3 4 2024 was a good year for our Company. Throughout the year, we continued to strengthen our balance sheet and improve margins and earnings in anticipation of opportunities for loan and deposit growth going forward. As described in last year’s annual report, a strategic goal for 2024 was to remain cautious and continue to gauge the effects on the economy of the rapid rise in interest rates, borrower credit trends, and potential political uncertainty in the U.S. and around the world. We were committed to rebuilding our net interest margin that was negatively impacted by the same rise in interest rates over the prior two years. I am pleased to report that we ended 2024 in a strong position for 2025 and beyond. There was a significant improvement in our net interest income helping to boost our earnings, while we experienced excellent asset quality, good liquidity, and a strong capital position. All of these factors position our Company well as we look at strategies to further build shareholder value for the near and longer term future. As we move into 2025, we are half-way through our five-year strategic plan and believe we are on target to achieve the goals we set out at its commencement in 2023. We consistently look at where the Company has been, where we are currently, and evaluate the best strategies going forward taking into consideration our historical and current strengths, as well as the external financial industry and macro-economic trends. This is the same strategic planning process we’ve followed over the last 20 years, in five-year increments. But first, I want to report on the results of 2024 and highlight the strong position we find ourselves in at the end of the year in almost every key financial metric. Our strong balance sheet and solid earnings stream allows us the flexibility of looking at multiple paths forward as we think about the future. I will discuss our strategic planning process and updates to our five-year strategic plan later in the letter. Highlights of the past year’s results are discussed on the next page. Although 2024 was a good year for our Company, we have prospects for an even stronger year in 2025 as our forward earnings projections continue to show upward momentum. We announced earnings per share in the 4th quarter of $0.87 cents ($2.74 for the year), which represents a significant improvement in our earnings per share as compared to the first 3 quarters, and we believe it is sustainable for 2025. When the market recognizes this value and the price of our stock is near what we believe to be fair market value, we will be more passive in our share buyback activity. However, when we see a disconnect in the market price of our shares versus what we believe is our true intrinsic value, we have the excess capital to step in and aggressively buy back shares at the discounted price. This strategy has served us well over the years and will remain a significant strategy in 2025. GROUNDED IN STABILITY, FOCUSED ON GROWTH GROUNDED IN STABILITY, FOCUSED ON GROWTH DEAR SHAREHOLDERS, DEAR SHAREHOLDERS, 2024 PERFORMANCE HIGHLIGHTS: 2024 PERFORMANCE HIGHLIGHTS: Net Income: We are pleased to report net income of $31.5 million for the fiscal year, representing a year-over-year increase of 5.0%. This growth reflects both strong operational performance and effective cost management. Earnings Per Share (EPS): Diluted EPS for 2024 was $2.74, an increase of 7.0% compared to the previous year, reflecting our commitment to delivering value to our shareholders. Return on Average Equity (ROAE): We achieved a robust ROAE of 10.3%, reinforcing our ability to generate value for our shareholders while maintaining strong financial discipline. Loan and Deposit Outcomes: We intentionally reduced our loan portfolio throughout the year by enabling higher-risk transactional borrowers to seek refinancing with other lenders and to create room in various loan segments for our strong relationship borrowers when they need funding. Our total deposits grew by 2.2%, which reflects our commitment to supporting our customers' financial needs and contributing to the economic vitality of the regions we serve. Expansion Activities: We opened our new permanent location in downtown Georgetown with a very strong market reception. A Letter From Our CEO A Letter From Our CEO 5 6 TY ABSTON Chairman of the Board & Chief Executive Officer So far, our stock price has responded positively to our strong fourth quarter 2024 earnings announcement, with a closing price of $42.34 in early February, a record high price for our stock as of that time. We paid a dividend of $0.96 cents per share during the year, further enhancing this positive return. increasing, on a split adjusted basis, from $0.04 cents per share to the current $0.96 cents per share in 2024. We continue to pay dividends of about 30% of annual earnings. Even with our ability to increase our annual dividend payouts, we still retain a healthy amount, approximately 70%, of our earnings in capital to fund growth and balance sheet strength. Our increasing dividend return over the years has been an important part of total return for our shareholders. As we look to the future and make strategic decisions about our best path forward, we will keep the same key aspects of our past successes in mind. Those strategies include developing on-going solutions around how we maintain our Company’s great culture, serve our customers in the best way possible, make available the latest technology that current and potential customers expect and demand, and create fair returns for our shareholders. Doing all of this concurrently has never been easy and certainly won’t become easier in the future. Artificial intelligence and advanced technology will have a profound impact on the banking industry in the coming years. To be successful and maintain a competitive edge, the years ahead will require significant continued vision and thoughtful leadership in two basic areas over the next decade: technology and people. Banks will have to make sizable investments in both of these inputs, which will require more scale to fund while still creating a fair return for shareholders. The key for us is to chart a path forward and successfully execute on a plan that addresses these scale challenges, while at the same time capitalizing on the opportunities that will certainly be presented. This is the basis for our planning for the current year. Additionally, we will continue to look for expansion opportunities within our four regions of East Texas, Dallas- Ft. Worth, Central Texas, and Houston. We see significant future growth prospects, both organic and through acquisitions, within our current Texas footprint and will remain vigilant in looking for the right opportunities to capitalize on this potential. Furthermore, we continue to focus on enhancements of our suite of financial products, including innovative lending solutions, deposit offerings, and wealth management services. 2024 was the thirty-eighth consecutive year that we paid a dividend to shareholders, These efforts reflect our ongoing commitment to meeting the evolving financial needs of our customers and positioning Guaranty as a bank of choice in our markets. As we look toward 2025 and beyond, we are confident in our ability to execute on our strategic objectives as a Company. We remain focused on driving profitable growth, enhancing our customer’s experience, and maintaining a strong financial foundation. Our commitment to operational excellence, responsible risk management, and innovation will ensure that we are well-positioned to navigate future challenges and seize new opportunities. Guaranty’s brand is strong, well known and respected across Texas, and we are positioned in the right geographic regions, representing approximately 85% of the population of the state. The Texas success story continues to attract people and companies into the state and our growth prospects remain strong. In closing, I would like to express my sincere appreciation for your continued trust and support of Guaranty Bancshares, Inc. Our achievements in 2024 would not have been possible without the dedication of our talented employees, the loyalty of our customers, and the confidence of our shareholders. We look forward to continuing this journey together and are excited for the future that lies ahead. CENTRAL TEXAS CENTRAL TEXAS DEEP ROOTS DEEP ROOTS ACROSS TEXAS ACROSS TEXAS EAST TEXAS EAST TEXAS Austin Austin Bryan Bryan College Station (2) College Station (2) Georgetown (2) Georgetown (2) Lakeway Lakeway HOUSTON HOUSTON Conroe Conroe Houston Houston Houston Galleria Houston Galleria Katy Katy DFW DFW Addison Addison Dallas Dallas Denton (2) Denton (2) Fort Worth Fort Worth Rockwall Rockwall Royse City Royse City Bogata Bogata Commerce Commerce Hallsville Hallsville Longview Longview Mt Pleasant (2) Mt Pleasant (2) Mt Vernon Mt Vernon New Boston New Boston Paris (2) Paris (2) Pittsburg Pittsburg Sulphur Springs Sulphur Springs Texarkana (3) Texarkana (3) 7 8 GROWING STRONG GROWING STRONG COMMUNITIES COMMUNITIES , TOTAL TOTAL DONATIONS DONATIONS , 195 ORGANIZATIONS SERVED 195 ORGANIZATIONS SERVED VOLUNTEER VOLUNTEER HOURS HOURS , GRANT GRANT MONEY MONEY MATCH FUNDS RECEIVED FROM FEDERAL HOME MATCH FUNDS RECEIVED FROM FEDERAL HOME LOAN BANK OF DALLAS. IN TOTAL, GUARANTY LOAN BANK OF DALLAS. IN TOTAL, GUARANTY DONATED $78,000 TO FOUR ORGANIZATIONS DONATED $78,000 TO FOUR ORGANIZATIONS CONDUCTED FRAUD & CONDUCTED FRAUD & FINANCIAL SEMINARS FINANCIAL SEMINARS FOR LOCAL LAW ENFORCEMENT, ADULT FOR LOCAL LAW ENFORCEMENT, ADULT PROTECTIVE SERVICES, AND FINANCIAL PROTECTIVE SERVICES, AND FINANCIAL INSTITUTIONS TO STRENGTHEN COMMUNITY INSTITUTIONS TO STRENGTHEN COMMUNITY FRAUD PREVENTION EFFORTS FRAUD PREVENTION EFFORTS Our mission extends beyond financial transactions – it is Our mission extends beyond financial transactions – it is about building bridges, nurturing growth, and ensuring a about building bridges, nurturing growth, and ensuring a brighter future for all. Together, let us continue to create brighter future for all. Together, let us continue to create communities where our community members and the communities where our community members and the businesses we serve grow stronger. businesses we serve grow stronger. TY ABSTON TY ABSTON WITH TEXAS A&M UNIVERSITY-TEXARKANA WITH TEXAS A&M UNIVERSITY-TEXARKANA TO TO ALLOW FULL-TIME BANK EMPLOYEES TO TAKE ALLOW FULL-TIME BANK EMPLOYEES TO TAKE COURSES WITH REDUCED TUITION PRICES COURSES WITH REDUCED TUITION PRICES ACADEMIC ACADEMIC PARTNERSHI PARTNERSHIPS PS INSPIRING PROGRESS INSPIRING PROGRESS TODAY, FOR TOMORROW TODAY, FOR TOMORROW 9 10 SONDRA CUNNINGHAM SECRETARY GUARANTY BANCSHARES, INC SHALENE JACOBSON EXECUTIVE VICE PRESIDENT & CFO GUARANTY BANCSHARES, INC BRAD DRAKE CEO DRAKE COMPANIES, LLC CHRIS ELLIOTT PRESIDENT ELLIOTT AUTO GROUP KIRK LEE PRESIDENT GUARANTY BANCSHARES, INC. MIKE NOLAN INVESTMENTS CARL JOHNSON JR. PRINCIPAL BAKER & JOHNSON, CPA TY ABSTON CHAIRMAN OF THE BOARD & CEO GUARANTY BANCSHARES, INC JEFF BROWN MANAGING PARTNER ROSEROCK RICKY BAKER MANAGING MEMBER KRB INVESTMENTS, LLC JIM BUNCH PRESIDENT & CEO BWI, INC. LEVERAGED DIGITAL AUTOMATION TO ENSURE SWIFT AND LEVERAGED DIGITAL AUTOMATION TO ENSURE SWIFT AND ACCURATE COMPLETION OF INTERNAL AND CUSTOMER ACCURATE COMPLETION OF INTERNAL AND CUSTOMER FACING PROCESSES FACING PROCESSES GUARANTY’S TOTAL RETURN FOR 2024 WAS 5.8% AFTER GUARANTY’S TOTAL RETURN FOR 2024 WAS 5.8% AFTER PAYING A DIVIDEND OF $0.96 PER SHARE (A 2.77% YIELD BASED PAYING A DIVIDEND OF $0.96 PER SHARE (A 2.77% YIELD BASED ON THE YEAR-END CLOSING PRICE) ON THE YEAR-END CLOSING PRICE) REPURCHASED 210,074 SHARES OF GNTY STOCK, IMPROVING REPURCHASED 210,074 SHARES OF GNTY STOCK, IMPROVING OVERALL SHAREHOLDER VALUE OVERALL SHAREHOLDER VALUE MOVED TO OUR PERMANENT FULL-SERVICE BANK LOCATION IN MOVED TO OUR PERMANENT FULL-SERVICE BANK LOCATION IN DOWNTOWN GEORGETOWN DOWNTOWN GEORGETOWN ASSET QUALITY CONTINUED TO BE EXCELLENT, ENDING THE ASSET QUALITY CONTINUED TO BE EXCELLENT, ENDING THE YEAR WITH NET CHARGE-OFFS TO AVERAGE LOANS OF 0.02% YEAR WITH NET CHARGE-OFFS TO AVERAGE LOANS OF 0.02% CAPITAL IS STRONG AND AVAILABLE FOR FUTURE STRATEGIC CAPITAL IS STRONG AND AVAILABLE FOR FUTURE STRATEGIC PLANS. TOTAL EQUITY TO AVERAGE ASSETS AT PLANS. TOTAL EQUITY TO AVERAGE ASSETS AT YEAR-END WAS 10.2% YEAR-END WAS 10.2% CONTINUED TO MAKE INVESTMENTS IN TECHNOLOGY SYSTEMS CONTINUED TO MAKE INVESTMENTS IN TECHNOLOGY SYSTEMS AND PEOPLE TO KEEP CUSTOMER DATA SAFE AND TO IMPROVE AND PEOPLE TO KEEP CUSTOMER DATA SAFE AND TO IMPROVE OPERATIONAL EFFICIENCIES BANK-WIDE OPERATIONAL EFFICIENCIES BANK-WIDE GUARANTY BANCSHARES GUARANTY BANCSHARES BOARD OF DIRECTORS & EXECUTIVE OFFICERS BOARD OF DIRECTORS & EXECUTIVE OFFICERS YEAR IN REVIEW YEAR IN REVIEW REACHING FOR NEW HEIGHTS REACHING FOR NEW HEIGHTS 11 12 TOTAL LOANS $2.1B $3.1B TOTAL ASSETS TOTAL DEPOSITS $2.7B 2015* 2016* 2017 2018 2019 2020 2021 2022 2023 2024 0.0 0.2 0.4 0.6 0.8 1.0 EARNINGS PER SHARE** DIVIDENDS PER SHARE** STOCK PRICE* STOCK PRICE $35 $40 $30 $20 $15 $10 $15 $5 NET EARNINGS $31.5M STOCK PRICE, EPS, & DIVIDENDS PER SHARE $3.50 $4.00 $3.00 $2.00 $2.50 $1.00 $1.50 $0.50 Pre-IPO stock prices are based on third-party valuations as of December 31 of each respective year. Post-IPO stock prices are based on the closing price of our common stock as of the last trading day of each respective calendar year. Earnings per share and dividends per share prior to 2021 have been adjusted to effect the 10% stock dividend in the first quarter of 2021. 13 14 * ** FIRMLY PLANTED FINANCIAL HIGHLIGHTS 16 Total Assets 2020 2021 2022 2023 2024 0 500 1000 1500 2000 2500 3000 3500 Total Loans* 2020 2021 2022 2023 2024 0 500 1000 1500 2000 2500 Total Deposits 2020 2021 2022 2023 2024 0 500 1000 1500 2000 2500 3000 Net Earnings 2020 2021 2022 2023 2024 0 10 20 30 40 50 ENTERED D/FW METROPLEX ENTERED AUSTIN AND FORT WORTH ENTERED GREATER HOUSTON $3,200,000 $2,800,000 $2,400,000 $2,000,000 $1,600,000 $1,200,000 $800,000 $400,000 $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total assets Loans and loans held for sale, net of allowance Investments in securities Total deposits Stockholders’ equity (2) Weighted average common shares outstanding (2) AT YEAR END OTHER FINANCIAL DATA Return on average total assets Return on average stockholders’ equity Loans to deposits Loan loss reserves to loans Net interest margin, fully taxable equivalent Tier 1 capital to average assets Efficiency ratio Charge-offs net of recoveries OPERATING RESULTS Net income (2) Market price (value based on year end numbers) Tangible Book value (1), (2) Cash dividends (2) 2020 2021 2022 2023 2024 $2,740,832 1,837,279 380,795 2,286,390 272,643 12,219,420 $3,086,070 1,880,205 526,469 2,670,827 302,214 12,065,182 $3,351,495 2,347,401 697,935 2,681,154 295,558 11,980,209 $3,184,791 2,291,857 600,403 2,633,246 303,846 11,693,761 $3,115,554 2,102,708 675,036 2,692,167 319,074 11,456,540 2020 2021 2022 2023 2024 1.07% 10.39% 81.65% 1.80% 3.77% 9.13% 58.86% $331 1.36% 13.72% 70.24% 1.59% 3.51% 9.18% 61.00% $1,486 1.24% 13.76% 87.43% 1.34% 3.54% 8.77% 60.85% $609 0.92% 10.10% 87.00% 1.33% 3.17% 9.47% 68.92% $1,054 1.01% 10.30% 78.10% 1.33% 3.35% 10.27% 69.01% $430 $89,982 13,200 23,037 — 66,522 33,297 5,895 27,402 40,261 $95,558 (1,700) 24,576 — 73,278 48,556 8,750 39,806 39,034 $107,829 2,150 23,485 172 79,907 49,257 8,834 40,423 50,154 $96,980 — 22,513 — 82,354 37,139 7,130 30,009 37,146 $100,079 (2,200) 20,737 — 81,852 38,964 7,473 31,491 36,810 2020 2021 2022 2023 2024 PER SHARE DATA 2020 2021 2022 2023 2024 $2.25 29.95 19.74 0.71 $3.30 37.58 22.09 0.80 $3.38 34.64 21.85 0.88 $2.57 33.62 23.37 0.92 $2.75 34.60 24.96 0.96 Indicates non-GAAP financial measure. Please see our Annual Report on Form 10-K "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Non-GAAP Financial Measures" for reconciliation to the most directly comparable GAAP measure. Periods prior to the stock dividend issued during the first quarter of 2021 have been adjusted to give effect to the 10% stock dividend 15 5-YEAR PERFORMANCE TRENDS (dollars in millions) *Total gross loans, including loans held for sale. 10-YEAR ASSET TREND CHART Total assets (dollars in thousands) Net interest income Provision for loan losses Non-interest income Net realized gain on securities Non-interest expense Earnings before provision for income taxes Income tax provision Net earnings Pre-tax, pre-provision, pre-PPP net earnings (1) (dollars in thousands, except per share data) (1) (2) $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $2,500 $2,000 $1,500 $1,000 $500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $0 $0 $50 $40 $30 $20 $10 $0 GUARANTY BANK & TRUST GUARANTY BANK & TRUST BOARD OF DIRECTORS BOARD OF DIRECTORS 17 18 DELIVERY OF ANNUAL REPORT This Annual Report is being delivered to shareholders of Guaranty Bancshares, Inc. (the “Company”) in connection with the 2025 Annual Meeting of Shareholders and should be read with the Company’s proxy statement for the meeting and Annual Report on Form 10-K, copies of which accompany this Annual Report and have been filed with the Securities and Exchange Commission (“SEC”). This Annual Report is also available on our website www.gnty. com under the heading “Investors – Financial Information.” The Company will mail additional copies of this Annual Report to its shareholders upon request. FORWARD LOOKING STATEMENTS This Annual Report may contain 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 SEC, 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; natural disasters and adverse weather, acts of terrorism, cyber-attacks, an outbreak of hostilities, a public health outbreak (such as COVID-19) or other international or domestic calamities, and other matters beyond our control; 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 services; 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 Annual Report, 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. DIVIDENDS CALENDAR Dividends on Guaranty Bancshares, Inc. common stock are payable, if paid, quarterly.