About Guaranty Bancshares

Guaranty Bancshares, Inc. operates as the bank holding company for Guaranty Bank & Trust, N.A. that provides a wide range of relationship-driven commercial and consumer banking, as well as trust and wealth management products and services that are tailored to meet the needs of small- and medium-sized businesses, professionals, and individuals. The bank operates full service banking locations in East Texas, Dallas/Fort Worth, Houston and Central Texas regions of the state. The company has developed a network of banking locations strategically positioned in separate and distinct communities. Growth and Expansion Strategies The company’s strategic plan is to be a leading Texas bank holding company with a commitment to operate as a community bank as the company continues to execute its expansion strategy. The company’s expansion strategy is to generate shareholder value through maintaining focus on organic growth; pursuing strategic acquisitions; establishing de novo banking locations; increasing earnings streams; proven successful execution of growth strategies; scalable platform; disciplined credit culture and robust risk management systems; brand strength and reputation; and stable core deposit base. Banking Services Lending Activities The company offers a variety of loans, including commercial lines of credit, working capital loans, commercial real estate-backed loans (including loans secured by owner occupied commercial properties), term loans, equipment financing, acquisition, expansion and development loans, borrowing base loans, real estate construction loans, homebuilder loans, letters of credit and other loan products to small- and medium-sized businesses, real estate developers, mortgage lenders, manufacturing and industrial companies and other businesses. The company also offers various consumer loans to individuals and professionals, including residential real estate loans, home equity loans, installment loans, unsecured and secured personal lines of credit, and standby letters of credit. Lending activities originate from the efforts of the company’s bankers, with an emphasis on lending to individuals, professionals, small- to medium-sized businesses and commercial companies located in the company’s market areas. Substantially all of the company’s loans are made to borrowers located or operating in the company’s primary market areas with whom the company has ongoing relationships across various product lines. The limited number of loans secured by properties located in out-of-market areas have been made strictly to borrowers who are well-kown to the company. Deposit Activities The company’s deposits serve as the primary funding source for lending, investing and other general banking purposes. The company provides a full range of deposit products and services, including a variety of checking and savings accounts, certificates of deposit, money market accounts, debit cards, remote deposit capture, online banking, mobile banking, e-Statements, bank-by-mail and direct deposit services. The company also offers business accounts and cash management services, including business checking and savings accounts and treasury management services. The company solicits deposits through its relationship-driven team of dedicated and accessible bankers and through community focused marketing. The company also seeks to cross-sell deposit products at loan origination. Guaranty Bank & Trust Wealth Management Group The company delivers a comprehensive suite of trust services through Guaranty Bank & Trust Wealth Management Group, a division of the bank. The company provides traditional trustee, custodial and escrow services for institutional and individual accounts, including corporate escrow accounts, serving as custodian for self-directed individual retirement accounts and other retirement accounts. In addition, the company offers clients comprehensive investment management solutions whereby the company manages all or a portion of a client’s investment portfolio on a discretionary basis. Finally, the company provides retirement plan services, such as 401(k) programs, through a national vendor. Other Products and Services The company offers banking products and services that are attractively priced with a focus on customer convenience and accessibility. The company offers a full suite of online banking services, including access to account balances, online transfers, online bill payment and electronic delivery of customer statements, as well as ATMs, and banking by telephone, mail and personal appointment. The company also offers debit cards, night depository, direct deposit, cashier’s checks, and letters of credit, as well as treasury management services, including wire transfer services, positive pay, remote deposit capture and automated clearinghouse services. Investments The company separates its portfolio into two categories: short-term investments with maturities less than one year, including federal funds sold; and investments with maturities exceeding one year (the effective duration is approximately 3.99 years as of December 31, 2022), all of which are classified as available for sale and can be used for pledging on public deposits, selling under repurchase agreements and meeting unforeseen liquidity needs. Markets The company considers its market regions to be East Texas, Central Texas, the Dallas/Fort Worth MSA and the Houston MSA. The company serves these communities from its corporate headquarters in Addison, Texas, the company’s operational headquarters in Mount Pleasant, Texas and through a network of banking locations within East Texas, banking locations in Central Texas, banking locations in the Dallas/Fort Worth metroplex and banking locations in the Houston metroplex. As part of the company’s strategic plan, the company intends to further diversify its markets through entry into other large metropolitan markets in Texas and/or continued expansion in the company’s existing newer markets. Supervision and Regulation As a bank holding company, the company is subject to regulation under the Bank Holding Company Act of 1956, or the BHC Act, and to supervision, examination and enforcement by the Federal Reserve. The bank is subject to various requirements and restrictions under the laws of the United States, and to regulation, supervision and examination by the OCC. The bank is also an insured depository institution and, therefore, subject to regulation by the FDIC, although the OCC is the bank’s primary federal regulator. Transactions between the bank and its nonbanking subsidiaries and/or affiliates, including the company, are subject to Section 23A and 23B of the Federal Reserve Act and Regulation. Affiliate transactions are also subject to Section 23B of the Federal Reserve Act which generally requires that certain transactions between the bank and its affiliates be on terms substantially the same, or at least as favorable to the bank, as those prevailing at the time for comparable transactions with or involving other nonaffiliated persons. The bank received a ‘satisfactory’ rating in its most recent CRA examination. The bank is subject to numerous laws and regulations intended to protect consumers in transactions with the bank. These laws include, among others, laws regarding unfair, deceptive and abusive acts and practices, usury laws, and other federal consumer protection statutes. These federal laws include the Electronic Fund Transfer Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Real Estate Procedures Act of 1974, the S.A.F.E. Mortgage Licensing Act of 2008, the Truth in Lending Act and the Truth in Savings Act, among others. Under federal law, including the Bank Secrecy Act, or BSA, the USA PATRIOT Act of 2001 and the Anti-Money Laundering Act of 2020, certain financial institutions, such as the bank, must maintain anti-money laundering programs that include established internal policies, procedures and controls; a designated BSA officer; an ongoing employee training program; and testing of the program by an independent audit function. The FHLB system, of which the bank is a member, consists of 12 regional FHLBs governed and regulated by the Federal Housing Finance Board, or FHFB. The bank is also required to own a certain amount of capital stock in the FHLB. History Guaranty Bancshares, Inc. was founded in 1913. The company was incorporated in 1990.