SOURCE: Guaranty Bancorp

Guaranty Bancorp

April 22, 2010 16:05 ET

Guaranty Bancorp Announces 2010 First Quarter Financial Results

DENVER, CO--(Marketwire - April 22, 2010) - Guaranty Bancorp (NASDAQ: GBNK)

--  Net interest margin increased to 3.50%, the second consecutive
    quarterly increase
--  Provision for loan losses decreased by 60% as compared to the
    previous quarter
--  Quarterly charge-offs at the lowest level since 2008
--  Total capital ratio increased to 14.28%, an all-time high

Guaranty Bancorp (NASDAQ: GBNK) today reported a first quarter 2010 net loss of $1.8 million, or $0.06 loss per basic and diluted common share after giving effect to preferred stock dividends, compared to a first quarter 2009 net income of $0.4 million, or $0.01 earnings per basic and diluted common share. The primary reason for the decrease from the prior year period is a $1.5 million increase in the provision for loan losses, as well as a $2.7 million increase in noninterest expense primarily from higher other real estate expenses. These items were partially offset by a $0.9 million increase in net interest income and a tax benefit on these items.

Dan Quinn, Guaranty Bancorp President and CEO, stated, "I continue to be encouraged by the improvement in our asset quality trends. First quarter charge-offs were 44% lower than the fourth quarter 2009 charge-offs and 60% lower than the first quarter 2009 charge-offs. Since September 30, 2009, our nonperforming assets have declined by over 10%. The provision for loan losses declined by 60% from the previous quarter to $4.0 million during the first quarter 2010 due mostly to a continued decline in overall classified assets. This is the second consecutive quarter of significant declines in the provision for loan losses as the fourth quarter 2009 provision for loan losses was 50% lower than the third quarter 2009. "

Mr. Quinn continued, "Our net interest margin also increased for the second consecutive quarter to 3.50% in the first quarter 2010, compared to 3.26% in the prior quarter. Although we continued to maintain a significant balance of low-yielding overnight funding, the net interest margin increased primarily due to higher loan yields and lower deposit costs."

Key Financial Measures

Income Statement

                                               Quarter Ended
                                   ---------------------------------------
                                     March 31,   December 31,   March 31,
                                       2010          2009         2009
                                   -----------   -----------   -----------

Earnings (loss) per common
 share-basic & diluted             $     (0.06)  $     (0.07)  $      0.01
Return on average assets                 (0.36%)       (0.35%)        0.09%
Net Interest Margin                       3.50%         3.26%         3.26%

Balance Sheet

                     March 31, December 31,           March 31,
                       2010        2009    % Change     2009     % Change
                     ---------  ---------  --------   ---------  --------
                       (Dollars in thousands, except per share amounts)
Cash and cash
 equivalents         $ 222,723  $ 234,483      (5.0)% $  34,982     536.7 %
Total investments      252,393    248,236       1.7 %   139,387      81.1 %
Total loans, net of
 unearned discount   1,435,071  1,519,608      (5.6)% 1,757,103     (18.3)%
Loans held for sale     11,506      9,862      16.7 %     5,175     122.3 %
Allowance for loan
 losses                (52,015)   (51,991)      0.0 %   (37,598)     38.3 %
Total assets         2,030,331  2,127,580      (4.6)% 2,036,395      (0.3)%
Average assets,
 quarter-to-date     2,066,930  2,117,257      (2.4)% 2,065,680       0.1 %
Total deposits       1,602,884  1,693,290      (5.3)% 1,639,797      (2.3)%
Book value per
 common share             2.44       2.50      (2.5)%      3.11     (21.6)%
Tangible book value
 per common share         2.10       2.13      (1.4)%      2.66     (21.0)%
Tangible book value
 per common share
 (after giving effect
 to conversion of
 preferred stock)         1.98       2.00      (0.9)%      2.66     (25.5)%
Book value of
 preferred stock        60,580     59,227       2.3 %      None       N/A
Liquidation value of
 preferred stock        61,787     60,434       2.2 %      None       N/A
Equity ratio - GAAP       9.41%      9.05%      4.0 %      8.03%     17.1 %
Tangible equity
 ratio                    8.60%      8.23%      4.5 %      6.94%     23.9 %
Total risk-based
 capital ratio           14.28%     13.80%      3.5 %     10.82%     32.0 %

Net Interest Income and Margin

                                          Quarter Ended
                      ----------------------------------------------------
                      March 31,  December   September  June 30,   March 31,
                        2010     31, 2009   30, 2009     2009       2009
                      ---------  ---------  ---------  ---------  ---------
                                     (Dollars in thousands)

Net interest income   $  16,632  $  16,284  $  14,911  $  15,860  $ 15,718
Interest rate spread       3.10%      2.81%      2.65%      2.77%     2.62%
Net interest margin        3.50%      3.26%      3.14%      3.38%     3.26%
Net interest margin,
 fully tax equivalent      3.58%      3.34%      3.23%      3.46%     3.34%

First quarter 2010 net interest income of $16.6 million increased by $0.3 million from the fourth quarter 2009, and increased $0.9 million from the first quarter 2009. The Company's net interest margin of 3.50% for the first quarter 2010 reflected an increase of 24 basis points from both the fourth quarter 2009 and the first quarter 2009. The increase in net interest margin and net interest spread in the first quarter 2010, as compared to the fourth quarter 2009, is primarily a result of an increase in loan yields and a reduction in the cost of deposits during the first quarter 2010. Loan yields were 5.65% for the first quarter 2010 as compared to 5.44% in the fourth quarter 2009, an increase of 21 basis points. The cost of deposits (excluding noninterest-bearing demand deposits) was 1.49% for the first quarter 2010 as compared to 1.74% in the previous quarter, a decline of 25 basis points. The $0.9 million increase in net interest income in the first quarter 2010 as compared to the same quarter in 2009 is primarily due to a $4.8 million favorable rate variance which was mostly offset by a $3.9 million unfavorable volume variance. The favorable rate variance is primarily attributable to a 48 basis point increase in loan yields in the first quarter 2010 as compared to the same period in 2009, as well as a 74 basis point decline in the overall cost of funds over the same period. Loan yields increased as a result of loan repricing with minimum rates established on loan renewals throughout 2009. The overall cost of funds declined primarily due to a 137 basis point decrease in time deposit rates as certificates of deposit repriced to lower rates upon renewal. The unfavorable volume variance is primarily a result of a $316.1 million decline in average loan balances in the first quarter 2010 as compared to the same quarter in 2009.

Noninterest Income

The following table presents noninterest income as of the dates indicated:

                                            Quarter Ended
                           ------------------------------------------------
                           March 31, December  September June 30, March 31,
                             2010    31, 2009  30, 2009    2009    2009
                           --------- --------  --------  --------- --------
                                           (In thousands)
Noninterest income:
 Customer service and
  other fees               $   2,214 $  2,206  $  2,281  $   2,354 $  2,679
 Gain (loss) on sale of
  securities                      14       (1)       (1)         -        -
 Other                           194      127       242        277      215
                           --------- --------  --------  --------- --------
 Total noninterest income  $   2,422 $  2,332  $  2,522  $   2,631 $  2,894
                           ========= ========  ========  ========= ========

Noninterest income for the first quarter 2010 remained relatively flat as compared to the fourth quarter 2009, and declined by approximately $0.5 million from the first quarter 2009.

The decline in noninterest income in the first quarter 2010 as compared to the same quarter in 2009 is mostly due to customer service and other fees, which declined primarily as a result of a $0.2 million decrease in analysis account fees due to lower activity, as well as a net $0.3 million decline in all other fee income.

Noninterest Expense

The following table presents noninterest expense as of the dates indicated:

                                            Quarter Ended
                           ------------------------------------------------
                           March 31, December  September June 30, March 31,
                             2010    31, 2009  30, 2009    2009     2009
                           --------- --------- --------- --------- --------
                                           (In thousands)
Noninterest expense:
 Salaries and employee
  benefits                 $   6,563 $   6,560 $   6,536 $   6,712 $  6,739
 Occupancy expense             1,890     1,854     1,908     1,926    1,921
 Furniture and equipment         976     1,060     1,103     1,147    1,131
 Amortization of
  intangible assets            1,300     1,556     1,559     1,581    1,582
 Other real estate owned       2,749     3,281     1,654       915       48
 Insurance and assessments     1,812     1,612     1,688     2,195    1,041
 Professional fees               877       963       516       896      849
 Other general and
  administrative               1,959     2,860     2,517     2,342    2,149
                           --------- --------- --------- --------- --------
 Total noninterest expense $  18,126 $  19,746 $  17,481 $  17,718 $ 15,460
                           ========= ========= ========= ========= ========

Noninterest expense for the first quarter 2010 decreased by $1.6 million as compared to the fourth quarter 2009 and increased by $2.7 million from the first quarter 2009.

The $1.6 million decline in noninterest expense in the first quarter 2010 as compared to the fourth quarter 2009 is due mostly to a $0.9 million decline in other general and administrative expense, a $0.5 million decline in other real estate owned expense and a $0.3 million decline in amortization of intangible assets. The decrease in other general and administrative expenses is due to several decreases in miscellaneous other expenses. The decline in other real estate owned expense is due to a decline in write-downs on other real estate owned properties resulting from valuation adjustments and sales. The decrease in intangible asset amortization is due to accelerated amortization on our core deposit intangible assets.

The $2.7 million increase in noninterest expense in the first quarter 2010 as compared to the same period in 2009 is mostly due to a $2.7 million increase in other real estate owned expense and a $0.8 million increase in insurance and assessments. These increases were partially offset by a $0.2 million decrease in salaries and employee benefits, a combined $0.2 million decrease in occupancy and furniture & equipment expense, a $0.3 million decrease in amortization of intangible assets and a $0.2 million decrease in other general and administrative expense. The $2.7 million increase in other real estate owned expense in the first quarter 2010 as compared to the same period in 2009 is due to write-downs on other real estate owned properties resulting from valuation adjustments and sales. The $0.8 million increase in insurance and assessments is mostly due to higher FDIC insurance premiums in 2010 as compared to 2009.

Preferred Stock Dividend

On February 15, 2010, a non-cash preferred stock dividend was paid in the form of additional shares of Series A convertible preferred stock to holders of Series A convertible preferred stock in the amount of $1.4 million. The effect of this preferred stock dividend was to increase the loss allocable to common shareholders as reflected in the earnings (loss) per common share computation.

Balance Sheet

                     March 31,   December              March 31,
                       2010      31, 2009  % Change      2009    % Change
                    ----------  ----------  -------   ----------  -------
                       (Dollars in thousands, except per share amounts)
Total assets        $2,030,331  $2,127,580     (4.6)% $2,036,395     (0.3)%
Average assets,
 quarter-to-date     2,066,930   2,117,257     (2.4)%  2,065,680      0.1 %
Loans, net of
 unearned discount   1,435,071   1,519,608     (5.6)%  1,757,103    (18.3)%
Total deposits       1,602,884   1,693,290     (5.3)%  1,639,797     (2.3)%


Equity ratio - GAAP       9.41%       9.05%     4.0 %       8.03%    17.1 %
Tangible equity
 ratio                    8.60%       8.23%     4.5 %       6.94%    23.9 %

At March 31, 2010, total assets of $2.0 billion declined by $97.2 million, or 4.6%, as compared to December 31, 2009 and remained relatively flat as compared to March 31, 2009. The decline in assets from December 31, 2009 is mostly due to an $84.5 million decline in loans, net of unearned discount. Most of this decrease was in commercial loans. The decline in commercial loans is partly attributable to planned efforts by the bank to reduce lower yielding syndicated and participated loans.

Although total assets remained relatively flat at March 31, 2010 as compared to March 31, 2009, there was a change in the mix of assets as total loans declined by $322 million, while investment securities increased by $113 million and cash and cash equivalents increased by $187 million. The increase in cash and cash equivalents is primarily a result of management's decision to improve the bank's overall liquidity position. Management continues to evaluate alternatives to utilize this additional low-yielding liquidity in the existing interest-rate environment in order to improve our future net interest margin.

The GAAP equity ratio and tangible equity ratio increased at March 31, 2010 as compared to December 31, 2009. Additionally, both the GAAP equity ratio and tangible equity ratio increased significantly from March 31, 2009, primarily as a result of the issuance of $57.8 million, net of expenses, of convertible preferred stock in August 2009.

The following table sets forth the amounts of our loans outstanding (excluding loans held for sale) at the dates indicated:

                                      March 31,   December 31,  March 31,
                                        2010         2009         2009
                                     -----------  -----------  -----------
                                                 (In thousands)
Loans on real estate:
  Residential and commercial         $   748,135  $   760,719  $   658,982
  Construction                           111,231      105,612      250,665
  Equity lines of credit                  53,014       54,852       52,679
Commercial loans                         448,908      521,016      714,218
Agricultural loans                        17,203       18,429       22,686
Lease financing                            4,014        4,011        3,547
Installment loans to individuals          34,986       36,175       38,220
Overdrafts                                   612          358          987
SBA and other                             19,396       20,997       18,294
                                     -----------  -----------  -----------
                                       1,437,499    1,522,169    1,760,278
Unearned discount                         (2,428)      (2,561)      (3,175)
                                     -----------  -----------  -----------
Loans, net of unearned discount      $ 1,435,071  $ 1,519,608  $ 1,757,103
                                     ===========  ===========  ===========

There were $912.4 million of real estate loans at March 31, 2010 as compared to $921.2 million at December 31, 2009, a decrease of $8.8 million as management continues efforts to decrease its exposure to residential and commercial real-estate.

The $139.4 million decrease in construction loans, and the $89.2 million increase in residential and commercial real estate loans at March 31, 2010 as compared to March 31, 2009 is partially due to reclassifying $124.0 million of construction loans to residential and commercial real estate loans because of the completion of the underlying building projects and the commencement of amortization on these loans. A portion of the remainder of the decrease in construction loans was a result of payoffs on existing loans, as well as moving loans to other real estate owned during 2009 and 2010.

The following table sets forth the amounts of our deposits outstanding at the dates indicated:

                                      March 31,   December 31,  March 31,
                                         2010         2009         2009
                                     ------------ ------------ ------------
                                                 (In thousands)
Noninterest bearing deposits         $    363,059 $    366,103 $    422,509
Interest bearing demand                   165,315      171,844      140,110
Money market                              321,603      352,127      285,164
Savings                                    74,537       71,816       72,157
Time                                      678,370      731,400      719,857
                                     ------------ ------------ ------------
Total deposits                       $  1,602,884 $  1,693,290 $  1,639,797
                                     ============ ============ ============

Total deposits decreased by $90.4 million to $1.60 billion at March 31, 2010 as compared to $1.69 billion at December 31, 2009, and decreased by $36.9 million as compared to $1.64 billion at March 31, 2009. The overall decrease in deposits during the first quarter 2010 is mostly due to a $53.0 million decline in time deposits and a $30.5 million decline in money markets due mostly to seasonal fluctuations of customer balances.

Borrowings were $164.3 million at March 31, 2010 as compared to $164.4 million at December 31, 2009, and $164.5 million at March 31, 2009. The entire balance of borrowings at each balance sheet date consisted of term advances with the Federal Home Loan Bank.

Regulatory Capital Ratios

The Company's and the subsidiary bank's capital ratios increased at March 31, 2010 as compared to December 31, 2009 due to a decrease in risk-weighted assets. All of the regulatory capital ratios are above the highest regulatory capital requirement of "well-capitalized" at March 31, 2010. The Company's and the subsidiary bank's actual capital ratios for March 31, 2010 and December 31, 2009 are presented in the table below:

                                                                  Minimum
                                                                Requirement
                                Ratio at   Ratio at   Minimum   for "Well
                                March 31,  December   Capital  Capitalized"
                                  2010     31, 2009 Requirement Institution
                                ---------  ---------  ---------  ---------

Total Risk-Based Capital Ratio:
  Consolidated                      14.28%     13.80%      8.00%       N/A
  Guaranty Bank and Trust
   Company                          13.40%     12.82%      8.00%     10.00%
Tier 1 Risk-Based Capital
 Ratio:
  Consolidated                       9.64%      9.43%      4.00%       N/A
  Guaranty Bank and Trust
   Company                          12.12%     11.55%      4.00%      6.00%
Leverage Ratio:
  Consolidated                       7.94%      7.89%      4.00%       N/A
  Guaranty Bank and Trust
   Company                           9.90%      9.66%      4.00%      5.00%

Generally, the allowance for loan losses is included in total capital for regulatory purposes; however, it is limited to 1.25% of total risk-weighted assets. At March 31, 2010, approximately $30.7 million of the subsidiary bank's allowance for loan losses is disallowed from being included in total risk-based capital under the regulatory capital rules, or approximately 1.84% of the subsidiary bank's risk-weighted assets.

Asset Quality

The following table presents selected asset quality data (excluding loans held for sale) as of the dates indicated:

                     March 31,  December   September  June 30,   March 31,
                       2010     31, 2009   30, 2009     2009       2009
                     ---------  ---------  ---------  ---------  ---------
                                     (Dollars in thousands)

Nonaccrual loans,
 not restructured    $  70,500  $  59,584  $  81,035  $  52,483  $  57,299
Other nonperforming
 loans                     558        123        150      2,671        911
                     ---------  ---------  ---------  ---------  ---------

Total nonperforming
 loans (NPLs)        $  71,058  $  59,707  $  81,185  $  55,154  $  58,210
Other real estate
 owned and
 foreclosed assets      30,918     37,192     32,246     34,746     14,524
                     ---------  ---------  ---------  ---------  ---------

Total nonperforming
 assets (NPAs)       $ 101,976  $  96,899  $ 113,431  $  89,900  $  72,734
                     =========  =========  =========  =========  =========

Accruing loans past
 due 90 days or more
 (1)                 $     558  $     123  $   9,140  $   2,671  $     911
                     =========  =========  =========  =========  =========

Accruing loans past
 due 30-89 days (1)  $  21,956  $  21,709  $  52,443  $  39,836  $  31,957
                     =========  =========  =========  =========  =========

Allowance for loan
 losses              $  52,015  $  51,991  $  49,038  $  43,041  $  37,598
                     =========  =========  =========  =========  =========

Selected ratios:
NPLs to loans, net
 of unearned
 discount                 4.95%      3.93%      5.11%      3.34%      3.31%
NPAs to total assets      5.02%      4.55%      5.51%      4.62%      3.57%
Allowance for loan
 losses to NPAs          51.01%     53.65%     43.23%     47.88%     51.69%
Allowance for loan
 losses to NPLs          73.20%     87.08%     60.40%     78.04%     64.59%
Allowance for loan
 losses to loans,
 net of unearned
 discount                 3.62%      3.42%      3.09%      2.61%      2.14%
Loans 30-89 days
 past due to loans,
 net of unearned
 discount                 1.53%      1.43%      3.30%      2.41%      1.82%

(1)Past due loans include both loans that are past due with respect to
payments, and loans that are past due with respect to the fact that the
loan has matured and is in the process of renewal, but continues to be
current with respect to payments.

The types of nonperforming loans (excluding loans held for sale) as of March 31, 2010 and December 31, 2009 are as follows:

                -----------------------------------------------------------
                                    Nonperforming Loans
                -----------------------------------------------------------
                       March 31, 2010               December 31, 2009
                ----------------------------- -----------------------------
                  Loan               Related    Loan               Related
                 Balance  Percent   Allowance  Balance  Percent   Allowance
                --------- --------  --------- --------- --------  ---------
                                  (Amounts in thousands)
Residential
 Construction,
 Land and Land
 Development    $  39,931     56.2% $   4,681 $  25,812     43.2% $   2,542
Other
 Residential
 Loans              4,054      5.7%       649     3,131      5.2%       623
Commercial and
 Industrial
 Loans             10,661     15.0%     1,620    18,206     30.5%     1,960
Commercial Real
 Estate            16,069     22.6%     3,852    12,188     20.5%     1,468
Other                 343      0.5%         -       370      0.6%        10
                --------- --------  --------- --------- --------  ---------
Total           $  71,058    100.0% $  10,802 $  59,707    100.0% $   6,603
                ========= ========  ========= ========= ========  =========

The increase in nonperforming loans related to residential construction, land and land development is primarily a result of one syndicated credit that was downgraded by the lead bank, of which our share is $19.1 million. The amount of the allowance for loan losses allocated to this loan is $1.4 million. The underlying collateral on this syndicated credit is a for-rent multifamily project which is essentially leasing to plan; however, the loan was placed on nonaccrual status due to issues between the borrower's parent company and the lead bank. This loan was placed on nonaccrual status due to the lead lender's efforts to reach a broader settlement with the borrower's parent company on this property and other projects in which we do not participate.

The types of loans included in the accruing loans past due 30-89 days as of March 31, 2010 and December 31, 2009 are as follows:

                        --------------------------------------------------
                                Accruing loans past due 30-89 days
                        --------------------------------------------------
                             March 31, 2010           December 31, 2009
                        ------------------------  ------------------------
                        Loan Balance   Percent    Loan Balance   Percent
                        ------------ -----------  ------------ -----------
                                      (Amounts in thousands)
Residential Construction,
 Land and Land
 Development            $      5,138        23.4% $     10,265        47.3%
Other Residential Loans        1,382         6.3%        2,103         9.7%
Commercial and
 Industrial Loans              5,027        22.9%        4,038        18.6%
Commercial Real Estate         2,268        10.3%        3,516        16.2%
Other                          8,141        37.1%        1,787         8.2%
                        ------------ -----------  ------------ -----------
Total                   $     21,956       100.0% $     21,709       100.0%
                        ============ ===========  ============ ===========

The overall level of accruing loans past due 30-89 days remains stable with the previous quarter. The level of past due loans for the prior two quarters reflects a significant decline when compared to the first three quarters of 2009. At March 31, 2010, approximately $9.8 million of the $22.0 million of accruing loans past due 30-89 days were matured and in the process of renewal. These loans are current with respect to payments, but are considered past due as they have matured and are expected to be renewed. Due to more conservative underwriting requirements and pricing increases being sought, it is taking longer to negotiate and redocument the matured loans.

Net charge-offs in the first quarter 2010 were $4.0 million as compared to $7.1 million in the fourth quarter 2009 and $9.9 million in the first quarter 2009. This is the lowest level of quarterly charge-offs since 2008. Impaired loans as of March 31, 2010 totaled $71.1 million compared to $59.7 million at December 31, 2009 and $58.2 million at March 31, 2009.

The Company recorded a provision for loan losses in the first quarter 2010 of $4.0 million, as compared to $10.0 million in the fourth quarter 2009 and $2.5 million in the first quarter 2009. The first quarter 2010 provision for loan losses is 60% lower than the fourth quarter 2009. The provision for loan losses in the first quarter consisted of an $8.1 million increase in the specific component of the allowance including charge-offs on impaired loans, partially offset by a $4.1 million decrease in the general component of the allowance due primarily to declines in overall classified and watch list loans, as well as a decrease in the balance of loans that are allocated a general component of the allowance for loan losses.

Shares Outstanding

As of March 31, 2010, the Company had 52,825,468 shares of common stock outstanding, including 1,330,571 shares of unvested stock awards, but excluding 156,567 shares of common stock to be issued under its deferred compensation plan. In addition, the company had 61,787 shares of Series A convertible preferred stock outstanding, with a liquidation value of $1,000 per share.

Non-GAAP Financial Measures

This press release includes non-GAAP financial measures related to tangible assets, including tangible book value, tangible book value (after giving effect to conversion of preferred stock), and tangible equity ratio, which exclude intangible assets.

The Company discloses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company's operational performance and to enhance investors' overall understanding of the Company's core financial performance. Management believes that these non-GAAP financial measures allow for additional transparency and are used by some investors, analysts and other users of the Company's financial information as performance measures. These non-GAAP financial measures are presented for supplemental informational purposes only for understanding the Company's operating results and should not be considered a substitute for financial information presented in accordance with GAAP. These non-GAAP financial measures presented by the Company may be different from non-GAAP financial measures used by other companies.

The following non-GAAP schedule reconciles the book value per share to the tangible book value per share and the tangible equity ratio as of the dates indicated:

                                      March 31,   December 31,  March 31,
                                         2010         2009         2009
                                     -----------  -----------  -----------
                                       (Dollars in thousands, except per
                                                  share amounts)
Tangible Book Value per Common Share
  Total stockholders' equity         $   190,980  $   192,638  $   163,573
  Less: Preferred share liquidation
   preference                            (61,787)     (60,434)           -
                                     -----------  -----------  -----------
  Stockholders' equity attributable
   to common shares                      129,193      132,204      163,573
  Less: Intangible assets                (17,922)     (19,222)     (23,918)
                                     -----------  -----------  -----------
  Tangible common equity             $   111,271  $   112,982  $   139,655
                                     ===========  ===========  ===========

  Number of common shares
   outstanding and to be issued       52,982,035   52,952,703   52,570,986


  Number of shares of preferred
   stock outstanding                      61,787       60,434          N/A

  Number of shares of common stock
   to be issued upon conversion of
   preferred stock                    34,326,111   33,574,444          N/A

  Book value per common share        $      2.44  $      2.50  $      3.11
  Tangible book value per common
   share                             $      2.10  $      2.13  $      2.66
  Tangible book value per common
   share (after giving effect to
   conversion of preferred stock)    $      1.98  $      2.00  $      2.66

Tangible Equity Ratio
  Total assets                       $ 2,030,331  $ 2,127,580  $ 2,036,395
  Less: Intangible assets                (17,922)     (19,222)     (23,918)
                                     -----------  -----------  -----------
  Tangible assets                    $ 2,012,409  $ 2,108,358  $ 2,012,477
                                     ===========  ===========  ===========

Equity ratio - GAAP
  (Total stockholders' equity /
   total assets)                            9.41%        9.05%        8.03%
Tangible equity ratio
  (Tangible common equity +
   Preferred share liquidation
   preference) / tangible assets            8.60%        8.23%        6.94%

About Guaranty Bancorp

Guaranty Bancorp is a bank holding company that operates 34 branches in Colorado through a single bank, Guaranty Bank and Trust Company. The bank provides banking and other financial services including real estate, construction, commercial and industrial, energy, consumer and agricultural loans throughout its targeted Colorado markets to consumers and small to medium-sized businesses, including the owners and employees of those businesses. The bank also provides trust services, including personal trust administration, estate settlement, investment management accounts and self-directed IRAs. More information about Guaranty Bancorp can be found at www.gbnk.com.

Forward-Looking Statements

This press release contains forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms and other comparable terminology. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: failure to maintain adequate levels of capital and liquidity to support Company's operations; the effect of the regulatory written agreement the Company and its bank subsidiary have entered into and potential future supervisory action against the Company or its bank subsidiary; general economic and business conditions in those areas in which the Company operates; demographic changes; competition; fluctuations in interest rates; continued ability to attract and employ qualified personnel; ability to receive regulatory approval for our bank subsidiary to declare dividends to the Company; adequacy of our allowance for loan losses, changes in credit quality and the effect of credit quality on our provision for credit losses and allowance for loan losses; changes in governmental legislation or regulation, including, but not limited to, any increase in FDIC insurance premiums; changes in accounting policies and practices; changes in the deferred tax asset valuation allowance; changes in business strategy or development plans; changes in the securities markets; changes in consumer spending, borrowing and savings habits; the availability of capital from private or government sources; competition for loans and deposits and failure to attract or retain loans and deposits; changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements; political instability, acts of war or terrorism and natural disasters; and additional "Risk Factors" referenced in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, as supplemented from time to time. When relying on forward-looking statements to make decisions with respect to the Company, investors and others are cautioned to consider these and other risks and uncertainties. The Company 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, which speak only as of the date made. The forward-looking statements are made as of the date of this press release, and the Company does not intend, and assumes no obligation, to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.



                    GUARANTY BANCORP AND SUBSIDIARIES
                  Unaudited Consolidated Balance Sheets

                                      March 31,  December 31,   March 31,
                                         2010         2009         2009
                                     -----------  -----------  -----------
                                                 (In thousands)
Assets
Cash and due from banks              $   222,723  $   234,483  $    34,982
Federal funds sold                             -            -        1,000
                                     -----------  -----------  -----------
      Cash and cash equivalents          222,723      234,483       35,982
                                     -----------  -----------  -----------
Securities available for sale, at
 fair value                              219,490      221,134       99,107
Securities held to maturity               15,760        9,942       11,946
Bank stocks, at cost                      17,143       17,160       28,334
                                     -----------  -----------  -----------
      Total investments                  252,393      248,236      139,387
                                     -----------  -----------  -----------

Loans, net of unearned discount        1,435,071    1,519,608    1,757,103
  Less allowance for loan losses         (52,015)     (51,991)     (37,598)
                                     -----------  -----------  -----------
      Net loans                        1,383,056    1,467,617    1,719,505
                                     -----------  -----------  -----------
Loans held for sale                       11,506        9,862        5,175
Premises and equipment, net               59,587       60,267       62,386
Other real estate owned and
 foreclosed assets                        30,918       37,192       14,524
Other intangible assets, net              17,922       19,222       23,918
Other assets                              52,226       50,701       35,518
                                     -----------  -----------  -----------
      Total assets                   $ 2,030,331  $ 2,127,580  $ 2,036,395
                                     ===========  ===========  ===========

Liabilities and Stockholders' Equity
Liabilities:
  Deposits:
    Noninterest-bearing demand       $   363,059  $   366,103  $   422,509
    Interest-bearing demand              486,918      523,971      425,274
    Savings                               74,537       71,816       72,157
    Time                                 678,370      731,400      719,857
                                     -----------  -----------  -----------
      Total deposits                   1,602,884    1,693,290    1,639,797
                                     -----------  -----------  -----------
Securities sold under agreements to
 repurchase and federal funds
 purchased                                18,387       22,990       16,291
Borrowings                               164,310      164,364      164,499
Subordinated debentures                   41,239       41,239       41,239
Interest payable and other
 liabilities                              12,531       13,059       10,996
                                     -----------  -----------  -----------
      Total liabilities                1,839,351    1,934,942    1,872,822
                                     -----------  -----------  -----------

Stockholders' equity:
  Preferred stock and Additional
   paid-in capital - Preferred stock      60,580       59,227            -
  Common stock and Additional
   paid-in capital - Common stock        618,779      618,408      617,314
  Shares to be issued for deferred
   compensation obligations                  237          199           81
  Accumulated deficit                   (385,804)    (382,599)    (351,567)
  Accumulated other comprehensive
   income (loss)                            (341)        (143)         166
  Treasury Stock                        (102,471)    (102,454)    (102,421)
                                     -----------  -----------  -----------
      Total stockholders' equity         190,980      192,638      163,573
                                     -----------  -----------  -----------
      Total liabilities and
       stockholders' equity          $ 2,030,331  $ 2,127,580  $ 2,036,395
                                     ===========  ===========  ===========







                    GUARANTY BANCORP AND SUBSIDIARIES
             Unaudited Consolidated Statements of Operations


                                              Three Months Ended March 31,
                                              -----------------------------
                                                  2010           2009
                                              -------------  --------------
                                              (In thousands, except share
                                                  and per share data)
Interest income:

  Loans, including fees                       $      20,784  $       23,076
  Investment securities:
    Taxable                                           1,516             726
    Tax-exempt                                          720             767
  Dividends                                             185             288
  Federal funds sold and other                          116               3
                                              -------------  --------------
    Total interest income                            23,321          24,860
                                              -------------  --------------
Interest expense:
  Deposits                                            4,713           7,125
  Federal funds purchased and repurchase
   agreements                                            43              38
  Borrowings                                          1,301           1,321
  Subordinated debentures                               632             658
                                              -------------  --------------
    Total interest expense                            6,689           9,142
                                              -------------  --------------
    Net interest income                              16,632          15,718
Provision for loan losses                             4,000           2,505
                                              -------------  --------------
Net interest income, after provision for loan
 losses                                              12,632          13,213
Noninterest income:
  Customer service and other fees                     2,214           2,679
  Gain on sale of securities                             14               -
  Other                                                 194             215
                                              -------------  --------------
    Total noninterest income                          2,422           2,894
Noninterest expense:
  Salaries and employee benefits                      6,563           6,739
  Occupancy expense                                   1,890           1,921
  Furniture and equipment                               976           1,131
  Amortization of intangible assets                   1,300           1,582
  Other real estate owned                             2,749              48
  Insurance and assessments                           1,812           1,041
  Professional fees                                     877             849
  Other general and administrative                    1,959           2,149
                                              -------------  --------------
    Total noninterest expense                        18,126          15,460
                                              -------------  --------------
    Income (loss) before income taxes                (3,072)            647
Income tax expense (benefit)                         (1,227)            211
                                              -------------  --------------
    Net income (loss)                                (1,845)            436
Preferred stock dividends                            (1,360)              -
                                              -------------  --------------
Net income (loss) applicable to common
 shareholders                                 $      (3,205) $          436
                                              =============  ==============


Earnings (loss) per common share-basic:       $       (0.06) $         0.01
Earnings (loss) per common share-diluted:             (0.06)           0.01


Weighted average common shares
 outstanding-basic                               51,607,044      51,277,748
Weighted average common shares
 outstanding-diluted                             51,607,044      51,277,930










                    GUARANTY BANCORP AND SUBSIDIARIES
              Unaudited Consolidated Average Balance Sheets


                                        -----------------------------------
                                                    QTD Average
                                        -----------------------------------
                                         March 31, December 31,  March 31,
                                            2010        2009        2009
                                        ----------- ----------- -----------
                                                  (In thousands)
Assets
Interest earning assets
  Loans, net of unearned discount       $ 1,492,630 $ 1,578,761 $ 1,808,727
  Securities                                245,518     228,608     141,031
  Other earning assets                      190,302     176,049       5,175
                                        ----------- ----------- -----------
Average earning assets                    1,928,450   1,983,418   1,954,933
Other assets                                138,480     133,839     110,747
                                        ----------- ----------- -----------
Total average assets                    $ 2,066,930 $ 2,117,257 $ 2,065,680
                                        =========== =========== ===========


 Liabilities and Stockholders' Equity
Average liabilities:
Average deposits:
  Noninterest-bearing deposits          $   352,937 $   363,177 $   432,080
  Interest-bearing deposits               1,282,119   1,320,410   1,227,242
                                        ----------- ----------- -----------
  Average deposits                        1,635,056   1,683,587   1,659,322
Other interest-bearing liabilities          224,856     223,835     230,379
Other liabilities                            13,105      11,979      12,122
                                        ----------- ----------- -----------
Total average liabilities                 1,873,017   1,919,401   1,901,823
Average stockholders' equity                193,913     197,856     163,857
                                        ----------- ----------- -----------
Total average liabilities and
 stockholders' equity                   $ 2,066,930 $ 2,117,257 $ 2,065,680
                                        =========== =========== ===========








                             GUARANTY BANCORP
                    Unaudited Credit Quality Measures

                                         Quarter Ended
                     -----------------------------------------------------
                     March 31,  December   September  June 30,   March 31,
                       2010     31, 2009   30, 2009     2009       2009
                     ---------  ---------  ---------  ---------  ---------
                                    (Dollars in thousands)
 Nonaccrual loans
  and leases, not
  restructured       $  70,500  $  59,584  $  81,035  $  52,483  $  57,299
 Other nonperforming
  loans                    558        123        150      2,671        911
                     ---------  ---------  ---------  ---------  ---------
   Total
    nonperforming
    loans            $  71,058  $  59,707  $  81,185  $  55,154  $  58,210
                     ---------  ---------  ---------  ---------  ---------
 Other real estate
  owned and
  foreclosed
  assets                30,918     37,192     32,246     34,746     14,524
                     ---------  ---------  ---------  ---------  ---------
   Total
    nonperforming
    assets           $ 101,976  $  96,899  $ 113,431  $  89,900  $  72,734
                     =========  =========  =========  =========  =========


 Impaired loans      $  71,058  $  59,707  $  81,185  $  55,154  $  58,210
 Allocated allowance
  for loan losses      (10,802)    (6,603)    (7,515)    (7,291)    (6,342)
                     ---------  ---------  ---------  ---------  ---------
   Net investment in
    impaired loans   $  60,256  $  53,104  $  73,670  $  47,863  $  51,868
                     =========  =========  =========  =========  =========


Accruing loans past
 due 90 days or more $     558  $     123  $   9,140  $   2,671  $     911
                     =========  =========  =========  =========  =========


Accruing loans past
 due 30-89 days      $  21,956  $  21,709  $  52,443  $  39,836  $  31,957
                     =========  =========  =========  =========  =========


Charged-off loans    $   4,271  $   7,618  $  14,618  $  13,509  $  10,262
 Recoveries               (295)      (566)      (615)      (347)      (367)
                     ---------  ---------  ---------  ---------  ---------
   Net charge-offs   $   3,976  $   7,052  $  14,003  $  13,162  $   9,895
                     =========  =========  =========  =========  =========


Provision for loan
 loss                $   4,000  $  10,005  $  20,000  $  18,605  $   2,505
                     =========  =========  =========  =========  =========


Allowance for loan
 losses              $  52,015  $  51,991  $  49,038  $  43,041  $  37,598
                     =========  =========  =========  =========  =========


Allowance for loan
 losses to loans,
 net of unearned
 discount                 3.62%      3.42%      3.09%      2.61%      2.14%
Allowance for loan
 losses to
 nonaccrual loans        73.78%     87.26%     60.51%     82.01%     65.62%
Allowance for loan
 losses to
 nonperforming
 assets                  51.01%     53.65%     43.23%     47.88%     51.69%
Allowance for loan
 losses to
 nonperforming loans     73.20%     87.08%     60.40%     78.04%     64.59%
Nonperforming assets
 to loans, net of
 unearned discount,
 and other real
 estate owned             6.96%      6.22%      7.00%      5.33%      4.11%
Nonperforming assets
 to total assets          5.02%      4.55%      5.51%      4.62%      3.57%
Nonaccrual loans to
 loans, net of
 unearned discount        4.91%      3.92%      5.11%      3.18%      3.26%
Nonperforming loans
 to loans, net of
 unearned discount        4.95%      3.93%      5.11%      3.34%      3.31%
Annualized net
 charge-offs to
 average loans            1.08%      1.77%      3.42%      3.05%      2.22%

Contact Information

  • Contact:
    Daniel M. Quinn
    President & Chief Executive Officer
    1331 Seventeenth Street, Suite 300
    Denver, CO 80202
    303/313-6763

    Paul W. Taylor
    E.V.P., Chief Financial & Operating Officer & Secretary
    1331 Seventeenth Street, Suite 300
    Denver, CO 80202
    303/293-5563