Guaranty Bancorp Announces 2015 Third Quarter Financial

DENVER, CO--(Marketwired - October 14, 2015) -

Expanded quarterly net income by 28.5% as compared to the third quarter 2014
Increased quarterly return on average assets to 1.05% as compared to 0.91% in the third quarter 2014
Grew loans by 16.5%, as compared to September 30, 2014
Increased core deposits by 9.0%, as compared to September 30, 2014
Improved the efficiency ratio to 58.8% during the quarter as compared to 63.7% in the third quarter 2014

Guaranty Bancorp (NASDAQ: GBNK) ("we", "our" or "the Company"), a community bank holding company based in Colorado, today announced third quarter 2015 net income of $6.0 million or $0.28 per basic and diluted common share, an increase of $1.3 million or $0.06 per basic and diluted common share as compared to the third quarter 2014. For the nine months ended September 30, 2015, net income was $16.6 million or $0.79 per basic common share and $0.78 per diluted common share, an increase of $4.3 million or $0.20 per basic and diluted common share as compared to the same period in 2014.

"Our consistently strong operating metrics were recognized for the second consecutive year by Sandler O'Neill in their Bank & Thrift Sm-All Star list," said Paul W. Taylor, President and CEO. "We are proud to be named one of the top 34 performing small-cap banks and thrifts in the United States and we were the only Colorado bank to receive this recognition. Our quarterly net income growth of 28.5%, as compared to the same quarter in 2014, resulted in a 14 basis point improvement in quarterly return on average assets to 1.05%. This improved profitability was the result of diligent execution of our business strategy. The sustained core deposit growth of 9.0% and strong loan growth of 16.5% for the twelve months ended September 30, 2015 reflects the confidence businesses have in the Colorado economy and the solid relationships we continue to develop."

The Company's net income increased $1.3 million for the third quarter 2015 as compared to the same quarter in the prior year, due to a $1.3 million improvement in interest income, a $0.3 million decrease in interest expense and a $0.3 million decrease in noninterest expense. These improvements were partially offset by an increase in income taxes. The $1.3 million increase in interest income was primarily due to a $240.2 million increase in average loans for the quarter ended September 30, 2015 as compared to the same quarter in 2014. The $0.3 million decrease in interest expense during the third quarter 2015, as compared to the same quarter in 2014, was primarily driven by the prepayment of $90.0 million of Federal Home Loan Bank (FHLB) term advances during the fourth quarter 2014. The $0.3 million decrease in noninterest expense was mostly due to a decrease in other real estate owned (OREO) expenses and a decrease in intangible asset amortization expense.

For the nine months ended September 30, 2015, net income increased 34.7% or $4.3 million, as compared to the same period in 2014, due to a $4.7 million increase in interest income, a $1.3 million decrease in interest expense, and a $1.1 million increase in noninterest income. These improvements were partially offset by a $0.4 million increase in noninterest expense and a $2.3 million increase in income taxes due to higher pretax income. The $4.7 million increase in interest income was the result of a $219.2 million increase in average loans for the nine months ended September 30, 2015 as compared to the same period in 2014. The $1.3 million decrease in interest expense was primarily related to the prepayment of $90.0 million of FHLB term advances, as discussed above. The $1.1 million increase in noninterest income was mostly due to a $0.8 million increase in investment management and trust income, a $0.4 million increase in bank owned life insurance (BOLI) income and a $0.3 million increase in gains on sales of SBA loans during the nine months ended September 30, 2015 as compared to the same period in 2014. The $0.4 million increase in noninterest expense was mostly due to increases in salary and benefit expense related to the creation of new positions within the Company during the nine months ended September 30, 2015 as compared to the same period in 2014.

Key Financial Measures

Income Statement


		Three Months Ended									Nine Months Ended
		September 30,			June 30,			September 30,			September 30,			September 30,
		2015			2015			2014			2015			2014
	(Dollars in thousands, except per share amounts)
Net income	$	6,002		$	5,477		$	4,671		$	16,563		$	12,297
Earnings per common share -- basic	$	0.28		$	0.26		$	0.22		$	0.79		$	0.59
Return on average assets		1.05	%		1.00	%		0.91	%		1.01	%		0.83	%
Return on average equity		10.99	%		10.29	%		9.09	%		10.37	%		8.27	%
Net interest margin		3.59	%		3.67	%		3.67	%		3.70	%		3.67	%
Efficiency ratio ⁽¹⁾		58.75	%		59.77	%		63.68	%		60.42	%		66.06	%
________________

⁽¹⁾ The "efficiency ratio" equals noninterest expense adjusted to exclude amortization of intangible assets, prepayment penalties on long-term debt and impairment of long-lived assets divided by the sum of tax equivalent net interest income and tax equivalent noninterest income. To calculate tax equivalent net interest income and noninterest income, the interest earned on tax exempt loans and investment securities and the income earned on bank-owned life insurance has been adjusted to reflect the amount that would have been earned had these investments been subject to normal income taxation.

Balance Sheet


		September 30,			December 31,		Percent			September 30,		Percent
		2015			2014		Change			2014		Change
	(Dollars in thousands, except per share amounts)
Total investments	$	433,299		$	449,482		(3.6	)%	$	456,118		(5.0	)%
Total loans, net of deferred costs and fees		1,726,151			1,541,434		12.0	%		1,482,268		16.5	%
Allowance for loan losses		(22,890	)		(22,490	)	1.8	%		(22,350	)	2.4	%
Total assets		2,285,630			2,124,778		7.6	%		2,077,939		10.0	%
Total deposits		1,847,329			1,685,324		9.6	%		1,662,598		11.1	%
Book value per common share		10.07			9.57		5.2	%		9.46		6.4	%
Tangible book value per common share		9.81			9.24		6.2	%		9.10		7.8	%
Equity ratio -- GAAP		9.57	%		9.74	%	(1.7	)%		9.88	%	(3.1	)%
Tangible common equity ratio		9.35	%		9.43	%	(0.8	)%		9.54	%	(2.0	)%
Total risk-based capital ratio		13.39	%		13.85	%	(3.3	)%		14.25	%	(6.0	)%
Assets under management and administration	$	686,662		$	683,138		0.5	%	$	675,431		1.7	%

Net Interest Income and Margin


			Three Months Ended									Nine Months Ended
			September 30,			June 30,			September 30,			September 30,			September 30,
			2015			2015			2014			2015			2014
		(Dollars in thousands)
Net interest income		$	19,406		$	18,940		$	17,809		$	57,123		$	51,133
Average earning assets			2,141,807			2,069,468			1,927,474			2,064,587			1,862,369
Interest rate spread			3.45	%		3.54	%		3.47	%		3.56	%		3.47	%
Net interest margin			3.59	%		3.67	%		3.67	%		3.70	%		3.67	%
Net interest margin, fully tax equivalent			3.67	%		3.75	%		3.75	%		3.78	%		3.76	%
Average cost of interest-bearing liabilities
	(including noninterest-bearing deposits)		0.28	%		0.25	%		0.37	%		0.26	%		0.38	%
Average cost of deposits
	(including noninterest-bearing deposits)		0.19	%		0.18	%		0.16	%		0.18	%		0.15	%

During the third quarter 2015, net interest income increased $1.6 million, as compared to the same quarter in the prior year, due to a $1.3 million increase in interest income and a $0.3 million decrease in interest expense. Interest income increased mostly due to a 16.4% increase in average loan balances. Interest expense decreased primarily due to the prepayment of $90 million in FHLB term advances in the fourth quarter 2014.

Net interest income increased $0.5 million, as compared to the second quarter 2015, due to a $0.7 million increase in interest income, partially offset by a $0.2 million increase in interest expense. The increase in interest income during the third quarter 2015, as compared to the second quarter 2015, was due to an $84.8 million increase in average loan balances, partially offset by lower loan yields. The increase in interest expense during the third quarter 2015, as compared to the second quarter 2015, was due to an $84.8 million increase in average interest-bearing deposits required to fund loan growth. During the third quarter 2015, the net interest margin decreased eight basis points, as compared to the second quarter 2015, mostly due to a decline in loan yield.

For the nine months ended September 30, 2015, net interest income increased $6.0 million, as compared to the same period in 2014, due to a $4.7 million increase in interest income and a $1.3 million decrease in interest expense. The year-to-date increase in interest income was driven by a $219.2 million increase in average loans, compared to the same period in 2014. The decline in interest expense during the first nine months of 2015, as compared to the same period in 2014, was primarily due to the prepayment of $90.0 million of FHLB term advances in the fourth quarter 2014. During the nine months ended September 30, 2015, the net interest margin increased three basis points to 3.70% as compared to 3.67% for the same period in 2014. The increase in the net interest margin was mostly due to the decrease in the cost of average interest-bearing liabilities due to the prepayment of FHLB term advances, as discussed above.

Noninterest Income

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


			Three Months Ended						Nine Months Ended
			September 30, 2015		June 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
		(In thousands)
Noninterest income:
	Deposit service and other fees	$	2,309	$	2,338	$	2,290	$	6,682	$	6,708
	Investment management and trust		1,292		1,338		1,279		3,964		3,149
	Increase in cash surrender value of life insurance		447		461		291		1,316		877
	Gain on sale of securities		-		-		3		-		28
	Gain on sale of SBA loans		232		169		186		681		351
	Other		119		98		289		275		720
	Total noninterest income	$	4,399	$	4,404	$	4,338	$	12,918	$	11,833

Third quarter 2015 noninterest income was consistent with second quarter 2015 noninterest income of $4.4 million and increased $0.1 million as compared to $4.3 million in the third quarter 2014.

For the nine months ended September 30, 2015, noninterest income increased $1.1 million to $12.9 million as compared to $11.8 million for the same period in 2014. The increase in noninterest income was due to a $0.8 million increase in investment management and trust income, a $0.4 million increase in BOLI income and a $0.3 million increase in gains on sale of SBA loans. The increase in BOLI income was due to the purchase of an additional BOLI subsequent to September 30, 2014. The increases in noninterest income were partially offset by decreases in other noninterest income related to customer interest rate swap income for the nine months ended September 30, 2015 as compared to the same period in the prior year.

Noninterest Expense

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


			Three Months Ended						Nine Months Ended
			September 30, 2015		June 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
			(In thousands)
Noninterest expense:
	Salaries and employee benefits	$	8,318	$	7,999	$	8,135	$	24,921	$	24,332
	Occupancy expense		1,487		1,630		1,583		4,814		4,764
	Furniture and equipment		740		736		693		2,206		2,061
	Amortization of intangible assets		495		496		670		1,486		1,852
	Other real estate owned, net		(31)		54		147		64		225
	Insurance and assessment		604		626		594		1,795		1,779
	Professional fees		838		853		890		2,520		2,593
	Impairment of long-lived assets		-		122		-		122		110
	Other general and administrative		2,415		2,440		2,447		7,164		6,996
	Total noninterest expense	$	14,866	$	14,956	$	15,159	$	45,092	$	44,712

Noninterest expense decreased $0.1 million to $14.9 million, as compared to $15.0 million in the second quarter 2015, and decreased $0.3 million as compared to the same quarter in 2014. The Company's tax equivalent efficiency ratio improved 102 basis points to 58.75% for the quarter ended September 30, 2015, as compared to 59.77% for the quarter ended June 30, 2015, and improved 493 basis points as compared to 63.68% for the quarter ended September 30, 2014.

For the nine months ended September 30, 2015, noninterest expense was $45.1 million as compared to $44.7 million for the same period in 2014. The increase in noninterest expense for the first nine months of 2015, as compared to the same period in 2014, was primarily due to a $0.6 million increase in salaries and employee benefits mostly due to the creation of new positions within our wealth management, healthcare lending, equipment finance lending and compliance groups.

Balance Sheet


		September 30,			December 31,		Percent			September 30,		Percent
		2015			2014		Change			2014		Change
		(Dollars in thousands)
Total assets	$	2,285,630		$	2,124,778		7.6	%	$	2,077,939		10.0	%
Average assets, quarter-to-date		2,268,603			2,067,371		9.7	%		2,043,756		11.0	%
Total loans, net of deferred costs and fees		1,726,151			1,541,434		12.0	%		1,482,268		16.5	%
Total deposits		1,847,329			1,685,324		9.6	%		1,662,598		11.1	%

Equity ratio -- GAAP		9.57	%		9.74	%	(1.7	)%		9.88	%	(3.1	)%
Tangible common equity ratio		9.35	%		9.43	%	(0.8	)%		9.54	%	(2.0	)%

At September 30, 2015, the Company had total assets of $2.3 billion, reflecting a $160.9 million increase as compared to December 31, 2014 and a $207.7 million increase as compared to September 30, 2014. The increase in total assets during the nine months ended September 30, 2015 was mostly due to a $184.7 million increase in net loans. The growth in net loans for the first nine months of 2015 was funded by $162.0 million in deposit growth and a $16.2 million decline in investments. The increase in total assets, as compared to September 30, 2014, was due to a $243.9 million increase in net loans and a $16.4 million increase in BOLI, funded by a $184.7 million increase in deposits, a $22.9 million decrease in cash and a $22.8 million decrease in investments.

The following table sets forth the amount of loans outstanding at the dates indicated:


				September 30,		June 30,			December 31,			September 30,
				2015		2015			2014			2014
				(In thousands)
Loans held for sale			$	8	$	423		$	-		$	-
Commercial and residential real estate				1,196,209		1,146,508			1,049,315			1,001,174
Construction				92,473		85,516			66,634			89,787
Commercial				336,414		333,860			324,057			286,545
Agricultural				10,991		12,380			10,625			11,986
Consumer				63,517		61,870			60,155			60,492
SBA				25,911		26,975			30,025			32,107
Other				510		1,299			1,002			773
	Total gross loans			1,726,033		1,668,831			1,541,813			1,482,864
		Deferred costs and fees		118		(173	)		(379	)		(596	)
	Loans, net of deferred costs and fees		$	1,726,151	$	1,668,658		$	1,541,434		$	1,482,268

The following table presents the changes in our loan balances at the dates indicated:


			September 30,			June 30,			March 31,			December 31,			September 30,
			2015			2015			2015			2014			2014
			(In thousands)
Beginning balance		$	1,668,658		$	1,555,154		$	1,541,434		$	1,482,268		$	1,438,089
New credit extended			149,502			169,687			95,738			106,718			93,215
Net existing credit advanced			60,784			83,792			57,900			71,815			78,829
Net pay-downs and maturities			(152,279	)		(138,770	)		(141,983	)		(119,854	)		(127,633	)
Charge-offs and other			(514	)		(1,205	)		2,065			487			(232	)
	Loans, net of deferred costs and fees	$	1,726,151		$	1,668,658		$	1,555,154		$	1,541,434		$	1,482,268

Net change -- loans outstanding		$	57,493		$	113,504		$	13,720		$	59,166		$	44,179

During the third quarter 2015, loans net of deferred costs and fees increased $57.5 million which was comprised of a $49.7 million increase in commercial and residential real estate loans, a $7.0 million increase in construction loans and a $2.6 million increase in commercial loans. Third quarter 2015 net loan growth consisted of $210.3 million in new loans and net existing credit advanced, partially offset by $152.3 million in net loan pay-downs and maturities. In addition to contractual loan principal payments and maturities, the third quarter 2015 included $23.5 million in pay-downs related to revolving line of credit fluctuations, $21.2 million in early payoffs related to the sale of the borrower's assets, $19.0 million in pay-offs due to our strategic decision to not match certain financing terms offered by competitors, and $9.3 million in pay-downs of energy-related loans.

During the third quarter 2015, we continued to proactively reduce our direct exposure to the energy industry, realizing reductions of 26.5% or $16.6 million in commitments and 29.2% or $9.3 million in outstanding loan balances. As compared to December 31, 2014, our direct exposure to the energy industry has declined by 46.0% or $39.2 million in commitments and by 44.1% or $24.2 million in outstanding loan balances. Our current energy portfolio consists of eight relationships totaling $22.5 million in outstanding loan balances, which is less than 2.0% of our total loan portfolio. At September 30, 2015, the energy portfolio was comprised primarily of exploration and production loans, with relatively equal exposure to oil and natural gas.

For the twelve months ended September 30, 2015, loans net of deferred costs and fees increased by $243.9 million, or 16.5%. Net loan growth was comprised of a $195.0 million increase in commercial and residential real estate loans and a $49.9 million increase in commercial loans. The growth in loans was the result of development of new customer relationships and growth in existing customer relationships. The utilization rate on commercial lines of credit was 39.7% at September 30, 2015 as compared to 41.0% at both December 31, 2014 and September 30, 2014.

At September 30, 2015, 1-4 family residential real estate loans grew $44.8 million to $302.9 million, as compared to $258.1 million at September 30, 2014, mostly due to growth in jumbo mortgage loans.

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


		September 30,		June 30,		March 31,		December 31,		September 30,
		2015		2015		2014		2014		2014
		(In thousands)
Noninterest-bearing demand	$	683,797	$	622,364	$	659,765	$	654,051	$	617,704
Interest-bearing demand and NOW		405,092		379,495		356,573		326,748		365,538
Money market		369,023		362,798		370,705		374,063		357,368
Savings		144,602		139,305		141,948		138,588		128,931
Time		244,815		238,037		192,890		191,874		193,057
Total deposits	$	1,847,329	$	1,741,999	$	1,721,881	$	1,685,324	$	1,662,598

At September 30, 2015, non-maturing deposits were $1.6 billion, an increase of $109.1 million as compared to the fourth quarter 2014, and an increase of $133.0 million, or 9.0%, as compared to the third quarter 2014. At September 30, 2015, noninterest-bearing deposits as a percentage of total deposits were 37.0%, as compared to 38.8% at December 31, 2014 and 37.2% at September 30, 2014.

At September 30, 2015, securities sold under agreements to repurchase were $30.2 million, a decrease of $3.4 million as compared to December 31, 2014, and an increase of $6.5 million as compared to September 30, 2014.

Total FHLB borrowings were $151.3 million at September 30, 2015 consisting of $56.3 million of overnight advances on our line of credit and $95.0 million in term advances. At December 31, 2014, total FHLB borrowings consisted of $140.3 million in overnight advances and $20.0 million in term advances.

Regulatory Capital Ratios

The following table provides the capital ratios of the Company and our subsidiary bank, Guaranty Bank and Trust Company ("Bank") as of the dates presented, along with the applicable regulatory capital requirements:


		Ratio at September 30, 2015		Ratio at December 31, 2014		Minimum Capital Requirement at September 30, 2015		Minimum Requirement for "Well-Capitalized" Institution at September 30, 2015
Common Equity Tier 1 Risk-Based Capital Ratio
	Consolidated	11.05	%	N/A		4.50	%	N/A
	Guaranty Bank and Trust Company	11.94	%	N/A		4.50	%	6.50	%

Tier 1 Risk-Based Capital Ratio
	Consolidated	12.23	%	12.60	%	6.00	%	N/A
	Guaranty Bank and Trust Company	11.94	%	12.33	%	6.00	%	8.00	%

Total Risk-Based Capital Ratio
	Consolidated	13.39	%	13.85	%	8.00	%	N/A
	Guaranty Bank and Trust Company	13.10	%	13.58	%	8.00	%	10.00	%

Leverage Ratio
	Consolidated	10.75	%	11.10	%	4.00	%	N/A
	Guaranty Bank and Trust Company	10.50	%	10.86	%	4.00	%	5.00	%

At September 30, 2015, all our regulatory capital ratios remain well above minimum requirements for a "well-capitalized" institution. Our ratios decreased as compared to our ratios at December 31, 2014 primarily due to an increase in risk-weighted assets during the period, driven by loan growth during the first nine months of 2015 as well as new risk-weighting requirements under the final rule on Enhanced Regulatory Capital Standards, commonly referred to as Basel III, which became effective in the first quarter of 2015.

Asset Quality

The following table presents select asset quality data as of the dates indicated:


			September 30,			June 30,			March 31,			December 31,			September 30,
			2015			2015			2015			2014			2014
			(Dollars in thousands)
Nonaccrual loans and leases		$	14,512		$	13,192		$	13,266		$	12,617		$	13,237
Accruing loans past due 90 days or more ⁽¹⁾			-			-			-			-			-

Total nonperforming loans (NPLs)		$	14,512		$	13,192		$	13,266		$	12,617		$	13,237
Other real estate owned and foreclosed assets			1,371			1,503			2,175			2,175			3,526

Total nonperforming assets (NPAs)		$	15,883		$	14,695		$	15,441		$	14,792		$	16,763

Total classified assets		$	31,208		$	31,762		$	28,637		$	27,271		$	32,578

Accruing loans past due 30-89 days ⁽¹⁾		$	3,461		$	1,487		$	8,368		$	1,381		$	458

Charged-off loans		$	(75	)	$	(48	)	$	(49	)	$	(73	)	$	(80	)
Recoveries			101			285			82			214			278
	Net recoveries	$	26		$	237		$	33		$	141		$	198

Provision (credit) for loan losses		$	14		$	113		$	(23	)	$	(1	)	$	(3	)

Allowance for loan losses		$	22,890		$	22,850		$	22,500		$	22,490		$	22,350

Selected ratios:
NPLs to loans, net of deferred costs and fees ⁽²⁾			0.84	%		0.79	%		0.85	%		0.82	%		0.89	%
NPAs to total assets			0.69	%		0.65	%		0.72	%		0.70	%		0.81	%
Allowance for loan losses to NPLs			157.73	%		173.21	%		169.61	%		178.25	%		168.84	%
Allowance for loan losses to loans, net of deferred costs and fees ⁽²⁾			1.33	%		1.37	%		1.45	%		1.46	%		1.51	%
Loans 30-89 days past due to loans, net of deferred costs and fees ⁽²⁾			0.20	%		0.09	%		0.54	%		0.09	%		0.03	%
Texas ratio ⁽³⁾			6.09	%		5.80	%		6.07	%		6.01	%		6.89	%
Classified asset ratio ⁽⁴⁾			13.51	%		13.87	%		11.26	%		11.08	%		13.39	%

⁽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 is in the process of renewal, but continues to be current with respect to payments.
⁽²⁾Loans, net of deferred costs and fees, exclude loans held for sale.
⁽³⁾Texas ratio is defined as total NPAs divided by subsidiary bank only Tier 1 Capital plus allowance for loan losses.
⁽⁴⁾Classified asset ratio is defined as total classified assets to subsidiary bank only Tier 1 Capital plus allowance for loan losses.

The following tables summarize past due loans held for investment by class as of the dates indicated:


September 30, 2015		30-89 Days Past Due		90 Days + Past Due and Still Accruing		Nonaccrual		Total Nonaccrual and Past Due		Total Loans, Held for Investment
		(In thousands)
Commercial and residential real estate	$	1,094	$	-	$	12,005	$	13,099	$	1,196,291
Construction		-		-		986		986		92,479
Commercial		1,987		-		914		2,901		336,437
Consumer		149		-		471		620		63,521
Other		231		-		136		367		37,415
Total	$	3,461	$	-	$	14,512	$	17,973	$	1,726,143


December 31, 2014		30-89 Days Past Due		90 Days + Past Due and Still Accruing		Nonaccrual		Total Nonaccrual and Past Due		Total Loans, Held for Investment
		(In thousands)
Commercial and residential real estate	$	92	$	-	$	11,872	$	11,964	$	1,049,057
Construction		-		-		-		-		66,618
Commercial		1,080		-		18		1,098		323,977
Consumer		66		-		559		625		60,140
Other		143		-		168		311		41,642
Total	$	1,381	$	-	$	12,617	$	13,998	$	1,541,434

During the third quarter 2015, nonperforming assets increased by $1.2 million from June 30, 2015 and decreased $0.9 million from September 30, 2014. The increase in nonperforming assets during the third quarter 2015 as compared to the second quarter 2015 was primarily the result of the downgrade of two loans to nonaccrual. Nonperforming loans at September 30, 2015 include one out-of-state loan participation with a balance of $9.5 million.

At September 30, 2015, classified assets represent 13.5% of bank-level Tier 1 risk-based capital plus allowance for loan losses as compared to 13.9% at June 30, 2015 and 13.4% at September 30, 2014.

Net recoveries in the third quarter 2015 were less than $0.1 million as compared to net recoveries of $0.2 million in the second quarter 2015 and net recoveries of $0.2 million in the third quarter 2014. During the quarter ended September 30, 2015, the Bank recorded an immaterial provision for loan losses as compared to a $0.1 million provision recorded in the second quarter 2015 and the immaterial credit provision for loan losses recorded in the third quarter 2014. The Bank considered recoveries, historical charge-offs, level of nonperforming loans, loan growth and other factors when determining the adequacy of the allowance for loan losses and the resulting amount of loan loss provision to be recognized during the quarter.

Shares Outstanding

As of September 30, 2015, the Company had 21,728,202 shares of common stock outstanding, consisting of 20,709,202 shares of voting common stock, of which 651,275 shares were in the form of unvested stock awards, and 1,019,000 shares of non-voting common stock.

Non-GAAP Financial Measures

The Company discloses certain non-GAAP financial measures related to tangible assets, including tangible book value and tangible common equity, pre-tax operating earnings adjusted for (if any) provision (credit) for loan losses, OREO expenses, debt termination expense, impairments of long-lived assets, acquisition, reorganization and integration costs and securities gains and losses.

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 schedule reconciles the non-GAAP pre-tax operating earnings to GAAP net income before income taxes as of the dates indicated:



		Three Months Ended									Nine Months Ended
			September 30,			June 30,		September 30,			September 30,		September 30,
			2015			2015		2014			2015		2014
			(Dollars in thousands, except per share amounts)
Income before income taxes		$	8,925		$	8,275	$	6,991		$	24,845	$	18,239
Adjusted for:
	Provision (credit) for loan losses		14			113		(3	)		104		15
	Expenses (gains) related to other real estate owned, net		(31	)		54		147			64		225
	Impairment of long-lived assets		-			122		-			122		110
	Gain on sale of securities		-			-		(3	)		-		(28	)
Pre-tax operating earnings		$	8,908		$	8,564	$	7,132		$	25,135	$	18,561

Weighted basic average common shares outstanding:			21,076,380			21,070,199		20,966,179			21,061,445		20,954,046
Fully diluted average common shares outstanding:			21,224,989			21,200,438		21,089,221			21,215,435		21,070,895

Pre-tax operating earnings per common share -- basic:		$	0.42		$	0.41	$	0.34		$	1.19	$	0.89
Pre-tax operating earnings per common share -- diluted:		$	0.42		$	0.40	$	0.34		$	1.18	$	0.88

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:


Tangible Book Value per Common Share
		September 30,			December 31,			September 30,
		2015			2014			2014
		(Dollars in thousands, except per share amounts)
Total stockholders' equity	$	218,803		$	206,939		$	205,361
Less: Intangible assets		(5,668	)		(7,154	)		(7,808	)
Tangible common equity	$	213,135		$	199,785		$	197,553

Number of common shares outstanding		21,728,202			21,628,873			21,714,115

Book value per common share	$	10.07		$	9.57		$	9.46
Tangible book value per common share	$	9.81		$	9.24		$	9.10


Tangible Common Equity Ratio
		September 30,			December 31,			September 30,
		2015			2014			2014
		(Dollars in thousands)
Total stockholders' equity	$	218,803		$	206,939		$	205,361
Less: Intangible assets		(5,668	)		(7,154	)		(7,808	)
Tangible common equity	$	213,135		$	199,785		$	197,553

Total assets	$	2,285,630		$	2,124,778		$	2,077,939
Less: Intangible assets		(5,668	)		(7,154	)		(7,808	)
Tangible assets	$	2,279,962		$	2,117,624		$	2,070,131

Equity ratio -- GAAP (total stockholders' equity / total assets)		9.57	%		9.74	%		9.88	%
Tangible common equity ratio (tangible common equity / tangible assets)		9.35	%		9.43	%		9.54	%

About Guaranty Bancorp

Guaranty Bancorp is a $2.3 billion financial services company that operates as the bank holding company for Guaranty Bank and Trust Company, a premier Colorado community bank. The Bank provides comprehensive financial solutions to consumers and small to medium-sized businesses that value local and personalized service. In addition to loans and depository services, the Bank also offers wealth management solutions, including trust and investment management services. 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 the Company's operations; general economic and business conditions in those areas in which the Company operates, including the impact of global and national economic conditions on our local economy; demographic changes; competition; fluctuations in interest rates; continued ability to attract and employ qualified personnel; ability to receive regulatory approval for the bank subsidiary to declare dividends to the Company; adequacy of the allowance for loan losses, changes in credit quality and the effect of credit quality on the 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 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; failure to recognize expected cost savings; 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 terms of other credit agreements; changes in oil and natural gas prices; 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 any forward-looking statement 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, except as may otherwise be required by law, 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


					September 30,			December 31,			September 30,
					2015			2014			2014
					(In thousands)
Assets
Cash and due from banks				$	23,750		$	32,441		$	46,617

Securities available for sale, at fair value					276,353			346,146			349,993
Securities held to maturity					140,928			88,514			91,042
Bank stocks, at cost					16,018			14,822			15,083
			Total investments		433,299			449,482			456,118

Loans held for sale					8			-			-

Loans, held for investment, net of deferred costs and fees					1,726,143			1,541,434			1,482,268
	Less allowance for loan losses				(22,890	)		(22,490	)		(22,350	)
			Net loans, held for investment		1,703,253			1,518,944			1,459,918

Premises and equipment, net					48,564			45,937			46,492
Other real estate owned and foreclosed assets					1,371			2,175			3,526
Other intangible assets, net					5,668			7,154			7,808
Bank owned life insurance					48,537			42,456			32,135
Other assets					21,180			26,189			25,325
			Total assets	$	2,285,630		$	2,124,778		$	2,077,939

Liabilities and Stockholders' Equity
Liabilities:
	Deposits:
		Noninterest-bearing demand		$	683,797		$	654,051		$	617,704
		Interest-bearing demand and NOW			405,092			326,748			365,538
		Money market			369,023			374,063			357,368
		Savings			144,602			138,588			128,931
		Time			244,815			191,874			193,057
			Total deposits		1,847,329			1,685,324			1,662,598
Securities sold under agreement to repurchase and federal funds purchased					30,151			33,508			23,674
Federal Home Loan Bank term notes					95,000			20,000			110,000
Federal Home Loan Bank line of credit borrowing					56,300			140,300			40,400
Subordinated debentures					25,774			25,774			25,774
Interest payable and other liabilities					12,273			12,933			10,132
			Total liabilities		2,066,827			1,917,839			1,872,578

Stockholders' equity:
	Common stock and additional paid-in capital -- common stock				711,610			709,365			708,597
	Accumulated deficit				(385,930	)		(396,172	)		(396,339	)
	Accumulated other comprehensive loss				(3,421	)		(3,127	)		(4,052	)
	Treasury stock				(103,456	)		(103,127	)		(102,845	)
			Total stockholders' equity		218,803			206,939			205,361
			Total liabilities and stockholders' equity	$	2,285,630		$	2,124,778		$	2,077,939

GUARANTY BANCORP AND SUBSIDIARIES

Unaudited Consolidated Statements of Operations


				Three Months Ended September 30,				Nine Months Ended September 30,
				2015		2014		2015		2014

				(In thousands, except share and per share data)
Interest income:
	Loans, including costs and fees		$	17,829	$	16,336	$	51,749	$	46,508
	Investment securities:
		Taxable		2,064		2,287		6,265		6,995
		Tax-exempt		719		691		2,133		2,007
	Dividends			249		214		724		622
	Federal funds sold and other			2		1		5		4
		Total interest income		20,863		19,529		60,876		56,136
Interest expense:
	Deposits			866		647		2,284		1,797
	Securities sold under agreement to repurchase and federal funds purchased			11		9		31		27
	Borrowings			375		862		832		2,580
	Subordinated debentures			205		202		606		599
		Total interest expense		1,457		1,720		3,753		5,003
		Net interest income		19,406		17,809		57,123		51,133
Provision (credit) for loan losses				14		(3)		104		15
		Net interest income, after provision for loan losses		19,392		17,812		57,019		51,118
Noninterest income:
	Deposit service and other fees			2,309		2,290		6,682		6,708
	Investment management and trust			1,292		1,279		3,964		3,149
	Increase in cash surrender value of life insurance			447		291		1,316		877
	Gain on sale of securities			-		3		-		28
	Gain on sale of SBA loans			232		186		681		351
	Other			119		289		275		720
		Total noninterest income		4,399		4,338		12,918		11,833
Noninterest expense:
	Salaries and employee benefits			8,318		8,135		24,921		24,332
	Occupancy expense			1,487		1,583		4,814		4,764
	Furniture and equipment			740		693		2,206		2,061
	Amortization of intangible assets			495		670		1,486		1,852
	Other real estate owned, net			(31)		147		64		225
	Insurance and assessments			604		594		1,795		1,779
	Professional fees			838		890		2,520		2,593
	Impairment of long-lived assets			-		-		122		110
	Other general and administrative			2,415		2,447		7,164		6,996
		Total noninterest expense		14,866		15,159		45,092		44,712
		Income before income taxes		8,925		6,991		24,845		18,239
Income tax expense				2,923		2,320		8,282		5,942
		Net income	$	6,002	$	4,671	$	16,563	$	12,297

Earnings per common share -- basic:			$	0.28	$	0.22	$	0.79	$	0.59
Earnings per common share -- diluted:				0.28		0.22		0.78		0.58

Dividend declared per common share:			$	0.10	$	0.05	$	0.30	$	0.15

Weighted average common shares outstanding -- basic:				21,076,380		20,966,179		21,061,445		20,954,046
Weighted average common shares outstanding -- diluted:				21,224,989		21,089,221		21,215,435		21,070,895

GUARANTY BANCORP AND SUBSIDIARIES

Unaudited Consolidated Average Balance Sheets


			QTD Average						YTD Average
			September 30,		June 30,		September 30,		September 30,		September 30,
			2015		2015		2014		2015		2014
			(In thousands)
Assets
Interest earning assets
	Loans, net of deferred costs and fees	$	1,703,218	$	1,618,430	$	1,463,042	$	1,617,724	$	1,398,501
	Securities		436,643		449,060		462,603		444,778		461,895
	Other earning assets		1,946		1,978		1,829		2,085		1,973
Average earning assets			2,141,807		2,069,468		1,927,474		2,064,587		1,862,369
Other assets			126,796		130,255		116,282		128,361		117,013
Total average assets		$	2,268,603	$	2,199,723	$	2,043,756	$	2,192,948	$	1,979,382

Liabilities and Stockholders' Equity
Average liabilities:
Average deposits:
	Noninterest-bearing deposits	$	637,184	$	634,824	$	595,041	$	639,694	$	568,188
	Interest-bearing deposits		1,159,829		1,075,022		1,033,094		1,093,813		984,640
	Average deposits		1,797,013		1,709,846		1,628,135		1,733,507		1,552,828
Other interest-bearing liabilities			242,330		263,702		201,579		233,066		218,736
Other liabilities			12,518		12,630		10,131		12,885		9,075
Total average liabilities			2,051,861		1,986,178		1,839,845		1,979,458		1,780,639
Average stockholders' equity			216,742		213,545		203,911		213,490		198,743
Total average liabilities and stockholders' equity		$	2,268,603	$	2,199,723	$	2,043,756	$	2,192,948	$	1,979,382

Contact Information:

Contacts:
Paul W. Taylor
President and Chief Executive Officer
Guaranty Bancorp
1331 Seventeenth Street, Suite 200
Denver, CO 80202
(303) 293-5563

Christopher G. Treece
E.V.P., Chief Financial Officer and Secretary
Guaranty Bancorp
1331 Seventeenth Street, Suite 200
Denver, CO 80202
(303) 675-1194

Guaranty Bancorp Announces 2015 Third Quarter Financial Results