EX-99.1 2 gnty-ex99_1.htm EX-99.1

Exhibit 99.1

Press Release

For Immediate Release

Guaranty Bancshares, Inc. Reports

Fourth Quarter and Year-End 2023 Financial Results

Addison, Texas – January 16, 2024 / 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, 2023. The Company's net income available to common shareholders was $5.9 million, or $0.51 per basic share, for the quarter ended December 31, 2023, compared to $6.3 million, or $0.54 per basic share, for the quarter ended September 30, 2023 and $8.0 million, or $0.67 per basic share, for the quarter ended December 31, 2022. Return on average assets and average equity for the fourth quarter of 2023 were 0.73% and 7.93%, respectively, compared to 0.78% and 8.43%, respectively, for the third quarter of 2023 and 0.95% and 10.88%, respectively, for the fourth quarter of 2022. The decrease in earnings during the fourth quarter of 2023 compared to the third quarter of 2023 was primarily due to fluctuations in general operating expenses. The decrease in earnings in the fourth quarter of 2023 compared to the fourth quarter of 2022 was primarily due to lower net interest income in the current quarter, offset by a $2.8 million provision for credit losses in the prior year quarter.

"Despite the many industry headwinds in 2023, our earnings were relatively good. Our net interest margin hit its lowest point in 2023 during the third quarter but has steadily increased each month in the fourth quarter as our loans reprice and cost of non-maturing deposits remain steady. Our balance sheet is strong and our earnings stream continues to produce consistent results. Non-performing assets remain very low and although we anticipate the need to work with some borrowers as their loan rates adjust, we do not foresee any significant problems as a result of the higher interest rate environment or economic slowdown at this point. We are looking forward to 2024 and have built a balance sheet that will allow us to grow and capitalize on new opportunities when the timing is right and economic conditions become less uncertain. Our liquidity and capital remains very healthy and we continue to focus on driving long term shareholder value," said Ty Abston, the Company's Chairman and Chief Executive Officer.

QUARTERLY AND ANNUAL HIGHLIGHTS

•
Strong Asset Quality. Nonperforming assets as a percentage of total assets were 0.18% at December 31, 2023, compared to 0.09% at September 30, 2023 and 0.32% at December 31, 2022. Net charge-offs (annualized) to average loans were 0.04% for the quarter ended December 31, 2023, compared to 0.11% for the quarter ended September 30, 2023, and 0.01% for the quarter ended December 31, 2022. Net charge-offs to average loans for the years ending December 31, 2023 and 2022 were 0.04% and 0.03%, respectively.

Commercial real estate (CRE) loans, particularly office related loans, have received increased scrutiny in recent months. Our CRE loans and real estate C&D loans represent 39.7% and 12.8% of the total loan portfolio, respectively. Office-related loans represent 4.6% of the total loan portfolio and have an average balance of $515,000.

•
Granular and Stable Core Deposit Base. As of December 31, 2023, we have 87,664 total deposit accounts with an average account balance of $30,038. We have a historically reliable core deposit base, with strong and trusted banking relationships. Total deposits decreased by $25.0 million during the fourth quarter, which consisted primarily of a decrease in DDA balances of $48.6 million, a decrease in time deposits of $8.1 million and offset by an increase in savings and MMDA balances of $33.5 million. The decrease in time deposits resulted in part due to $25.0 million in brokered CDs that matured and were not renewed during the fourth quarter. The Bank has not historically used brokered deposits and does not foresee a reliance on them going forward, however, our year-end deposit balance does include $25.0 million of brokered deposits that mature in February 2024 and were issued, along with the $25.0 million that matured in the fourth quarter, to test their availability as a contingent liquidity source. Excluding public funds and bank-owned accounts, our uninsured deposits as of December 31, 2023 were 25.07% of total deposits.

Interest rates paid on deposits during the quarter stabilized with minimal increases. Despite the decrease in DDA during the quarter, noninterest-bearing deposits still represent 32.4% of total deposits. Our cost of interest-bearing deposits increased 17 basis points during the quarter from 3.00% in the prior quarter to 3.17%, representing a beta on interest-bearing deposits of approximately 62.7% for the linked quarter compared to the federal funds target rates. These increases are primarily due to renewals of maturing certificates of deposit into new CD's paying higher rates. Our cost of total deposits for the fourth quarter of 2023 increased 16 basis points from 1.98% in the prior quarter to 2.14%, representing a beta on total deposits of approximately 59.0% for the linked quarter.

•
Healthy Capital and Liquidity. Our capital and liquidity ratios, as well as contingent liquidity sources, remain very healthy. During the fourth quarter of 2023, we repurchased 24,800 shares, or 0.21% of average shares outstanding during the period, at an average price of $27.76 per share. During the year, we repurchased 434,798 shares at an average price of $25.82 per share. Our liquidity ratio, calculated as cash and cash equivalents and unpledged investments divided by total liabilities, was 12.2% as of December 31, 2023, compared to 14.5% as of December 31, 2022. Our total available contingent liquidity, net of current outstanding borrowings, is $1.2 billion, consisting of FHLB, FRB and correspondent bank fed funds and revolving lines of credit.

1

Finally, our total equity to average quarterly assets as of December 31, 2023 was 9.5%. If we had to recognize our entire unrealized losses on both AFS and HTM securities, our total equity to average assets ratio would be 8.8%†, which is still a strong capital level under regulatory requirements.

† 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 provision for credit losses, in the fourth quarter of 2023 and 2022 was $23.8 million and $28.4 million, respectively, a decrease of $4.5 million, or 16.0%. The decrease in net interest income resulted from an increase in interest expense of $9.6 million, or 130.7%, compared to the prior year quarter, which was partially offset by an increase in interest income of $5.1 million, or 14.2%, from the same quarter in the prior year. The increases in both interest income and expense resulted primarily from higher rates during the period. Interest expense was also impacted by a shift from noninterest-bearing to interest-bearing deposit accounts, which resulted in increased expense in the fourth quarter of 2023 compared to the prior year quarter.

Net interest margin, on a fully taxable equivalent basis, for the fourth quarter of 2023 and 2022 was 3.11% and 3.57%, respectively. Net interest margin decreased 46 basis points primarily due to interest-bearing liabilities repricing faster than our interest-earning assets and a shift from no or lower interest cost DDA and money market accounts to higher cost certificates of deposit. The cost of interest-bearing liabilities increased 184 basis points from the prior year quarter, while interest earning asset yields increased 90 basis points. The increase in the cost of interest-bearing liabilities was due primarily to an increase in the cost of interest-bearing deposits from 1.08% to 3.17%, a change of 209 basis points, in the fourth quarter of 2023 compared to the same period in 2022, as well as increased rates on FHLB advances, which increased from 3.97% to 5.40%, an increase of 143 basis points, from the prior year quarter. The increases in cost were partially offset by increases in yield on the loan portfolio from 5.19% to 6.06%, or 87 basis points, as well as 38 and 34 basis point increases in yield on AFS and HTM securities, respectively. Although the cost of interest-bearing liabilities have repriced more quickly during this period, the weighted average yield on $89.6 million in new loans originated in the fourth quarter was 8.61%.

Net interest income, before the provision for credit losses, increased $511,000, or 2.2%, from $23.3 million in the third quarter of 2023 to $23.8 million in the fourth quarter of 2023. The increase in net interest income resulted primarily from an increase in interest income of $978,000, or 2.5%, partially offset by an increase in interest expense of $467,000, or 2.8%. The increase in interest income was primarily due to higher interest earned on loans of $808,000, or 2.3%, from the prior quarter and higher interest earned on securities of $103,000, or 2.5%. The increase in interest expense resulted primarily from an increase of $1.2 million, or 9.5%, in interest-bearing deposit expense, partially offset by a decrease in FHLB advances expense of $673,000, or 26.0%, and a decrease in interest expense on other borrowed money of $102,000, or 31.4%, from the prior quarter.

Net interest margin, on a taxable equivalent basis, increased from 3.02% for the third quarter of 2023 to 3.11% for the fourth quarter of 2023, an increase of nine basis points. The increase in net interest margin was primarily due to an increase on loan yield from 5.91% for the third quarter of 2023 to 6.06% for the fourth quarter of 2023, a change of 15 basis points. This increase was partially offset by an increase in the cost of interest-bearing deposits from 3.00% in the third quarter to 3.17% in the fourth quarter of 2023, a change of 17 basis points.

We recorded no provision for credit losses during 2023. During the fourth quarter of 2022, we recorded a $2.8 million provision to incorporate forecasts for an economic downturn and possible borrower stressors into our CECL model. The factors that were adjusted in the fourth quarter of 2022 remain relevant, however certain minor adjustments were made in subsequent quarters to reflect current portfolio credit quality trends. As of December 31, 2023 and December 31, 2022, our allowance for credit losses as a percentage of total loans was 1.33% and 1.34%, respectively.

Noninterest income decreased $326,000, or 6.4%, in the fourth quarter of 2023 to $4.8 million, compared to $5.1 million for the fourth quarter of 2022. The decrease from the same quarter in 2022 was partially due to a gain on securities sold of $172,000 in the prior year quarter and no gain on securities sales in the current quarter. There was also a decrease in the gain on sale of loans of $114,000, or 36.8% along with a $51,000, or 63.0%, decrease in mortgage fee income compared to the same quarter in the prior year.

Noninterest expense increased $505,000, or 2.4%, in the fourth quarter of 2023 to $21.4 million, compared to $20.9 million for the fourth quarter of 2022. The increase in noninterest expense in the fourth quarter of 2023 was driven primarily by a $351,000, or 2.8%, increase in employee compensation and benefits, an increase in software and technology expense of $215,000, or 14.1%, and a $175,000, or 22.5%, increase in legal and professional fees primarily related to recruiting fees compared to the fourth quarter of 2022. These were partially offset by a $136,000, or 27.9%, decrease in advertising and promotions expense.

Noninterest income in the fourth quarter of 2023 decreased by $143,000, or 2.9%, from $4.9 million in the third quarter of 2023. The decrease is primarily due to a decrease in other noninterest income of $62,000, or 8.2%, primarily the result of decreased credit card income during the period. Gain on sale of loans decreased $22,000, or 10.1%, while bank-owned life insurance income decreased $17,000, or 6.4%. Additionally, mortgage fee income fell $16,000, or 34.8%, and loan processing fee income decreased $12,000, or 9.4% from the third quarter.

Noninterest expense increased $888,000, or 4.3%, in the fourth quarter of 2023, from $20.5 million for the quarter ended September 30, 2023. The increase resulted from an increase of $771,000, or 6.5%, in employee compensation and benefits primarily due to annual raises, which went into effect during the fourth quarter. There was also a $250,000, or 16.8%, increase in software and technology

2

expense and a $64,000, or 22.2%, increase in advertising and promotions expense during the fourth quarter of 2023 compared to the third quarter of 2023. These increases were partially offset by a $203,000, or 6.9%, decrease in occupancy expenses due to lower than anticipated property taxes payable and a reverse accrual posted in the fourth quarter, compared with the third quarter of 2023.

The Company’s efficiency ratio in the fourth quarter of 2023 was 74.81%, compared to 62.42% in the prior year quarter and 72.64% in the third quarter of 2023.

FINANCIAL CONDITION

Consolidated assets for the Company totaled $3.18 billion at December 31, 2023, compared to $3.23 billion at September 30, 2023 and $3.35 billion at December 31, 2022.

Gross loans increased slightly by $4.3 million, or 0.19%, during the quarter resulting in a gross loan balance of $2.32 billion at both December 31, 2023 and September 30, 2023. Our loan growth is entirely due to organic loan growth during the quarter and not to purchases of assets.

Gross loans decreased $55.6 million, or 2.3%, from $2.38 billion at December 31, 2022. The decrease in gross loans during the fourth quarter of 2023 compared to the fourth quarter of 2022 resulted from tightened credit underwriting standards and loan terms, along with fewer borrower requests in response to higher interest rates. Additionally, there was a $10.7 million decrease in warehouse lending loans, as we discontinued that line of business in the second quarter of 2023.

Total deposits decreased by $25.0 million, or 0.9%, to $2.63 billion at December 31, 2023, compared to $2.66 billion at September 30, 2023, and decreased $47.9 million, or 1.8%, from $2.68 billion at December 31, 2022. The decrease in deposits during the fourth quarter resulted from a decrease in noninterest-bearing deposits of $50.4 million, offset by an increase in interest-bearing deposits of $25.4 million. We also allowed $25.0 million in brokered certificates of deposit to mature and not renew during the fourth quarter of 2023. The decrease in deposits during the current quarter compared to the prior year quarter resulted primarily from a decrease in noninterest-bearing deposits of $199.2 million, partially offset by an increase in interest-bearing deposits of $151.3 million.

Nonperforming assets as a percentage of total loans were 0.25% at December 31, 2023, compared to 0.13% at September 30, 2023 and 0.46% at December 31, 2022. Nonperforming assets as a percentage of total assets were 0.18% at December 31, 2023, compared to 0.09% at September 30, 2023, and 0.32% at December 31, 2022. The Bank's nonperforming assets consist primarily of nonaccrual loans. The decrease in nonperforming assets compared to the prior year end is primarily due to the resolution of several lower balance nonperforming assets during 2023.

Total equity was $303.8 million as of December 31, 2023, compared to $296.8 million at September 30, 2023 and $295.6 million at December 31, 2022. The increase from the previous quarter resulted primarily from net income of $5.9 million and a reduction in accumulated other comprehensive loss of $4.2 million due to increases in the fair value of available for sale securities during the period. This was partially offset by the payment of dividends of $2.7 million during the fourth quarter of 2023.

3

|  | As of |
|  | 2023 |  |  | 2022 |
(dollars in thousands) |  | December 31 |  |  | September 30 |  |  | June 30 |  |  | March 31 |  |  | December 31 |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 47,744 |  |  | $ | 47,922 |  |  | $ | 47,663 |  |  | $ | 59,030 |  |  | $ | 52,390 |
Federal funds sold |  |  | 36,575 |  |  |  | 73,275 |  |  |  | 44,950 |  |  |  | 95,400 |  |  |  | 47,275 |
Interest-bearing deposits |  |  | 5,205 |  |  |  | 8,980 |  |  |  | 4,738 |  |  |  | 3,695 |  |  |  | 6,802 |
Total cash and cash equivalents |  |  | 89,524 |  |  |  | 130,177 |  |  |  | 97,351 |  |  |  | 158,125 |  |  |  | 106,467 |
Securities available for sale |  |  | 196,195 |  |  |  | 178,644 |  |  |  | 166,596 |  |  |  | 173,744 |  |  |  | 188,927 |
Securities held to maturity |  |  | 404,208 |  |  |  | 408,308 |  |  |  | 437,292 |  |  |  | 476,105 |  |  |  | 509,008 |
Loans held for sale |  |  | 976 |  |  |  | 2,506 |  |  |  | 795 |  |  |  | 1,260 |  |  |  | 3,156 |
Loans, net |  |  | 2,290,881 |  |  |  | 2,286,163 |  |  |  | 2,300,882 |  |  |  | 2,344,240 |  |  |  | 2,344,245 |
Accrued interest receivable |  |  | 13,143 |  |  |  | 11,307 |  |  |  | 11,110 |  |  |  | 10,443 |  |  |  | 11,555 |
Premises and equipment, net |  |  | 57,018 |  |  |  | 56,712 |  |  |  | 56,151 |  |  |  | 55,457 |  |  |  | 54,291 |
Other real estate owned |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 38 |  |  |  | 38 |
Cash surrender value of life insurance |  |  | 42,348 |  |  |  | 42,096 |  |  |  | 41,830 |  |  |  | 38,619 |  |  |  | 38,404 |
Core deposit intangible, net |  |  | 1,418 |  |  |  | 1,524 |  |  |  | 1,633 |  |  |  | 1,746 |  |  |  | 1,859 |
Goodwill |  |  | 32,160 |  |  |  | 32,160 |  |  |  | 32,160 |  |  |  | 32,160 |  |  |  | 32,160 |
Other assets |  |  | 56,920 |  |  |  | 80,816 |  |  |  | 60,396 |  |  |  | 64,350 |  |  |  | 61,385 |
Total assets |  | $ | 3,184,791 |  |  | $ | 3,230,413 |  |  | $ | 3,206,196 |  |  | $ | 3,356,287 |  |  | $ | 3,351,495 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing |  | $ | 852,957 |  |  | $ | 903,391 |  |  | $ | 915,462 |  |  | $ | 992,527 |  |  | $ | 1,052,144 |
Interest-bearing |  |  | 1,780,289 |  |  |  | 1,754,902 |  |  |  | 1,687,355 |  |  |  | 1,630,841 |  |  |  | 1,629,010 |
Total deposits |  |  | 2,633,246 |  |  |  | 2,658,293 |  |  |  | 2,602,817 |  |  |  | 2,623,368 |  |  |  | 2,681,154 |
Securities sold under agreements to repurchase |  |  | 25,172 |  |  |  | 19,366 |  |  |  | 20,532 |  |  |  | 13,338 |  |  |  | 7,221 |
Accrued interest and other liabilities |  |  | 32,242 |  |  |  | 31,218 |  |  |  | 30,701 |  |  |  | 30,125 |  |  |  | 28,409 |
Line of credit |  |  | 4,500 |  |  |  | 2,000 |  |  |  | 12,000 |  |  |  | — |  |  |  | — |
Federal Home Loan Bank advances |  |  | 140,000 |  |  |  | 175,000 |  |  |  | 195,000 |  |  |  | 340,000 |  |  |  | 290,000 |
Subordinated debentures |  |  | 45,785 |  |  |  | 47,752 |  |  |  | 47,719 |  |  |  | 49,186 |  |  |  | 49,153 |
Total liabilities |  |  | 2,880,945 |  |  |  | 2,933,629 |  |  |  | 2,908,769 |  |  |  | 3,056,017 |  |  |  | 3,055,937 |
Equity attributable to Guaranty Bancshares, Inc. |  |  | 303,300 |  |  |  | 296,226 |  |  |  | 296,862 |  |  |  | 299,700 |  |  |  | 294,984 |
Noncontrolling interest |  |  | 546 |  |  |  | 558 |  |  |  | 565 |  |  |  | 570 |  |  |  | 574 |
Total equity |  |  | 303,846 |  |  |  | 296,784 |  |  |  | 297,427 |  |  |  | 300,270 |  |  |  | 295,558 |
Total liabilities and equity |  | $ | 3,184,791 |  |  | $ | 3,230,413 |  |  | $ | 3,206,196 |  |  | $ | 3,356,287 |  |  | $ | 3,351,495 |

4

|  | Quarter Ended |
|  | 2023 |  |  | 2022 |
(dollars in thousands, except per share data) |  | December 31 |  |  | September 30 |  |  | June 30 |  |  | March 31 |  |  | December 31 |
STATEMENTS OF EARNINGS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 40,796 |  |  | $ | 39,818 |  |  | $ | 38,734 |  |  | $ | 37,144 |  |  | $ | 35,720 |
Interest expense |  |  | 16,983 |  |  |  | 16,516 |  |  |  | 14,031 |  |  |  | 11,982 |  |  |  | 7,362 |
Net interest income |  |  | 23,813 |  |  |  | 23,302 |  |  |  | 24,703 |  |  |  | 25,162 |  |  |  | 28,358 |
Provision for credit losses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,800 |
Net interest income after provision for credit losses |  |  | 23,813 |  |  |  | 23,302 |  |  |  | 24,703 |  |  |  | 25,162 |  |  |  | 25,558 |
Noninterest income |  |  | 4,796 |  |  |  | 4,939 |  |  |  | 7,873 |  |  |  | 4,905 |  |  |  | 5,122 |
Noninterest expense |  |  | 21,402 |  |  |  | 20,514 |  |  |  | 20,471 |  |  |  | 19,967 |  |  |  | 20,897 |
Income before income taxes |  |  | 7,207 |  |  |  | 7,727 |  |  |  | 12,105 |  |  |  | 10,100 |  |  |  | 9,783 |
Income tax provision |  |  | 1,341 |  |  |  | 1,437 |  |  |  | 2,529 |  |  |  | 1,823 |  |  |  | 1,764 |
Net earnings |  | $ | 5,866 |  |  | $ | 6,290 |  |  | $ | 9,576 |  |  | $ | 8,277 |  |  | $ | 8,019 |
Net loss attributable to noncontrolling interest |  |  | 12 |  |  |  | 7 |  |  |  | 5 |  |  |  | 4 |  |  |  | 3 |
Net earnings attributable to Guaranty Bancshares, Inc. |  | $ | 5,878 |  |  | $ | 6,297 |  |  | $ | 9,581 |  |  | $ | 8,281 |  |  | $ | 8,022 |
PER COMMON SHARE DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings per common share, basic |  | $ | 0.51 |  |  | $ | 0.54 |  |  | $ | 0.82 |  |  | $ | 0.69 |  |  | $ | 0.67 |
Earnings per common share, diluted |  |  | 0.51 |  |  |  | 0.54 |  |  |  | 0.81 |  |  |  | 0.69 |  |  |  | 0.67 |
Cash dividends per common share |  |  | 0.23 |  |  |  | 0.23 |  |  |  | 0.23 |  |  |  | 0.23 |  |  |  | 0.22 |
Book value per common share - end of quarter |  |  | 26.28 |  |  |  | 25.64 |  |  |  | 25.58 |  |  |  | 25.13 |  |  |  | 24.70 |
Tangible book value per common share - end of quarter(1) |  |  | 23.37 |  |  |  | 22.72 |  |  |  | 22.67 |  |  |  | 22.29 |  |  |  | 21.85 |
Common shares outstanding - end of quarter(4) |  |  | 11,540,644 |  |  |  | 11,554,094 |  |  |  | 11,603,167 |  |  |  | 11,925,357 |  |  |  | 11,941,672 |
Weighted-average common shares outstanding, basic |  |  | 11,536,878 |  |  |  | 11,568,897 |  |  |  | 11,735,475 |  |  |  | 11,939,593 |  |  |  | 11,938,973 |
Weighted-average common shares outstanding, diluted |  |  | 11,589,165 |  |  |  | 11,619,342 |  |  |  | 11,756,512 |  |  |  | 12,012,004 |  |  |  | 12,048,475 |
PERFORMANCE RATIOS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets (annualized) |  |  | 0.73 | % |  |  | 0.78 | % |  |  | 1.17 | % |  |  | 1.01 | % |  |  | 0.95 | %
Return on average equity (annualized) |  |  | 7.93 |  |  |  | 8.43 |  |  |  | 12.87 |  |  |  | 11.18 |  |  |  | 10.88 |
Net interest margin, fully taxable equivalent (annualized)(2) |  |  | 3.11 |  |  |  | 3.02 |  |  |  | 3.19 |  |  |  | 3.24 |  |  |  | 3.57 |
Efficiency ratio(3) |  |  | 74.81 |  |  |  | 72.64 |  |  |  | 62.84 |  |  |  | 66.41 |  |  |  | 62.42 |
(1) See Reconciliation of non-GAAP Financial Measures table. |
(2) Net interest margin on a 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%. |
(3) 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. |
(4) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options. |

5

|  | For the Years Ended |  |  |  |  |  |  |
|  | December 31, |  |  |  |  |  |  |
(dollars in thousands, except per share data) |  | 2023 |  |  | 2022 |  |  |  |  |  |  |
INCOME STATEMENTS |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 156,492 |  |  | $ | 123,209 |  |  |  |  |  |  |
Interest expense |  |  | 59,512 |  |  |  | 15,380 |  |  |  |  |  |  |
Net interest income |  |  | 96,980 |  |  |  | 107,829 |  |  |  |  |  |  |
Provision for loan losses |  |  | — |  |  |  | 2,150 |  |  |  |  |  |  |
Net interest income after provision for loan losses |  |  | 96,980 |  |  |  | 105,679 |  |  |  |  |  |  |
Noninterest income |  |  | 22,513 |  |  |  | 23,485 |  |  |  |  |  |  |
Noninterest expense |  |  | 82,354 |  |  |  | 79,907 |  |  |  |  |  |  |
Income before income taxes |  |  | 37,139 |  |  |  | 49,257 |  |  |  |  |  |  |
Income tax provision |  |  | 7,130 |  |  |  | 8,834 |  |  |  |  |  |  |
Net earnings |  | $ | 30,009 |  |  | $ | 40,423 |  |  |  |  |  |  |
Net loss attributable to noncontrolling interest |  |  | 28 |  |  |  | 24 |  |  |  |  |  |  |
Net earnings attributable to Guaranty Bancshares, Inc. |  | $ | 30,037 |  |  | $ | 40,447 |  |  |  |  |  |  |
PER COMMON SHARE DATA |  |  |  |  |  |  |  |  |  |  |  |
Earnings per common share, basic |  | $ | 2.57 |  |  | $ | 3.38 |  |  |  |  |  |  |
Earnings per common share, diluted |  |  | 2.56 |  |  |  | 3.34 |  |  |  |  |  |  |
Cash dividends per common share |  |  | 0.92 |  |  |  | 0.88 |  |  |  |  |  |  |
Book value per common share - end of period |  |  | 26.28 |  |  |  | 24.70 |  |  |  |  |  |  |
Tangible book value per common share - end of period(1) |  |  | 23.37 |  |  |  | 21.85 |  |  |  |  |  |  |
Common shares outstanding - end of period(4) |  |  | 11,540,644 |  |  |  | 11,941,672 |  |  |  |  |  |  |
Weighted-average common shares outstanding, basic |  |  | 11,693,761 |  |  |  | 11,980,209 |  |  |  |  |  |  |
Weighted-average common shares outstanding, diluted |  |  | 11,738,605 |  |  |  | 12,092,847 |  |  |  |  |  |  |
PERFORMANCE RATIOS |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets |  |  | 0.92 | % |  |  | 1.24 | % |  |  |  |  |  |
Return on average equity |  |  | 10.10 |  |  |  | 13.76 |  |  |  |  |  |  |
Net interest margin, fully taxable equivalent(2) |  |  | 3.15 |  |  |  | 3.54 |  |  |  |  |  |  |
Efficiency ratio(3) |  |  | 68.92 |  |  |  | 60.85 |  |  |  |  |  |  |
(1) See Reconciliation of non-GAAP Financial Measures table.
(2) Net interest margin on a 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%.
(3) 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.
(4) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options.

6

|  | As of |
|  | 2023 |  |  | 2022 |
(dollars in thousands) |  | December 31 |  |  | September 30 |  |  | June 30 |  |  | March 31 |  |  | December 31 |
LOAN PORTFOLIO COMPOSITION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 287,565 |  |  | $ | 292,410 |  |  | $ | 295,864 |  |  | $ | 295,936 |  |  | $ | 314,067 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and development |  |  | 296,639 |  |  |  | 317,484 |  |  |  | 345,127 |  |  |  | 372,203 |  |  |  | 377,135 |
Commercial real estate |  |  | 923,195 |  |  |  | 901,321 |  |  |  | 891,883 |  |  |  | 900,190 |  |  |  | 887,587 |
Farmland |  |  | 186,295 |  |  |  | 188,614 |  |  |  | 187,105 |  |  |  | 190,802 |  |  |  | 185,817 |
1-4 family residential |  |  | 514,603 |  |  |  | 504,002 |  |  |  | 496,340 |  |  |  | 499,944 |  |  |  | 493,061 |
Multi-family residential |  |  | 44,292 |  |  |  | 42,720 |  |  |  | 44,385 |  |  |  | 44,760 |  |  |  | 45,147 |
Consumer |  |  | 57,059 |  |  |  | 58,294 |  |  |  | 59,498 |  |  |  | 60,163 |  |  |  | 61,394 |
Agricultural |  |  | 12,685 |  |  |  | 13,076 |  |  |  | 13,447 |  |  |  | 13,545 |  |  |  | 13,686 |
Overdrafts |  |  | 243 |  |  |  | 328 |  |  |  | 252 |  |  |  | 270 |  |  |  | 282 |
Total loans(1)(2) |  | $ | 2,322,576 |  |  | $ | 2,318,249 |  |  | $ | 2,333,901 |  |  | $ | 2,377,813 |  |  | $ | 2,378,176 |
|  | Quarter Ended |
|  | 2023 |  |  | 2022 |
(dollars in thousands) |  | December 31 |  |  | September 30 |  |  | June 30 |  |  | March 31 |  |  | December 31 |
ALLOWANCE FOR CREDIT LOSSES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 31,140 |  |  | $ | 31,759 |  |  | $ | 31,953 |  |  | $ | 31,974 |  |  | $ | 29,235 |
Loans charged-off |  |  | (242 | ) |  |  | (644 | ) |  |  | (224 | ) |  |  | (94 | ) |  |  | (103 | )
Recoveries |  |  | 22 |  |  |  | 25 |  |  |  | 30 |  |  |  | 73 |  |  |  | 42 |
Provision for credit loss expense |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,800 |
Balance at end of period |  | $ | 30,920 |  |  | $ | 31,140 |  |  | $ | 31,759 |  |  | $ | 31,953 |  |  | $ | 31,974 |
Allowance for credit losses / period-end loans |  |  | 1.33 | % |  |  | 1.34 | % |  |  | 1.36 | % |  |  | 1.34 | % |  |  | 1.34 | %
Allowance for credit losses / nonperforming loans |  |  | 552.9 |  |  |  | 1,148.2 |  |  |  | 894.6 |  |  |  | 238.4 |  |  |  | 294.7 |
Net charge-offs / average loans (annualized) |  |  | 0.04 |  |  |  | 0.11 |  |  |  | 0.03 |  |  |  | 0.00 |  |  |  | 0.01 |
NONPERFORMING ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonaccrual loans |  | $ | 5,592 |  |  | $ | 2,712 |  |  | $ | 3,550 |  |  | $ | 13,405 |  |  | $ | 10,848 |
Other real estate owned |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 38 |  |  |  | 38 |
Repossessed assets owned |  |  | 234 |  |  |  | 250 |  |  |  | — |  |  |  | — |  |  |  | — |
Total nonperforming assets |  | $ | 5,826 |  |  | $ | 2,962 |  |  | $ | 3,550 |  |  | $ | 13,443 |  |  | $ | 10,886 |
Nonperforming assets as a percentage of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total loans(1)(2) |  |  | 0.25 | % |  |  | 0.13 | % |  |  | 0.15 | % |  |  | 0.57 | % |  |  | 0.46 | %
Total assets |  |  | 0.18 |  |  |  | 0.09 |  |  |  | 0.11 |  |  |  | 0.40 |  |  |  | 0.32 |
(1) Excludes outstanding balances of loans held for sale of $976,000, $2.5 million, $795,000, $1.3 million, and $3.2 million as of December 31, September 30, June 30 and March 31, 2023, and December 31, 2022, respectively. |
(2) Excludes deferred loan fees of $775,000, $946,000, $1.3 million, $1.6 million, and $2.0 million as of December 31, September 30, June 30 and March 31, 2023, and December 31, 2022, respectively. |

7

|  | Quarter Ended |
|  | 2023 |  |  | 2022 |
(dollars in thousands) |  | December 31 |  |  | September 30 |  |  | June 30 |  |  | March 31 |  |  | December 31 |
NONINTEREST INCOME |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service charges |  | $ | 1,123 |  |  | $ | 1,131 |  |  | $ | 1,056 |  |  | $ | 1,077 |  |  | $ | 1,096 |
Net realized gain (loss) on securities transactions |  |  | — |  |  |  | — |  |  |  | (322 | ) |  |  | 93 |  |  |  | 172 |
Net realized gain on sale of loans |  |  | 196 |  |  |  | 218 |  |  |  | 473 |  |  |  | 314 |  |  |  | 310 |
Fiduciary and custodial income |  |  | 624 |  |  |  | 637 |  |  |  | 630 |  |  |  | 638 |  |  |  | 642 |
Bank-owned life insurance income |  |  | 249 |  |  |  | 267 |  |  |  | 211 |  |  |  | 214 |  |  |  | 209 |
Merchant and debit card fees |  |  | 1,760 |  |  |  | 1,752 |  |  |  | 2,121 |  |  |  | 1,674 |  |  |  | 1,711 |
Loan processing fee income |  |  | 116 |  |  |  | 128 |  |  |  | 142 |  |  |  | 134 |  |  |  | 150 |
Mortgage fee income |  |  | 30 |  |  |  | 46 |  |  |  | 50 |  |  |  | 68 |  |  |  | 81 |
Other noninterest income |  |  | 698 |  |  |  | 760 |  |  |  | 3,512 |  |  |  | 693 |  |  |  | 751 |
Total noninterest income |  | $ | 4,796 |  |  | $ | 4,939 |  |  | $ | 7,873 |  |  | $ | 4,905 |  |  | $ | 5,122 |
NONINTEREST EXPENSE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Employee compensation and benefits |  | $ | 12,715 |  |  | $ | 11,944 |  |  | $ | 11,939 |  |  | $ | 12,264 |  |  | $ | 12,364 |
Occupancy expenses |  |  | 2,757 |  |  |  | 2,960 |  |  |  | 2,754 |  |  |  | 2,830 |  |  |  | 2,770 |
Legal and professional fees |  |  | 954 |  |  |  | 902 |  |  |  | 985 |  |  |  | 583 |  |  |  | 779 |
Software and technology |  |  | 1,740 |  |  |  | 1,490 |  |  |  | 1,531 |  |  |  | 1,396 |  |  |  | 1,525 |
Amortization |  |  | 145 |  |  |  | 147 |  |  |  | 149 |  |  |  | 161 |  |  |  | 161 |
Director and committee fees |  |  | 186 |  |  |  | 192 |  |  |  | 201 |  |  |  | 199 |  |  |  | 199 |
Advertising and promotions |  |  | 352 |  |  |  | 288 |  |  |  | 269 |  |  |  | 267 |  |  |  | 488 |
ATM and debit card expense |  |  | 763 |  |  |  | 803 |  |  |  | 739 |  |  |  | 599 |  |  |  | 740 |
Telecommunication expense |  |  | 175 |  |  |  | 178 |  |  |  | 171 |  |  |  | 183 |  |  |  | 193 |
FDIC insurance assessment fees |  |  | 321 |  |  |  | 363 |  |  |  | 522 |  |  |  | 301 |  |  |  | 359 |
Other noninterest expense |  |  | 1,294 |  |  |  | 1,247 |  |  |  | 1,211 |  |  |  | 1,184 |  |  |  | 1,319 |
Total noninterest expense |  | $ | 21,402 |  |  | $ | 20,514 |  |  | $ | 20,471 |  |  | $ | 19,967 |  |  | $ | 20,897 |

8

|  | Quarter Ended December 31, |
|  | 2023 |  |  | 2022 |
(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) |  | $ | 2,329,227 |  |  | $ | 35,573 |  |  |  | 6.06 | % |  | $ | 2,305,688 |  |  | $ | 30,189 |  |  |  | 5.19 | %
Securities available for sale |  |  | 187,119 |  |  |  | 1,540 |  |  |  | 3.27 |  |  |  | 202,829 |  |  |  | 1,478 |  |  |  | 2.89 |
Securities held to maturity |  |  | 406,553 |  |  |  | 2,619 |  |  |  | 2.56 |  |  |  | 574,951 |  |  |  | 3,222 |  |  |  | 2.22 |
Nonmarketable equity securities |  |  | 26,314 |  |  |  | 264 |  |  |  | 3.98 |  |  |  | 24,291 |  |  |  | 377 |  |  |  | 6.16 |
Interest-bearing deposits in other banks |  |  | 56,207 |  |  |  | 800 |  |  |  | 5.65 |  |  |  | 49,422 |  |  |  | 454 |  |  |  | 3.64 |
Total interest-earning assets |  |  | 3,005,420 |  |  |  | 40,796 |  |  |  | 5.39 |  |  |  | 3,157,181 |  |  |  | 35,720 |  |  |  | 4.49 |
Allowance for credit losses |  |  | (30,996 | ) |  |  |  |  |  |  |  |  | (29,634 | ) |  |  |  |  |  |
Noninterest-earning assets |  |  | 223,204 |  |  |  |  |  |  |  |  |  | 218,811 |  |  |  |  |  |  |
Total assets |  | $ | 3,197,628 |  |  |  |  |  |  |  |  | $ | 3,346,358 |  |  |  |  |  |  |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits |  | $ | 1,788,863 |  |  | $ | 14,311 |  |  |  | 3.17 | % |  | $ | 1,627,442 |  |  | $ | 4,433 |  |  |  | 1.08 | %
Advances from FHLB and fed funds purchased |  |  | 140,761 |  |  |  | 1,915 |  |  |  | 5.40 |  |  |  | 240,489 |  |  |  | 2,408 |  |  |  | 3.97 |
Line of credit |  |  | 4,255 |  |  |  | 95 |  |  |  | 8.86 |  |  |  | — |  |  |  | — |  |  |  | — |
Subordinated debt |  |  | 46,438 |  |  |  | 534 |  |  |  | 4.56 |  |  |  | 49,806 |  |  |  | 514 |  |  |  | 4.09 |
Securities sold under agreements to repurchase |  |  | 23,860 |  |  |  | 128 |  |  |  | 2.13 |  |  |  | 7,634 |  |  |  | 7 |  |  |  | 0.36 |
Total interest-bearing liabilities |  |  | 2,004,177 |  |  |  | 16,983 |  |  |  | 3.36 |  |  |  | 1,925,371 |  |  |  | 7,362 |  |  |  | 1.52 |
Noninterest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  |  | 865,817 |  |  |  |  |  |  |  |  |  | 1,102,016 |  |  |  |  |  |  |
Accrued interest and other liabilities |  |  | 33,496 |  |  |  |  |  |  |  |  |  | 26,500 |  |  |  |  |  |  |
Total noninterest-bearing liabilities |  |  | 899,313 |  |  |  |  |  |  |  |  |  | 1,128,516 |  |  |  |  |  |  |
Equity |  |  | 294,138 |  |  |  |  |  |  |  |  |  | 292,471 |  |  |  |  |  |  |
Total liabilities and equity |  | $ | 3,197,628 |  |  |  |  |  |  |  |  | $ | 3,346,358 |  |  |  |  |  |  |
Net interest rate spread(2) |  |  |  |  |  |  |  |  | 2.03 | % |  |  |  |  |  |  |  |  | 2.97 | %
Net interest income |  |  |  |  | $ | 23,813 |  |  |  |  |  |  |  |  | $ | 28,358 |  |  |  |
Net interest margin(3) |  |  |  |  |  |  |  |  | 3.14 | % |  |  |  |  |  |  |  |  | 3.56 | %
Net interest margin, fully taxable equivalent(4) |  |  |  |  |  |  |  |  | 3.11 | % |  |  |  |  |  |  |  |  | 3.57 | %
(1) Includes average outstanding balances of loans held for sale of $799,000 and $1.5 million for the quarter ended December 31, 2023 and 2022, 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 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%. |

9

|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |
(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) |  | $ | 2,352,154 |  |  | $ | 136,086 |  |  |  | 5.79 | % |  | $ | 2,126,810 |  |  | $ | 104,503 |  |  |  | 4.91 | %
Securities available for sale |  |  | 182,277 |  |  |  | 5,159 |  |  |  | 2.83 |  |  |  | 287,764 |  |  |  | 5,808 |  |  |  | 2.02 |
Securities held to maturity |  |  | 449,097 |  |  |  | 11,210 |  |  |  | 2.50 |  |  |  | 518,213 |  |  |  | 10,789 |  |  |  | 2.08 |
Nonmarketable equity securities |  |  | 27,371 |  |  |  | 1,288 |  |  |  | 4.71 |  |  |  | 18,791 |  |  |  | 1,246 |  |  |  | 6.63 |
Interest-bearing deposits in other banks |  |  | 51,507 |  |  |  | 2,749 |  |  |  | 5.34 |  |  |  | 121,609 |  |  |  | 863 |  |  |  | 0.71 |
Total interest-earning assets |  |  | 3,062,406 |  |  |  | 156,492 |  |  |  | 5.11 |  |  |  | 3,073,187 |  |  |  | 123,209 |  |  |  | 4.01 |
Allowance for credit losses |  |  | (31,601 | ) |  |  |  |  |  |  |  |  | (29,415 | ) |  |  |  |  |  |
Noninterest-earning assets |  |  | 220,230 |  |  |  |  |  |  |  |  |  | 216,812 |  |  |  |  |  |  |
Total assets |  | $ | 3,251,035 |  |  |  |  |  |  |  |  | $ | 3,260,584 |  |  |  |  |  |  |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits |  | $ | 1,698,758 |  |  | $ | 44,981 |  |  |  | 2.65 | % |  | $ | 1,670,287 |  |  | $ | 9,753 |  |  |  | 0.58 | %
Advances from FHLB and fed funds purchased |  |  | 226,214 |  |  |  | 11,626 |  |  |  | 5.14 |  |  |  | 132,764 |  |  |  | 3,855 |  |  |  | 2.90 |
Line of credit |  |  | 4,168 |  |  |  | 363 |  |  |  | 8.71 |  |  |  | — |  |  |  | 34 |  |  |  | — |
Subordinated debt |  |  | 47,873 |  |  |  | 2,143 |  |  |  | 4.48 |  |  |  | 46,977 |  |  |  | 1,722 |  |  |  | 3.67 |
Securities sold under agreements to repurchase |  |  | 20,635 |  |  |  | 399 |  |  |  | 1.93 |  |  |  | 8,596 |  |  |  | 16 |  |  |  | 0.19 |
Total interest-bearing liabilities |  |  | 1,997,648 |  |  |  | 59,512 |  |  |  | 2.98 |  |  |  | 1,858,624 |  |  |  | 15,380 |  |  |  | 0.83 |
Noninterest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  |  | 924,945 |  |  |  |  |  |  |  |  |  | 1,082,513 |  |  |  |  |  |  |
Accrued interest and other liabilities |  |  | 30,924 |  |  |  |  |  |  |  |  |  | 25,537 |  |  |  |  |  |  |
Total noninterest-bearing liabilities |  |  | 955,869 |  |  |  |  |  |  |  |  |  | 1,108,050 |  |  |  |  |  |  |
Equity |  |  | 297,518 |  |  |  |  |  |  |  |  |  | 293,910 |  |  |  |  |  |  |
Total liabilities and equity |  | $ | 3,251,035 |  |  |  |  |  |  |  |  | $ | 3,260,584 |  |  |  |  |  |  |
Net interest rate spread(2) |  |  |  |  |  |  |  |  | 2.13 | % |  |  |  |  |  |  |  |  | 3.18 | %
Net interest income |  |  |  |  | $ | 96,980 |  |  |  |  |  |  |  |  | $ | 107,829 |  |  |  |
Net interest margin(3) |  |  |  |  |  |  |  |  | 3.17 | % |  |  |  |  |  |  |  |  | 3.51 | %
Net interest margin, fully taxable equivalent(4) |  |  |  |  |  |  |  |  | 3.15 | % |  |  |  |  |  |  |  |  | 3.54 | %
(1) Includes average outstanding balances of loans held for sale of $1.2 million and $2.4 million for the years ended December 31, 2023 and 2022, 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 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%. |

10

NON-GAAP RECONCILING TABLES

Tangible Book Value per Common Share

|  | As of |
|  | 2023 |  |  | 2022 |
(dollars in thousands, except per share data) |  | December 31 |  |  | September 30 |  |  | June 30 |  |  | March 31 |  |  | December 31 |
Equity attributable to Guaranty Bancshares, Inc. |  | $ | 303,300 |  |  | $ | 296,226 |  |  | $ | 296,862 |  |  | $ | 299,700 |  |  | $ | 294,984 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | (32,160 | ) |  |  | (32,160 | ) |  |  | (32,160 | ) |  |  | (32,160 | ) |  |  | (32,160 | )
Core deposit intangible, net |  |  | (1,418 | ) |  |  | (1,524 | ) |  |  | (1,633 | ) |  |  | (1,746 | ) |  |  | (1,859 | )
Total tangible common equity attributable to Guaranty Bancshares, Inc. |  | $ | 269,722 |  |  | $ | 262,542 |  |  | $ | 263,069 |  |  | $ | 265,794 |  |  | $ | 260,965 |
Common shares outstanding(1) |  |  | 11,540,644 |  |  |  | 11,554,094 |  |  |  | 11,603,167 |  |  |  | 11,925,357 |  |  |  | 11,941,672 |
Book value per common share |  | $ | 26.28 |  |  | $ | 25.64 |  |  | $ | 25.58 |  |  | $ | 25.13 |  |  | $ | 24.70 |
Tangible book value per common share(1) |  |  | 23.37 |  |  |  | 22.72 |  |  |  | 22.67 |  |  |  | 22.29 |  |  |  | 21.85 |

(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 % of Total Equity

(dollars in thousands) |  | December 31, 2023 |
Total equity(1) |  | $ | 303,846 |
Less: net unrealized loss on HTM securities, tax effected |  |  | (23,451 | )
Total equity, including net unrealized loss on AFS and HTM securities |  | $ | 280,395 |
Net unrealized loss on AFS securities, tax effected |  |  | 15,156 |
Net unrealized loss on HTM securities, tax effected |  |  | 23,451 |
Net unrealized loss on AFS and HTM securities, tax effected |  | $ | 38,607 |
Net unrealized loss on securities as % of total equity(1) |  |  | 12.7 | %
Total equity before impact of unrealized losses |  | $ | 319,002 |
Net unrealized loss on securities as % of total equity before impact of unrealized losses |  |  | 12.1 | %
Total average assets |  | $ | 3,197,628 |
Total equity to average assets |  |  | 9.5 | %
Total equity, adjusted for tax effected net unrealized loss, to average assets |  |  | 8.8 | %
(1) Includes the net unrealized loss on AFS securities, tax effected, of $15,156. |  |  |

Cost of Total Deposits

|  | Quarter Ended |
(dollars in thousands) |  | December 31, 2023 |  |  | September 30, 2023 |  |  | December 31, 2022 |
Total average interest-bearing deposits |  | $ | 1,788,863 |  |  | $ | 1,726,218 |  |  | $ | 1,627,442 |
Adjustments: |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  |  | 865,817 |  |  |  | 888,772 |  |  |  | 1,102,016 |
Total average deposits |  | $ | 2,654,680 |  |  | $ | 2,614,990 |  |  | $ | 2,729,458 |
Total deposit-related interest expense |  | $ | 14,311 |  |  | $ | 13,069 |  |  | $ | 4,433 |
Average cost of interest-bearing deposits |  |  | 3.17 | % |  |  | 3.00 | % |  |  | 1.08 | %
Average cost of total deposits |  |  | 2.14 |  |  |  | 1.98 |  |  |  | 0.64 |

11

About Non-GAAP Financial Measures

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

12

Conference Call Information

The Company will hold a conference call to discuss fourth quarter 2023 financial results on Tuesday, January 16, 2024 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, 2024 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, 2023, Guaranty Bancshares, Inc. had total assets of $3.2 billion, total loans of $2.3 billion and total deposits of $2.6 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, other risks and uncertainties listed from time to time in our reports and documents filed with the Securities and Exchange Commission ("SEC"). 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 Information:
Shalene Jacobson Executive Vice President and Chief Financial Officer Guaranty Bancshares, Inc. (888) 572-9881
investors@gnty.com

13