance income	347		337
Merchant and debit card fees	2,301		2,026
Loan processing fee income	454		473
Other noninterest income	2,027		1,770
Total noninterest income	$	10,500	$	9,602

NONINTEREST EXPENSE
Employee compensation and benefits	$	20,156	$	19,057
Occupancy expenses	5,552		5,196
Legal and professional fees	1,472		1,358
Software and technology	1,533		1,368
Amortization	781		719
Director and committee fees	760		680
Advertising and promotions	879		752
ATM and debit card expense	766		705
Telecommunication expense	412		438
FDIC insurance assessment fees	527		900
Other noninterest expense	3,279		3,167
Total noninterest expense	$	36,117	$	34,340

(1) Excludes outstanding balances of loans held for sale of $3.4 million, $2.4 million, $1.4 million, $2.6 million and $3.1 million as of September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016 and September 30, 2016, respectively.

(2) Restructured loans-nonaccrual are included in nonaccrual loans which are a component of nonperforming loans.

Guaranty Bancshares, Inc.
Selected Financial Data (Unaudited)
(In thousands)
	For the Three Months Ended September 30,
	2017							2016
	Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate		Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate
ASSETS
Interest-earnings assets:
Total loans(1)	$	1,300,307		$	15,486	4.72	%	$	1,223,611		$	14,294	4.65	%
Securities available for sale	245,409			1,376		2.22	%	163,563			709		1.72	%
Securities held to maturity	180,737			1,088		2.39	%	196,003			1,252		2.54	%
Nonmarketable equity securities	6,541			59		3.58	%	8,816			61		2.75	%
Interest-bearing deposits in other banks	40,997			156		1.51	%	75,112			111		0.59	%
Total interest-earning assets	1,773,991			$	18,165	4.06	%	1,667,105			$	16,427	3.92	%
Allowance for loan losses	(12,492		)					(11,843		)
Noninterest-earnings assets	145,958							140,087
Total assets	$	1,907,457						$	1,795,349
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing deposits	$	1,224,991		$	2,730	0.88	%	$	1,162,060		$	2,329	0.80	%
Advances from FHLB and fed funds purchased	50,420			157		1.24	%	93,001			97		0.41	%
Other debt	—			—		—	%	10,000			104		4.14	%
Subordinated debentures	13,821			164		4.71	%	20,310			217		4.25	%
Securities sold under agreements to repurchase	14,262			12		0.33	%	11,952			12		0.40	%
Total interest-bearing liabilities	1,303,494			$	3,063	0.93	%	1,297,323			$	2,759	0.85	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits	390,043							344,721
Accrued interest and other liabilities	6,798							6,752
Total noninterest-bearing liabilities	396,841							351,473
Shareholders’ equity	207,122							146,553
Total liabilities and shareholders’ equity	$	1,907,457						$	1,795,349
Net interest rate spread(2)						3.13	%						3.07	%
Net interest income				$	15,102						$	13,668
Net interest margin(3)						3.38	%						3.26	%

(1) Includes average outstanding balances of loans held for sale of $2.1 million and $1.7 million for the three months ended September 30, 2017 and 2016, 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.

	For the Nine Months Ended September 30,
	2017							2016
	Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate		Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate
ASSETS
Interest-earnings assets:
Total loans(1)	$	1,269,387		$	45,115	4.75	%	$	1,158,807		$	40,857	4.71	%
Securities available for sale	216,908			3,678		2.27	%	216,744			3,057		1.88	%
Securities held to maturity	184,269			3,340		2.42	%	179,963			3,549		2.63	%
Nonmarketable equity securities	7,012			379		7.23	%	8,452			193		3.05	%
Interest-bearing deposits in other banks	72,948			581		1.06	%	74,525			335		0.60	%
Total interest-earning assets	1,750,524			$	53,093	4.06	%	1,638,491			$	47,991	3.91	%
Allowance for loan losses	(12,040		)					(10,654		)
Noninterest-earnings assets	144,937							137,796
Total assets	$	1,883,421						$	1,765,633
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing deposits	$	1,243,536		$	7,761	0.83	%	$	1,169,468		$	6,791	0.78	%
Advances from FHLB and fed funds purchased	41,661			294		0.94	%	65,503			240		0.49	%
Other debt	8,973			300		4.48	%	13,650			452		4.42	%
Subordinated debentures	16,607			559		4.50	%	20,642			656		4.25	%
Securities sold under agreements to repurchase	12,937			37		0.38	%	12,264			37		0.40	%
Total interest-bearing liabilities	1,323,714			$	8,951	0.90	%	1,281,527			$	8,176	0.85	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits	375,655							333,640
Accrued interest and other liabilities	6,650							5,939
Total noninterest-bearing liabilities	382,305							339,579
Shareholders’ equity	177,402							144,527
Total liabilities and shareholders’ equity	$	1,883,421						$	1,765,633
Net interest rate spread(2)						3.15	%						3.06	%
Net interest income				$	44,142						$	39,815
Net interest margin(3)						3.37	%						3.25	%

(1) Includes average outstanding balances of loans held for sale of $3.5 million and $3.2 million for the nine months ended September 30, 2017 and 2016, 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.

Guaranty Bancshares, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In thousands, except share and per share data)
	As of
	2017									2016
	September 30			June 30			March 31			December 31			September 30
Total shareholders’ equity, including KSOP-owned shares	$	207,263		$	204,551		$	146,366		$	141,914		$	148,005
Adjustments:
Goodwill	(18,742		)	(18,742		)	(18,742		)	(18,742		)	(18,742		)
Core deposit and other intangibles	(2,870		)	(3,016		)	(3,162		)	(3,308		)	(3,453		)
Total tangible common equity	$	185,651		$	182,793		$	124,462		$	119,864		$	125,810
Common shares outstanding - end of period(1)	11,058,956			11,058,956			8,753,933			8,751,923			8,955,476
Book value per common share	$	18.74		$	18.50		$	16.72		$	16.22		$	16.53
Tangible book value per common share	$	16.79		$	16.53		$	14.22		$	13.70		$	14.05

(1) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options.

About Non-GAAP Financial Measures

Certain of the financial measures and ratios we present, including “tangible book value per share” 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.

About Guaranty Bancshares, Inc.

Guaranty Bancshares, Inc. is a bank holding company that conducts banking activities through its wholly-owned subsidiary, Guaranty Bank & Trust, N.A. As one of the oldest regional community banks in Texas, Guaranty Bank & Trust provides its customers with a full array of relationship-driven commercial and consumer banking products and services, as well as mortgage, trust, and wealth management products and services that are tailored to meet the needs of small and medium-sized businesses, professionals, and individuals. Guaranty Bank & Trust has 26 banking locations across 18 Texas communities located within the East Texas, Dallas/Fort Worth and Central Texas regions of the state. 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 Registration Statement on Form S-1 filed with the Securities and Exchange Commission (SEC), other risks

and uncertainties listed from time to time in our reports and documents filed with the SEC, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, and the following factors: business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic market areas; economic, market, operational, liquidity, credit and interest rate risks associated with our business; the composition of our loan portfolio, including deteriorating asset quality and higher loan charge-offs; the laws and regulations applicable to our business; our ability to achieve organic loan and deposit growth and the composition of such growth; increased competition in the financial services industry, nationally, regionally or locally; our ability to maintain our historical earnings trends; our ability to raise additional capital to execute our business plan; acquisitions and integrations of acquired businesses; systems failures or interruptions involving our information technology and telecommunications systems or third-party servicers; the composition of our management team and our ability to attract and retain key personnel; the fiscal position of the U.S. federal government and the soundness of other financial institutions; and the amount of nonperforming and classified assets we hold. 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.

Contact:

Cappy A. Payne

Senior Executive Vice President and Chief Financial Officer

(888) 572-9881

investors@gnty.com

Source: Guaranty Bancshares, Inc.