Guaranty Bancshares reports Q4 core EPS $1.05, consensus 86c

Reports Q4 tangible book value per share $21.85. "Despite the economic, inflationary and geopolitical challenges of 2022, we had strong earnings for the year. Fourth quarter net income was $8.0 million, which included a $2.8 million provision for credit losses to adjust for economic forecasts in accordance with our CECL methodology. We don’t foresee significant losses at this time but economists are overwhelmingly predicting an economic recession in 2023 so there is strong evidence to support the added provision. We had a very good 2022 with total net income of $40.4 million for the year. Loans increased $112.1 million in the fourth quarter and $470.1 million for the year. Deposits decreased $109.4 million in the fourth quarter but grew $10.3 million for the year. The decline in deposits during the fourth quarter came primarily from our newer, urban growth markets while our legacy East Texas market grew deposits slightly during the quarter, continuing to illustrate the core deposit base we have in that market. Cost of deposits increased in the fourth quarter as the Bank raised interest rates to retain existing depositors and remain competitive. However, new and renewed loans are being booked at higher rates and we’ll continue to see the benefits of floating and variable rate loans going forward, although some margin compression is expected in 2023. We maintain effective asset and liability management, low levels of nonperforming assets, good core deposits and a solid earnings stream that should continue to benefit our stakeholders," commented Ty Abston, the Company’s Chairman and Chief Executive Officer.