DENVER, CO--(Marketwire - Apr 21, 2011) - Guaranty Bancorp (NASDAQ: GBNK)
-- Net income of $0.5 million (before non-cash preferred stock dividends)
-- Asset quality shows continued improvement highlighted by a 7.2%
decrease in classified assets in the first quarter 2011 and a 2.7%
decline in nonperforming assets
-- Continued growth in lower cost core deposits with $57.4 million of
additional growth in the first quarter 2011
-- Capital and liquidity remain strong
Guaranty Bancorp (NASDAQ: GBNK) today reported first quarter 2011 net income of $0.5 million before preferred stock dividends compared to a net loss of $1.8 million before preferred stock dividends in the first quarter 2010. After giving effect to the preferred stock dividends, the loss per basic and diluted common share in the first quarter 2011 was $0.02 compared to a loss per basic and diluted common share of $0.06 for the same period in 2010.
The Company's net income before preferred stock dividends for the first quarter 2011 of $0.5 million is an increase of $2.4 million as compared to the first quarter 2010. On a pre-tax basis, the improvement in net income was $3.6 million for the first quarter 2011 as compared to 2010. This increase is primarily due to approximately $4.0 million in lower costs associated with problem assets, a $0.7 million reduction in other expenses and a $0.7 million gain on sale of securities, partially offset by a $1.9 million reduction in net interest income due mostly to lower loan balances.
Paul W. Taylor, Guaranty Bancorp's CFO and COO, stated, "We are very pleased with progress made in 2011 to improve the core operating metrics of the bank. The net income before our non-cash preferred stock dividends is attributable to the risk-reduction strategies employed during the past two years. As important, we continued to improve the asset quality of the bank while growing core deposits. After a 23% decrease in classified assets in 2010, classified assets declined by another 7.2% and nonperforming assets declined modestly in the first quarter 2011. Our low cost core deposits increased by $57.4 million, or 5.8%, during the first quarter 2011 due to our continued focus on growing our retail and business customer base. Even with the growth in core deposits, the interest expense associated with core deposits actually declined by $0.1 million due to lower rates on our core deposits. Additionally, we continue to strategically reduce higher cost time deposits. The $81.4 million decrease in time deposits in the first quarter 2011 resulted in a $0.5 million decrease in our interest expense."
As previously announced, the resignation of Dan Quinn, Guaranty Bancorp's President and CEO, will be effective as of the Company's Annual Meeting of Stockholders, which is scheduled for May 3, 2011. The Board of Directors is in the process of the search for a new CEO and President with the assistance of an executive search firm focused on the financial institutions industry. Several qualified candidates have been identified and are in the process of being interviewed.
Key Financial Measures
Income Statement
Quarter Ended
-------------------------------------
March 31, December 31, March 31,
2011 2010 2010
----------- ----------- -----------
(Dollars in thousands, except per
share amounts)
Income (loss) before taxes $ 514 $ (21,133) $ (3,072)
Net income (loss) before preferred
stock dividends 514 (21,133) (1,845)
Preferred stock dividends 1,486 1,453 1,360
Loss per common share after giving
effect to preferred stock
dividend-basic & diluted $ (0.02) $ (0.44) $ (0.06)
Return on average assets 0.11% (4.32%) (0.36%)
Net interest margin 3.42% 3.39% 3.50%
Balance Sheet
March 31, December 31, % March 31, %
2011 2010 Change 2010 Change
--------- --------- ------ --------- ------
(Dollars in thousands, except per share amounts)
Cash and cash
equivalents $ 184,777 $ 141,465 30.6 % $ 222,723 (17.0)%
Total investments 409,126 418,668 (2.3)% 252,393 62.1 %
Total loans, net of
unearned discount 1,126,083 1,204,580 (6.5)% 1,435,071 (21.5)%
Loans held for sale 14,200 14,200 0.0 % 11,506 23.4 %
Allowance for loan
losses (46,879) (47,069) (0.4)% (52,015) (9.9)%
Total assets 1,834,457 1,870,052 (1.9)% 2,030,331 (9.6)%
Average assets,
quarter-to-date 1,869,896 1,940,513 (3.6)% 2,066,930 (9.5)%
Total deposits 1,438,320 1,462,351 (1.6)% 1,602,884 (10.3)%
Book value per common
share 1.71 1.76 (2.8)% 2.44 (29.9)%
Tangible book value per
common share 1.47 1.50 (2.0)% 2.10 (30.0)%
Tangible book value per
common share (after
giving effect to
conversion of
preferred stock) 1.60 1.62 (1.2)% 1.98 (19.2)%
Book value of preferred
stock 66,297 64,818 2.3 % 60,580 9.4 %
Liquidation value of
preferred stock 67,504 66,025 2.2 % 61,787 9.3 %
Equity ratio - GAAP 8.72% 8.57% 1.8 % 9.41% (7.3)%
Tangible equity ratio 8.06% 7.88% 2.3 % 8.60% (6.3)%
Total risk-based capital
ratio 15.82% 14.99% 5.5 % 14.28% 10.8 %
Net Interest Income and Margin
Quarter Ended
----------------------------------
March 31, December 31, March 31,
2011 2010 2010
---------- ---------- ----------
(Dollars in thousands)
Net interest income $ 14,710 $ 15,394 $ 16,632
Interest rate spread 3.05% 3.02% 3.10%
Net interest margin 3.42% 3.39% 3.50%
Net interest margin, fully tax
equivalent 3.49% 3.46% 3.58%
First quarter 2011 net interest income of $14.7 million decreased by $0.7
million from the fourth quarter 2010, and decreased by $1.9 million from
the first quarter 2010. The Company's net interest margin of 3.42% for the
first quarter 2011 reflected an increase of 3 basis points from the fourth
quarter 2010 and a decrease of 8 basis points from the first quarter 2010.
The $0.7 million decrease in net interest income in the first quarter 2011 as compared to the fourth quarter 2010 is due mostly to a 12 basis point decline in the yield on loans coupled with a $70.2 million decrease in average loan balances. These two items contributed to a $1.7 million decline in interest income on loans. Partially offsetting this decrease in loan interest income was a $0.5 million increase in taxable investment security interest income and a $0.6 million decrease in deposit interest expense. The increase in interest income on taxable investments is due mostly to a $25.0 million increase in the average balances of such investments along with a 37 basis point increase in the yield on taxable investments. The decrease in deposit interest expense was due mostly to a $0.5 million decrease in time deposit interest expense due to management's continued strategy to reduce non-core time deposits. The average balance of time deposit accounts decreased by $76.5 million in the first quarter 2011 as compared to the fourth quarter 2010. In particular, during the last week of the first quarter 2011, a $33.6 million brokered time deposit with a rate of 4.25% matured and was not renewed. Although this did not have a significant impact on first quarter 2011 results, it is anticipated to reduce ongoing deposit interest expense. Throughout the remainder of 2011, the Company has approximately $98.2 million of brokered time deposits with a weighted average cost of 2.87% maturing that the Company does not expect to renew.
Net interest income decreased by $1.9 million in the first quarter 2011 as compared to the same quarter in 2010 due mostly to a $5.3 million decrease in loan interest income, partially offset by a $2.1 million decrease in deposit interest expense and a $1.5 million increase in interest on taxable investments. The decline in loan interest income was primarily attributable to a $303.4 million decrease in average loan volume as the Company worked to reduce its overall risk profile. Partially offsetting the impact of the decline in loan volume was an increase in the average balance of taxable investment securities by $190.6 million in the first quarter 2011 as compared to the same quarter in 2010. The cost of deposits decreased from 1.49% in the first quarter 2010 to 1.00% in the first quarter 2011 due primarily to a reduction in time deposit interest expense.
Noninterest Income
The following table presents noninterest income as of the dates indicated:
Quarter Ended
-----------------------------------
March 31, December 31, March 31,
2011 2010 2010
----------- ---------- -----------
(Dollars in thousands)
Noninterest income:
Customer service and other fees $ 2,314 $ 2,430 $ 2,214
Gain on sale of securities 714 216 14
Other-than-temporary-impairment (OTTI)
of securities - (3,500) -
Other 252 256 194
----------- ---------- -----------
Total noninterest income $ 3,280 $ (598) $ 2,422
=========== ========== ===========
The $3.9 million increase in noninterest income in the first quarter 2011 as compared to the fourth quarter 2010 is mostly due to a $3.5 million credit-related other-than-temporary-impairment (OTTI) recognized on a single, non-rated municipal bond in the fourth quarter 2010. This security was evaluated for impairment at the end of the first quarter 2011 and no changes to the initial OTTI was considered necessary on this bond. Additionally, the gain on sale of securities increased by $0.5 million in the first quarter 2011 as compared to the fourth quarter 2010.
The $0.9 million increase in noninterest income between the first quarter 2011 as compared to the same quarter in 2010 is primarily due to a $0.7 million gain on sale of securities.
Noninterest Expense
The following table presents noninterest expense as of the dates indicated:
Quarter Ended
-----------------------------------
March 31, December 31, March 31,
2011 2010 2010
----------- ----------- -----------
(Dollars in thousands)
Noninterest expense:
Salaries and employee benefits $ 6,615 $ 6,456 $ 6,563
Occupancy expense 1,883 1,783 1,890
Furniture and equipment 894 927 976
Amortization of intangible assets 1,028 1,283 1,300
Other real estate owned 763 1,209 2,749
Insurance and assessment 1,225 1,336 1,812
Professional fees 908 824 877
Other general and administrative 2,160 2,611 1,959
----------- ----------- -----------
Total noninterest expense $ 15,476 $ 16,429 $ 18,126
=========== =========== ===========
The $1.0 million decrease in noninterest expense in the first quarter 2011 as compared to the fourth quarter 2010 is due mostly to a $0.4 million decrease in expenses related to other real estate owned and a decrease of $0.5 million in other general and administrative expenses. The decrease in other real estate owned expense is primarily due to a reduction in net write-downs on other real estate owned properties resulting from valuation adjustments and sales. The decrease in other general and administrative expenses is due mostly to various reductions across all items of miscellaneous expense including advertising, data processing, communication and loan collection expenses.
The $2.7 million decrease in noninterest expense in the first quarter 2011 as compared to the same quarter in 2010 is due mostly to a $2.0 million decrease in expenses related to other real estate owned as well as a $0.6 million decrease in insurance and assessment expenses. The decrease in other real estate owned expense is due mostly to a reduction in net write-downs on other real estate owned properties. The decrease in insurance and assessment expenses is due mostly to a decrease in our risk category for FDIC insurance assessment purposes, as well as a decrease in overall deposits. Effective April 1, 2011, the FDIC insurance assessment rules have changed as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act. These new rules change the assessment base from total deposits to average total assets less tangible capital. The assessment rates have been lowered to account for the higher assessment base. The Company expects that these new rules will have a favorable impact on FDIC insurance assessments for the remainder of 2011. Had these new rules been in effect for the first quarter 2011, our FDIC insurance premium would have been reduced by approximately $0.2 million.
Preferred Stock Dividend
Effective February 15, 2011, 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 $1.5 million.
Balance Sheet
March 31, December 31, % March 31, %
2011 2010 Change 2010 Change
---------- ---------- ------ ---------- ------
(Dollars in thousands)
Total assets $1,834,457 $1,870,052 (1.9)% $2,030,331 (9.6)%
Average assets,
quarter-to-date 1,869,896 1,940,513 (3.6)% 2,066,930 (9.5)%
Loans, net of
unearned discount 1,126,083 1,204,580 (6.5)% 1,435,071 (21.5)%
Total deposits 1,438,320 1,462,351 (1.6)% 1,602,884 (10.3)%
Equity ratio - GAAP 8.72% 8.57% 1.8% 9.41% (7.3)%
Tangible equity ratio 8.06% 7.88% 2.3% 8.60% (6.3)%
At March 31, 2011, the Company had total assets of $1.8 billion, which represented a $35.6 million decline as compared to December 31, 2010 and a $195.9 million decrease as compared to March 31, 2010. The decline in assets from December 31, 2010 is mostly due to a $78.5 million decline in loans, net of unearned discount, partially offset by a $43.3 million increase in cash and due from banks over the same time period. This loan decline was due mostly to a $45.1 million decline in commercial loans and a $29.6 million decline in real estate loans. The increase in cash and due from banks is due to proceeds from the reduction of loans being held to fund anticipated reductions in brokered time deposits, purchase additional investment securities and fund future loan growth.
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,
2011 2010 2010
----------- ----------- -----------
(In thousands)
Loans on real estate:
Residential and commercial $ 659,018 $ 680,895 $ 748,135
Construction 50,539 57,351 111,231
Equity lines of credit 49,399 50,289 53,014
Commercial loans 305,627 350,725 448,908
Agricultural loans 12,582 14,413 17,203
Lease financing 3,143 3,143 4,014
Installment loans to individuals 26,942 28,582 34,986
Overdrafts 835 565 612
SBA and other 19,543 20,443 19,396
----------- ----------- -----------
1,127,628 1,206,406 1,437,499
Unearned discount (1,545) (1,826) (2,428)
----------- ----------- -----------
Loans, net of unearned discount $ 1,126,083 $ 1,204,580 $ 1,435,071
=========== =========== ===========
Since March 31, 2010, the ratio of construction, land and land development loans to capital has fallen by 28 percentage points to 77% at March 31, 2011. Similarly, the ratio of commercial real estate loans to capital has fallen by 59 percentage points to 268% at March 31, 2011. These ratios are below the regulatory commercial real estate concentration guidelines of 100% for land and construction loans and 300% for all investor real estate loans, respectively.
The following table sets forth the amounts of our deposits outstanding at
the dates indicated:
March 31, December 31, March 31,
2011 2010 2010
------------- ------------- -------------
(In thousands)
Noninterest-bearing deposits $ 419,335 $ 374,500 $ 363,059
Interest-bearing demand 184,305 178,042 165,315
Money market 357,922 357,036 321,603
Savings 84,501 79,100 74,537
Time 392,257 473,673 678,370
------------- ------------- -------------
Total deposits $ 1,438,320 $ 1,462,351 $ 1,602,884
============= ============= =============
Noninterest-bearing deposits as a percentage of total deposits increased to 29.2% at March 31, 2011, as compared to 25.6% at December 31, 2010 and 22.7% at March 31, 2010.
Deposits, other than time deposits, increased by $57.4 million, at March 31, 2011 as compared to December 31, 2010 and increased by $121.5 million as compared to March 31, 2010. The increases in non-maturity deposits were primarily attributable to the continued success of our business and retail strategic deposit gathering campaign. We plan to continue this deposit campaign, which includes a variety of different advertising media, throughout 2011.
Time deposits continue to decrease primarily as a result of management's efforts to reduce the overall level of higher cost time deposits, including brokered and internet deposits. Total brokered deposits at March 31, 2011 were $133.3 million as compared to $179.9 million at December 31, 2010 and $267.5 million at March 31, 2010. In addition to this $134.2 million decline in brokered deposits over the past twelve months, we also experienced a $60.3 million decline in internet time deposits over the same time period. The remaining decline in time deposits is primarily related to the non-renewal of other higher cost certificates of deposits. Management monitors time deposit maturities and renewals on a daily basis and will raise rates on local time deposits if necessary to grow such deposits.
Borrowings were $163.2 million at March 31, 2011 as compared to $163.2 million at December 31, 2010 and $164.3 million at March 31, 2010. The entire balance of borrowings at each balance sheet date consisted of term advances with the Federal Home Loan Bank.
Regulatory Capital Ratios
All of the regulatory capital ratios are above the highest regulatory
capital threshold of "well-capitalized" at March 31, 2011. The Company's
and the subsidiary bank's actual capital ratios for March 31, 2011 and
December 31, 2010 are presented in the table below:
Minimum
Requirement
Ratio at Ratio at Minimum for "Well
March 31, December 31, Capital Capitalized"
2011 2010 Requirement Institution
--------- ---------- ------------ ------------
Total Risk-Based Capital
Ratio:
Consolidated 15.82% 14.99% 8.00% N/A
Guaranty Bank and Trust
Company 14.96% 14.07% 8.00% 10.00%
Tier 1 Risk-Based
Capital Ratio:
Consolidated 8.79% 8.57% 4.00% N/A
Guaranty Bank and Trust
Company 13.68% 12.80% 4.00% 6.00%
Leverage Ratio:
Consolidated 6.29% 6.25% 4.00% N/A
Guaranty Bank and Trust
Company 9.80% 9.33% 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, 2011, approximately $30.0 million of the subsidiary bank's allowance for loan losses was disallowed from being included in total risk-based capital under the regulatory capital rules, or approximately 2.25% of the subsidiary bank's risk-weighted assets. In addition, approximately $1.3 million of deferred tax assets were disallowed for purposes of computing Tier 1 capital.
Asset Quality
The following table presents selected asset quality data (excluding loans
held for sale) as of the dates indicated:
March December September June March
31, 2011 31, 2010 30, 2010 30, 2010 31, 2010
------- -------- -------- ------- --------
(Dollars in thousands)
Nonaccrual loans, not
restructured $62,650 $ 74,304 $ 65,921 $64,339 $ 70,500
Other nonperforming loans 1,506 3,317 4,420 1,065 558
------- -------- -------- ------- --------
Total nonperforming loans
(NPLs) $64,156 $ 77,621 $ 70,341 $65,404 $ 71,058
Other real estate owned and
foreclosed assets 33,611 22,898 45,700 30,298 30,918
------- -------- -------- ------- --------
Total nonperforming assets
(NPAs) $97,767 $100,519 $116,041 $95,702 $101,976
======= ======== ======== ======= ========
Accruing loans past due 90
days or more (1) $ 1,506 $ 3,317 $ 4,420 $ 1,065 $ 558
======= ======== ======== ======= ========
Accruing loans past due
30-89 days (1) $14,593 $ 21,555 $ 21,876 $33,050 $ 21,956
======= ======== ======== ======= ========
Allowance for loan losses $46,879 $ 47,069 $ 41,898 $46,866 $ 52,015
======= ======== ======== ======= ========
Selected ratios:
NPLs to loans, net of
unearned discount 5.70% 6.44% 5.45% 4.76% 4.95%
NPAs to total assets 5.33% 5.38% 6.00% 4.82% 5.02%
Allowance for loan losses
to NPAs 47.95% 46.83% 36.11% 48.97% 51.01%
Allowance for loan losses
to NPLs 73.07% 60.64% 59.56% 71.66% 73.20%
Allowance for loan losses
to loans, net of unearned
discount 4.16% 3.91% 3.25% 3.41% 3.62%
Loans 30-89 days past due
to loans, net of unearned
discount 1.30% 1.79% 1.70% 2.40% 1.53%
(1)Past due loans include both loans that are past due with respect to
payments and loans that are past due because the loan has matured, and are
in the process of renewal, but continue to be current with respect to
payments.
The $10.7 million increase in other real estate owned at March 31, 2011 as compared to December 31, 2010 is primarily attributable to the addition of $11.9 million related to two similar properties from the same borrower that are expected to be sold during the next two quarters for a full recovery of our cost basis.
The types of nonperforming loans (excluding loans held for sale) as of
March 31, 2011 and December 31, 2010 are as follows:
---------------------------------------------------
Nonperforming Loans
---------------------------------------------------
March 31, 2011 December 31, 2010
------------------------- -------------------------
Loan Related Loan Related
Balance Percent Allowance Balance Percent Allowance
------- ------- --------- ------- ------- --------
(Dollars in thousands)
Residential
Construction, Land
and Land Development $ 6,722 10.5% $ 742 $ 7,254 9.3% $ 295
Other Residential Loans 6,058 9.4% 1,695 7,524 9.7% 583
Commercial and
Industrial Loans 19,057 29.7% 3,608 19,955 25.7% 1,940
Commercial Real Estate 32,287 50.3% 6,091 42,833 55.2% 3,840
Other 32 0.1% - 55 0.1% 1
------- ------- --------- ------- ------- --------
Total $64,156 100.0% $ 12,136 $77,621 100.0% $ 6,659
======= ======= ======== ======= ======= ========
The $13.5 million decrease in nonperforming loans during the first quarter 2011 is mostly due to the foreclosure on two properties related to one loan relationship with an aggregate value of $11.9 million. The specific allowance associated with nonperforming loans increased during the first quarter 2011 primarily due to updated valuations and broker opinions on properties that the Company plans to dispose of in an expeditious manner.
The types of loans included in the accruing loans past due 30-89 days as of
March 31, 2011 and December 31, 2010 are as follows:
----------------------------------
Accruing loans past due 30-89 days
----------------------------------
March 31, 2011 December 31, 2010
----------------------------------
Loan Loan
Balance Percent Balance Percent
-------- ------- -------- -------
(Dollars in thousands)
Residential Construction, Land and
Land Development $ 3,302 22.6% $ 2,770 12.9%
Other Residential Loans 1,220 8.4% 1,444 6.7%
Commercial and Industrial Loans 5,810 39.8% 7,594 35.2%
Commercial Real Estate 1,305 8.9% 4,047 18.8%
Other 2,956 20.3% 5,700 26.4%
-------- ------- -------- -------
Total $ 14,593 100.0% $ 21,555 100.0%
======== ======= ======== =======
Net charge-offs in the first quarter 2011 were $2.2 million as compared to $14.3 million in the fourth quarter 2010 and $4.0 million in the first quarter 2010. The majority of the charge-offs in the first quarter 2011 related to a single loan relationship.
In addition to the $12.1 million of allowance specifically allocated to impaired loans, the Company had partially charged-off $10.0 million of the impaired loans on the balance sheet as of March 31, 2011 in prior periods. These prior period partial charge-offs have reduced the specific component of our allowance for loan losses. The general component of the allowance for loan losses decreased to $34.7 million at March 31, 2011, or 3.09% of loans, net of unearned discount, as compared to $40.4 million, or 3.36% of loans, net of unearned discount, at the end of the previous quarter. The decrease in the general component of the allowance for loan losses during the first quarter is primarily attributable to a decrease in the balance of the loan portfolio subject to a general allowance for loan losses and a declining trend in net charge-offs within the Company's historical look-back period. This caused a decrease in our historical loss component of the allowance for loan losses.
The Company recorded a provision for loan losses in the first quarter 2011 of $2.0 million, as compared to $19.5 million in the fourth quarter 2010 and $4.0 million in the first quarter 2010. The decrease in the provision for loan losses was the result of the reduction in the general component of the allowance for loan losses due mostly to a significant reduction in the level of historical chargeoffs in our look-back period, a decrease in classified assets and a decline in the overall loan portfolio subject to a general allowance for loan losses.
Shares Outstanding
As of March 31, 2011, the Company had 54,034,095 shares of common stock outstanding, including 2,295,836 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 67,504 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, all of 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 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 schedules reconcile the book value per share to the
tangible book value per share and the GAAP equity ratio to the tangible
equity ratio as of the dates indicated:
March 31, December 31, March 31,
2011 2010 2010
----------- ----------- -----------
(Dollars in thousands,
except per share amounts)
Tangible Book Value per Common Share
Total stockholders' equity $ 159,920 $ 160,283 $ 190,980
Less: Preferred share liquidation
preference (67,504) (66,025) (61,787)
----------- ----------- -----------
Stockholders' equity attributable
to common shares 92,416 94,258 129,193
Less: Intangible assets (13,026) (14,054) (17,922)
----------- ----------- -----------
Tangible common equity $ 79,390 $ 80,204 $ 111,271
=========== =========== ===========
Number of common shares outstanding
and to be issued 54,190,662 53,529,950 52,982,035
Book value per common share $ 1.71 $ 1.76 $ 2.44
Tangible book value per common
share $ 1.47 $ 1.50 $ 2.10
Total Stockholders' equity $ 159,920 $ 160,283 $ 190,980
Less: Intangible assets (13,026) (14,054) (17,922)
----------- ----------- -----------
Tangible common equity (after
giving effect to conversion of
preferred stock) $ 146,894 $ 146,229 $ 173,058
=========== =========== ===========
Number of shares of preferred stock
outstanding 67,504 66,025 61,787
Number of shares of common stock
to be issued upon conversion of
preferred stock 37,502,222 36,680,556 34,326,111
Total number of shares of common
stock outstanding and to be
issued (after giving effect to
conversion of preferred stock) 91,692,884 90,210,506 87,308,146
Tangible book value per common
share (after giving effect to
conversion of preferred stock) $ 1.60 $ 1.62 $ 1.98
Tangible Equity Ratio
March 31, December 31, March 31,
2011 2010 2010
----------- ----------- -----------
(Dollars in thousands,
except per share amounts)
Total stockholders' equity $ 159,920 $ 160,283 $ 190,980
Less: Intangible assets (13,026) (14,054) (17,922)
----------- ----------- -----------
Tangible equity $ 146,894 $ 146,229 $ 173,058
=========== =========== ===========
Total assets $ 1,834,457 $ 1,870,052 $ 2,030,331
Less: Intangible assets (13,026) (14,054) (17,922)
=========== =========== ===========
Tangible assets $ 1,821,431 $ 1,855,998 $ 2,012,409
=========== =========== ===========
Equity ratio - GAAP (Total
stockholders' equity / total
assets) 8.72% 8.57% 9.41%
Tangible equity ratio (Tangible
equity / tangible assets) 8.06% 7.88% 8.60%
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,
2011 2010 2010
----------- ----------- -----------
(In thousands)
Assets
Cash and due from banks $ 184,777 $ 141,465 $ 222,723
Securities available for sale, at
fair value 381,310 389,530 219,490
Securities held to maturity 11,284 11,927 15,760
Bank stocks, at cost 16,532 17,211 17,143
----------- ----------- -----------
Total investments 409,126 418,668 252,393
----------- ----------- -----------
Loans, net of unearned discount 1,126,083 1,204,580 1,435,071
Less allowance for loan losses (46,879) (47,069) (52,015)
----------- ----------- -----------
Net loans 1,079,204 1,157,511 1,383,056
----------- ----------- -----------
Loans held for sale 14,200 14,200 11,506
Premises and equipment, net 56,688 57,399 59,587
Other real estate owned and
foreclosed assets 33,611 22,898 30,918
Other intangible assets, net 13,026 14,054 17,922
Other assets 43,825 43,857 52,226
----------- ----------- -----------
Total assets $ 1,834,457 $ 1,870,052 $ 2,030,331
=========== =========== ===========
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing demand $ 419,335 $ 374,500 $ 363,059
Interest-bearing demand 542,227 535,078 486,918
Savings 84,501 79,100 74,537
Time 392,257 473,673 678,370
----------- ----------- -----------
Total deposits 1,438,320 1,462,351 1,602,884
----------- ----------- -----------
Securities sold under agreements to
repurchase and federal funds
purchased 18,303 30,113 18,387
Borrowings 163,215 163,239 164,310
Subordinated debentures 41,239 41,239 41,239
Interest payable and other
liabilities 13,460 12,827 12,531
----------- ----------- -----------
Total liabilities 1,674,537 1,709,769 1,839,351
----------- ----------- -----------
Stockholders' equity:
Preferred stock and Additional
paid-in capital - Preferred stock 66,297 64,818 60,580
Common stock and Additional
paid-in capital - Common stock 619,706 619,509 618,779
Shares to be issued for deferred
compensation obligations 237 237 237
Accumulated deficit (420,534) (419,562) (385,804)
Accumulated other comprehensive
income (loss) (3,275) (2,220) (341)
Treasury Stock (102,511) (102,499) (102,471)
----------- ----------- -----------
Total stockholders' equity 159,920 160,283 190,980
----------- ----------- -----------
Total liabilities and
stockholders' equity $ 1,834,457 $ 1,870,052 $ 2,030,331
=========== =========== ===========
GUARANTY BANCORP AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
Three Months Ended
March 31,
----------------------
2011 2010
---------- ----------
(In thousands, except
share and per share
data)
Interest income:
Loans, including fees $ 15,534 $ 20,784
Investment securities:
Taxable 3,065 1,516
Tax-exempt 489 720
Dividends 166 185
Federal funds sold and other 89 116
---------- ----------
Total interest income 19,343 23,321
---------- ----------
Interest expense:
Deposits 2,629 4,713
Securities sold under agreement to repurchase and
federal funds purchased 24 43
Borrowings 1,289 1,301
Subordinated debentures 691 632
---------- ----------
Total interest expense 4,633 6,689
---------- ----------
Net interest income 14,710 16,632
Provision for loan losses 2,000 4,000
---------- ----------
Net interest income, after provision for loan
losses 12,710 12,632
Noninterest income:
Customer service and other fees 2,314 2,214
Gain on sale of securities 714 14
Other 252 194
---------- ----------
Total noninterest income 3,280 2,422
Noninterest expense:
Salaries and employee benefits 6,615 6,563
Occupancy expense 1,883 1,890
Furniture and equipment 894 976
Amortization of intangible assets 1,028 1,300
Other real estate owned, net 763 2,749
Insurance and assessments 1,225 1,812
Professional fees 908 877
Other general and administrative 2,160 1,959
---------- ----------
Total noninterest expense 15,476 18,126
---------- ----------
Income (loss) before income taxes 514 (3,072)
Income tax benefit - (1,227)
---------- ----------
Net Income (loss) 514 (1,845)
Preferred stock dividends (1,486) (1,360)
---------- ----------
Net loss applicable to common stockholders $ (972) $ (3,205)
========== ==========
Loss per common share-basic: $ (0.02) $ (0.06)
Loss per common share-diluted: (0.02) (0.06)
Weighted average common shares outstanding-basic 51,775,475 51,607,044
Weighted average common shares outstanding-diluted 51,775,475 51,607,044
GUARANTY BANCORP AND SUBSIDIARIES
Unaudited Consolidated Average Balance Sheets
QTD Average
---------------------------------
March 31, December 31, March 31,
2011 2010 2010
---------- ----------- ----------
(In thousands)
Assets
Interest earning assets
Loans, net of unearned discount $1,189,220 $ 1,259,392 $1,492,630
Securities 416,991 402,101 245,518
Other earning assets 136,063 141,025 190,302
---------- ----------- ----------
Average earning assets 1,742,274 1,802,518 1,928,450
Other assets 127,622 137,995 138,480
---------- ----------- ----------
Total average assets $1,869,896 $ 1,940,513 $2,066,930
========== =========== ==========
Liabilities and Stockholders' Equity
Average liabilities:
Average deposits:
Noninterest-bearing deposits $ 400,979 $ 374,004 $ 352,937
Interest-bearing deposits 1,067,156 1,137,216 1,282,119
---------- ----------- ----------
Average deposits 1,468,135 1,511,220 1,635,056
Other interest-bearing liabilities 226,602 228,375 224,856
Other liabilities 14,123 14,604 13,105
---------- ----------- ----------
Total average liabilities 1,708,860 1,754,199 1,873,017
Average stockholders' equity 161,036 186,314 193,913
---------- ----------- ----------
Total average liabilities and
stockholders' equity $1,869,896 $ 1,940,513 $2,066,930
========== =========== ==========
GUARANTY BANCORP
Unaudited Credit Quality Measures
Quarter Ended
------------------------------------------------
March 31, December September June 30, March 31,
2011 31, 2010 30, 2010 2010 2010
-------- -------- -------- -------- --------
(Dollars in thousands)
Nonaccrual loans and
leases, not restructured $ 62,650 $ 74,304 $ 65,921 $ 64,339 $ 70,500
Other nonperforming loans 1,506 3,317 4,420 1,065 558
-------- -------- -------- -------- --------
Total nonperforming
loans $ 64,156 $ 77,621 $ 70,341 $ 65,404 $ 71,058
-------- -------- -------- -------- --------
Other real estate owned
and foreclosed assets 33,611 22,898 45,700 30,298 30,918
-------- -------- -------- -------- --------
Total nonperforming
assets $ 97,767 $100,519 $116,041 $ 95,702 $101,976
======== ======== ======== ======== ========
Impaired loans $ 64,156 $ 77,621 $ 70,341 $ 65,404 $ 71,058
Allocated allowance for
loan losses (12,136) (6,659) (3,539) (3,716) (10,802)
-------- -------- -------- -------- --------
Net investment in
impaired loans $ 52,020 $ 70,962 $ 66,802 $ 61,688 $ 60,256
======== ======== ======== ======== ========
Accruing loans past due
90 days or more $ 1,506 $ 3,317 $ 4,420 $ 1,065 $ 558
======== ======== ======== ======== ========
Accruing loans past due
30-89 days $ 14,593 $ 21,555 $ 21,876 $ 33,050 $ 21,956
======== ======== ======== ======== ========
Charged-off loans $ 2,851 $ 14,635 $ 7,953 $ 13,918 $ 4,271
Recoveries (661) (306) (485) (369) (295)
-------- -------- -------- -------- --------
Net charge-offs $ 2,190 $ 14,329 $ 7,468 $ 13,549 $ 3,976
======== ======== ======== ======== ========
Provision for loan losses $ 2,000 $ 19,500 $ 2,500 $ 8,400 $ 4,000
======== ======== ======== ======== ========
Allowance for loan losses $ 46,879 $ 47,069 $ 41,898 $ 46,866 $ 52,015
======== ======== ======== ======== ========
Allowance for loan losses
to loans, net of
unearned discount 4.16% 3.91% 3.25% 3.41% 3.62%
Allowance for loan losses
to nonaccrual loans 74.83% 63.35% 63.56% 72.84% 73.78%
Allowance for loan losses
to nonperforming assets 47.95% 46.83% 36.11% 48.97% 51.01%
Allowance for loan losses
to nonperforming loans 73.07% 60.64% 59.56% 71.66% 73.20%
Nonperforming assets to
loans, net of unearned
discount, and other
real estate owned 8.43% 8.19% 8.69% 6.81% 6.96%
Nonperforming assets to
total assets 5.33% 5.38% 6.00% 4.82% 5.02%
Nonaccrual loans to loans,
net of unearned discount 5.56% 6.17% 5.11% 4.68% 4.91%
Nonperforming loans to
loans, net of unearned
discount 5.70% 6.44% 5.45% 4.76% 4.95%
Annualized net charge-offs
to average loans 0.75% 4.51% 2.19% 3.83% 1.08%
Contact Information: Contact Information For more information, please contact: Daniel M. Quinn President & Chief Executive Officer Guaranty Bancorp 1331 Seventeenth Street, Suite 345 Denver, CO 80202 303/313-6763 Paul W. Taylor E.V.P., Chief Financial & Operating Officer & Secretary Guaranty Bancorp 1331 Seventeenth Street, Suite 345 Denver, CO 80202 303/293-5563