Guaranty Bancorp Announces 2016 First Quarter Financial

DENVER, CO--(Marketwired - April 20, 2016) - Guaranty Bancorp (NASDAQ: GBNK)

Previously announced planned merger with Home State Bancorp
Improved net income by 8.9% compared to the first quarter 2015
Increased quarterly dividend 15% to $0.115 per share in the first quarter 2016
Grew deposits by $70.9 million or 15.8% during the first quarter 2016

Guaranty Bancorp (NASDAQ: GBNK) ("we", "our" or "the Company"), a community bank holding company based in Colorado, today announced first quarter 2016 net income of $5.5 million, or $0.26 per basic and diluted common share, an increase of $0.5 million or $0.02 per basic and diluted common share as compared to the first quarter 2015.

The Company's operating earnings¹ increased $0.8 million, or 15.8% for the first quarter 2016, as compared to the same quarter in the prior year. The $0.8 million increase in operating earnings was due to a $1.2 million increase in net interest income resulting from a $288.4 million, or 18.9% increase in average loan balances, partially offset by an increase in income taxes due to higher pretax income. The Company's net income increased $0.5 million for the three months ended March 31, 2016, as compared to the same period in the prior year due to a $1.2 million increase in net interest income, partially offset by $0.7 million of merger-related expenses incurred in the first quarter of 2016.

"We have some very exciting initiatives in 2016 that will help to advance our growth strategy and strengthen our market share," said Paul W. Taylor, President and Chief Executive Officer. "On March 16th, we announced our planned merger with Home State Bancorp, based in Loveland, Colorado. Together, our two premier community banks will create one of the largest bank holding companies headquartered in the state of Colorado. Based on financial results as of December 31, 2015, the combined company will have approximately $3.3 billion in total assets, $2.5 billion in total deposits and $2.3 billion in total gross loans. We expect the transaction to close in the third quarter of 2016. I look forward to this exciting opportunity for our combined customers, employees and shareholders."

Mr. Taylor added, "I am equally pleased with our sustained momentum in the first quarter of 2016. We continue to remain focused on the fundamentals of our business, as evidenced by our nearly 16% growth in operating earnings as compared with the first quarter 2015, and strong balance sheet growth including a 17.7% increase in loans and an 8.8% increase in deposits over the last twelve months."

As compared to the fourth quarter 2015, the Company's first quarter 2016 operating earnings increased $0.1 million to $5.9 million. Operating return on average assets increased to 1.01% in the first quarter 2016 compared to 0.99% in the fourth quarter 2015. As compared to the fourth quarter 2015, the Company's first quarter 2016 net income decreased $0.4 million to $5.5 million primarily due to merger-related expenses incurred during the first quarter 2016. Return on average assets (GAAP) during the first quarter 2016 was 0.94% compared to 1.00% in the fourth quarter in the prior year.

¹ This press release contains certain 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. See the "Non-GAAP Financial Measures" section later in this press release for a definition of operating earnings and other non-GAAP measures.


Key Financial Measures
Income Statement

	Three Months Ended
	March 31,			December 31,			March 31,
	2016			2015			2015
	(Dollars in thousands, except per share amounts)
Net income	$	5,535		$	5,891		$	5,084
Operating earnings ⁽¹⁾	$	5,918		$	5,830		$	5,109
Earnings per common share - diluted - operating ⁽¹⁾	$	0.28		$	0.27		$	0.24
Earnings per common share - diluted	$	0.26		$	0.28		$	0.24
Return on average assets - operating ⁽¹⁾		1.01	%		0.99	%		0.98	%
Return on average assets		0.94	%		1.00	%		0.98	%
Return on average equity - operating ⁽¹⁾		10.62	%		10.44	%		9.86	%
Return on average equity		9.93	%		10.55	%		9.81	%
Net interest margin		3.60	%		3.58	%		3.84	%
Efficiency ratio - tax equivalent ⁽²⁾		59.92	%		59.55	%		62.82	%
________________

⁽¹⁾	See reconciliation of non-GAAP financial measure to the corresponding GAAP measurement in "Non-GAAP Financial Measures" later in this document.
⁽²⁾	The efficiency ratio equals noninterest expense adjusted to exclude amortization of intangible assets, prepayment penalties on long-term debt, impairment of long-lived assets and merger related expenses, 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

	March 31,			December 31,			Percent		March 31,			Percent
	2016			2015			Change		2015			Change
	(Dollars in thousands, except per share amounts)
Total investments	$	400,890		$	424,692		(5.6)	%	$	452,271		(11.4)	%
Total loans, net of deferred costs and fees		1,830,246			1,814,536		0.9	%		1,555,154		17.7	%
Allowance for loan losses		(23,025	)		(23,000	)	0.1	%		(22,500	)	2.3	%
Total assets		2,362,216			2,368,525		(0.3)	%		2,145,452		10.1	%
Total deposits		1,872,717			1,801,845		3.9	%		1,721,881		8.8	%
Book value per common share		10.35			10.21		1.4	%		9.71		6.6	%
Tangible book value per common share		10.12			9.97		1.5	%		9.41		7.5	%
Equity ratio - GAAP		9.55	%		9.36	%	2.0	%		9.84	%	(2.9)	%
Tangible common equity ratio		9.36	%		9.16	%	2.2	%		9.56	%	(2.1)	%
Total risk-based capital ratio		13.31	%		13.24	%	0.5	%		13.75	%	(3.2)	%
Assets under management and administration	$	704,713		$	698,247		0.9	%	$	706,844		(0.3)	%


Net Interest Income and Margin

	Three Months Ended
	March 31,			December 31,			March 31,
	2016			2015			2015
	(Dollars in thousands)
Net interest income	$	19,995		$	19,856		$	18,777
Average earning assets		2,234,247			2,201,096			1,980,717
Interest rate spread		3.44	%		3.43	%		3.72	%
Net interest margin		3.60	%		3.58	%		3.84	%
Net interest margin, fully tax equivalent		3.68	%		3.66	%		3.93	%
Average cost of interest-bearing liabilities (including noninterest-bearing deposits)		0.35	%		0.30	%		0.23	%
Average cost of deposits (including noninterest-bearing deposits)		0.22	%		0.20	%		0.16	%

Net interest income increased $1.2 million in the first quarter 2016, as compared to the same quarter in 2015, due to a $2.0 million increase in interest income, partially offset by a $0.8 million increase in interest expense. The increase in interest income was primarily the result of a $288.4 million, or 18.9% increase in average loan balances in the first quarter 2016 as compared to the same quarter in 2015. The increase in interest expense is primarily attributable to a $116.2 million increase in the Company's average FHLB borrowings compounded by an increase in the average cost of these borrowings.

In the first quarter 2016, net interest income increased $0.1 million as compared to the fourth quarter 2015, due to a $0.4 million increase in interest income, partially offset by a $0.3 million increase in interest expense. The increase in interest income during the first quarter 2016, as compared to the fourth quarter 2015, was primarily due to a $49.0 million increase in average loan balances. The increase in interest expense during the first quarter 2016, as compared to the fourth quarter 2015, was primarily due to a $65.3 million increase in average Federal Home Loan Bank (FHLB) borrowings as well as an increase in the average cost of these borrowings.

Noninterest Income

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


		Three Months Ended
		March 31, 2016		December 31, 2015		March 31, 2015
		(In thousands)
Noninterest income:
	Deposit service and other fees	$	2,169	$	2,259	$	2,035
	Investment management and trust		1,280		1,225		1,334
	Increase in cash surrender value of life insurance		448		442		408
	Gain on sale of securities		45		132		-
	Gain on sale of SBA loans		154		143		280
	Other		82		61		58
	Total noninterest income	$	4,178	$	4,262	$	4,115

First quarter 2016 noninterest income was $4.2 million as compared to $4.3 million in the fourth quarter 2015 and $4.1 million in the first quarter 2015.

Noninterest Expense

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


		Three Months Ended
		March 31, 2016		December 31, 2015		March 31, 2015
		(In thousands)
Noninterest expense:
	Salaries and employee benefits	$	8,788	$	8,643	$	8,604
	Occupancy expense		1,375		1,498		1,697
	Furniture and equipment		818		801		730
	Amortization of intangible assets		240		495		495
	Other real estate owned, net		2		16		41
	Insurance and assessment		613		603		565
	Professional fees		857		700		829
	Other general and administrative		3,099		2,491		2,309
	Total noninterest expense	$	15,792	$	15,247	$	15,270

Noninterest expense increased by $0.5 million to $15.8 million in the first quarter 2016 as compared to the fourth quarter 2015 and the first quarter 2015, primarily due to the $0.7 million in merger related expenses incurred during the first quarter 2016. Other offsetting variances in noninterest expense during the first quarter 2016 as compared to the fourth quarter 2015 included a $0.3 million decrease in amortization related to the use of accelerated amortization and a $0.2 million increase in professional fees. The Company's tax equivalent efficiency ratio was 59.92% for the first quarter 2016, as compared to 59.55% for the fourth quarter 2015, and 62.82% for the first quarter 2015.


Balance Sheet

	March 31,			December 31,			Percent		March 31,			Percent
	2016			2015			Change		2015			Change
	(Dollars in thousands)
Total assets	$	2,362,216		$	2,368,525		(0.3)	%	$	2,145,452		10.1	%
Average assets, quarter-to-date		2,359,180			2,327,224		1.4	%		2,108,766		11.9	%
Total loans, net of deferred costs and fees		1,830,246			1,814,536		0.9	%		1,555,154		17.7	%
Total deposits		1,872,717			1,801,845		3.9	%		1,721,881		8.8	%

Equity ratio - GAAP		9.55	%		9.36	%	2.0	%		9.84	%	(2.9)	%
Tangible common equity ratio		9.36	%		9.16	%	2.2	%		9.56	%	(2.1)	%

At March 31, 2016, the Company had total assets of $2.4 billion, reflecting a decrease of $6.3 million as compared to December 31, 2015 and an increase of $216.8 million as compared to March 31, 2015. The $70.9 increase in total deposits during the first quarter 2016 assisted in the Company reducing its FHLB borrowings by $74.9 million from $280.8 million as of December 31, 2015 to $205.9 million as of March 31, 2016.

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


			March 31,		December 31,		September 30,		June 30,			March 31,
			2016		2015		2015		2015			2015
			(In thousands)
Loans held for sale			$	-	$	-	$	8	$	423		$	700
Commercial and residential real estate				1,307,854		1,281,701		1,196,209		1,146,508			1,055,219
Construction				87,753		107,170		92,473		85,516			72,505
Commercial				329,939		323,552		336,414		333,860			326,679
Agricultural				9,768		9,294		10,991		12,380			10,625
Consumer				66,829		66,288		63,517		61,870			60,008
SBA				26,811		25,645		25,911		26,975			27,419
Other				955		631		510		1,299			2,133
	Total gross loans			1,829,909		1,814,281		1,726,033		1,668,831			1,555,288
		Deferred costs and (fees)		337		255		118		(173	)		(134	)
	Loans, net of deferred costs and fees		$	1,830,246	$	1,814,536	$	1,726,151	$	1,668,658		$	1,555,154

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


		March 31,			December 31,			September 30,			June 30,			March 31,
		2016			2015			2015			2015			2015
		(In thousands)
Beginning balance		$	1,814,281		$	1,726,033		$	1,668,831		$	1,555,288		$	1,541,813
New credit extended			105,843			155,745			149,502			169,687			95,738
Net existing credit advanced			50,482			61,165			60,784			83,792			57,900
Net pay-downs and maturities			(139,914	)		(129,189	)		(152,279	)		(138,770	)		(141,983	)
Charge-offs and other			(783	)		527			(805	)		(1,166	)		1,820
	Gross loans		1,829,909			1,814,281			1,726,033			1,668,831			1,555,288
Deferred costs and (fees)			337			255			118			(173	)		(134	)
	Loans, net of deferred costs and fees	$	1,830,246		$	1,814,536		$	1,726,151		$	1,668,658		$	1,555,154

Net change - loans outstanding		$	15,710		$	88,385		$	57,493		$	113,504		$	13,720

During the first quarter 2016, loans net of deferred costs and fees increased $15.7 million which was comprised of a $26.2 million increase in commercial and residential real estate loans and a $6.4 million increase in commercial loans, partially offset by a $19.4 million decline in construction loans. First quarter 2016 net loan growth consisted of $156.3 million in new loans and net existing credit advanced, partially offset by $139.9 million in net loan pay-downs and maturities. In addition to contractual loan principal payments and maturities, the first quarter 2016 included $28.1 million in early payoffs related to the sale of the borrower's assets, $21.4 million in payoffs due to our strategic decision to not match certain financing terms offered by competitors, $11.7 million in pay-downs related to revolving line of credit fluctuations and $10.0 million in pay-downs of energy-related loans.

For the twelve months ended March 31, 2016, loans net of deferred costs and fees increased by $275.1 million, or 17.7%. Net loan growth was comprised of a $252.6 million increase in commercial and residential real estate loans and a $15.2 million increase in construction loans. The growth in loans was the result of the development of new customer relationships and growth in existing customer relationships. The utilization rate on commercial lines of credit was 43.0% at March 31, 2016 as compared to 41.2% at December 31, 2015 and 37.8% as of March 31, 2015. At March 31, 2016, 1-4 family residential real estate loans were $343.1 million, as compared to $349.1 million at December 31, 2015, and $262.0 million as of March 31, 2015.

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


	March 31,		December 31,		September 30,		June 30,		March 31,
	2016		2015		2015		2015		2015
	(In thousands)
Noninterest-bearing demand	$	631,544	$	612,371	$	683,797	$	622,364	$	659,765
Interest-bearing demand and NOW		392,808		381,834		405,092		379,495		356,573
Money market		411,582		397,371		369,023		362,798		370,705
Savings		155,673		151,130		144,602		139,305		141,948
Time		281,110		259,139		244,815		238,037		192,890
Total deposits	$	1,872,717	$	1,801,845	$	1,847,329	$	1,741,999	$	1,721,881

At March 31, 2016, non-maturing deposits were $1.6 billion, an increase of $48.9 million as compared to December 31, 2015, and an increase of $62.6 million as compared to March 31, 2015. The increase in non-maturing deposits during the first quarter 2016 was attributable to seasonal cash fluctuations of various commercial customers in addition to new customer relationships. At March 31, 2016, noninterest-bearing deposits as a percentage of total deposits were 33.7%, as compared to 34.0% at December 31, 2015, and 38.3% at March 31, 2015.

At March 31, 2016, securities sold under agreements to repurchase were $18.7 million, a decrease of $7.7 million as compared to December 31, 2015, and a decrease of $5.2 million as compared to March 31, 2015.

Total FHLB borrowings were $205.9 million at March 31, 2016 consisting of $85.9 million of overnight advances on our subsidiary bank's, (Guaranty Bank and Trust Company) line of credit and $120.0 million in term advances. At December 31, 2015, total FHLB borrowings consisted of $185.8 million in overnight advances and $95.0 million in term advances.

Regulatory Capital Ratios

The following table provides the capital ratios of the Company and the Bank as of the dates presented, along with the applicable regulatory capital requirements:


		Ratio at March 31, 2016		Ratio at December 31, 2015		Minimum Capital Requirement		Minimum Requirement for "Well-Capitalized" Institution
Common Equity Tier 1 Risk-Based Capital Ratio
	Consolidated	11.02	%	10.94	%	4.50	%	N/A
	Guaranty Bank and Trust Company	12.19	%	11.96	%	4.50	%	6.50	%

Tier 1 Risk-Based Capital Ratio
	Consolidated	12.18	%	12.11	%	6.00	%	N/A
	Guaranty Bank and Trust Company	12.19	%	11.96	%	6.00	%	8.00	%

Total Risk-Based Capital Ratio
	Consolidated	13.31	%	13.24	%	8.00	%	N/A
	Guaranty Bank and Trust Company	13.32	%	13.09	%	8.00	%	10.00	%

Leverage Ratio
	Consolidated	10.64	%	10.68	%	4.00	%	N/A
	Guaranty Bank and Trust Company	10.66	%	10.55	%	4.00	%	5.00	%

At March 31, 2016, all of our regulatory capital ratios remained well above minimum requirements for a "well-capitalized" institution. Our Tier 1 risk-based capital ratio and total risk-based capital ratios increased as compared to our ratios at December 31, 2015 as a result of increased capital due to first quarter earnings, partially offset by growth in risk-weighted assets.

Asset Quality

The following table presents select asset quality data, including quarterly charged-off loans, recoveries and provision (credit) for loan losses as of the dates indicated:


		March 31,			December 31,			September 30,			June 30,			March 31,
		2016			2015			2015			2015			2015
		(Dollars in thousands)
Nonaccrual loans and leases		$	13,401		$	14,474		$	14,512		$	13,192		$	13,266
Accruing loans past due 90 days or more ⁽¹⁾			-			-			-			-			-

Total nonperforming loans (NPLs)		$	13,401		$	14,474		$	14,512		$	13,192		$	13,266
Other real estate owned and foreclosed assets			674			674			1,371			1,503			2,175

Total nonperforming assets (NPAs)		$	14,075		$	15,148		$	15,883		$	14,695		$	15,441

Total classified assets		$	27,191		$	26,428		$	31,208		$	31,762		$	28,637

Accruing loans past due 30-89 days ⁽¹⁾		$	1,398		$	2,091		$	3,461		$	1,487		$	8,368

Charged-off loans		$	(302	)	$	(66	)	$	(75	)	$	(48	)	$	(49	)
Recoveries			311			184			101			285			82
	Net recoveries	$	9		$	118		$	26		$	237		$	33

Provision (credit) for loan losses		$	16		$	(8	)	$	14		$	113		$	(23	)

Allowance for loan losses		$	23,025		$	23,000		$	22,890		$	22,850		$	22,500

Selected ratios:
NPLs to loans, net of deferred costs and fees ⁽²⁾			0.73	%		0.80	%		0.84	%		0.79	%		0.85	%
NPAs to total assets			0.60	%		0.64	%		0.69	%		0.65	%		0.72	%
Allowance for loan losses to NPLs			171.82	%		158.91	%		157.73	%		173.21	%		169.61	%
Allowance for loan losses to loans, net ofdeferred costs and fees ⁽²⁾			1.26	%		1.27	%		1.33	%		1.37	%		1.45	%
Loans 30-89 days past due to loans, net ofdeferred costs and fees ⁽²⁾			0.08	%		0.12	%		0.20	%		0.09	%		0.54	%
Texas ratio ⁽³⁾			5.14	%		5.65	%		6.09	%		5.80	%		6.07	%
Classified asset ratio ⁽⁴⁾			11.56	%		11.66	%		13.51	%		13.87	%		11.26	%
___________________

⁽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:


March 31, 2016	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	$	867	$	-	$	10,555	$	11,422	$	1,308,095
Construction		-		-		986		986		87,769
Commercial		80		-		854		934		330,000
Consumer		94		-		481		575		66,841
Other		357		-		525		882		37,541
Total	$	1,398	$	-	$	13,401	$	14,799	$	1,830,246


December 31, 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	$	653	$	-	$	11,905	$	12,558	$	1,281,881
Construction		-		-		986		986		107,185
Commercial		1,147		-		874		2,021		323,598
Consumer		291		-		459		750		66,297
Other		-		-		250		250		35,575
Total	$	2,091	$	-	$	14,474	$	16,565	$	1,814,536

During the first quarter 2016, nonperforming assets decreased by $1.1 million from December 31, 2015 and decreased by $1.4 million from March 31, 2015. The decrease in nonperforming assets at March 31, 2016 as compared to December 31, 2015 was primarily the result of the payoff during the first quarter 2016 of a single nonaccrual loan with a balance of $1.0 million as of December 31, 2015. As of March 31, 2016, nonperforming loans included one out-of-state loan participation with a balance of $9.5 million.

At March 31, 2016, classified assets represented 11.6% of bank-level Tier 1 risk-based capital plus allowance for loan losses, as compared to 11.7% at December 31, 2015, and 11.3% at March 31, 2015.

Net recoveries in first quarter 2016 were immaterial as compared to net recoveries of $0.1 million in the fourth quarter 2015, and an immaterial amount of net recoveries in the first quarter 2015. 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 March 31, 2016, the Company had 21,790,800 shares of common stock outstanding, consisting of 20,771,800 shares of voting common stock, of which 556,944 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, and operating earnings adjusted for merger related expenses, OREO expenses, debt termination expense, impairments of long-lived assets, securities gains and losses and gains or losses on the sale or disposal of other assets. The Company also discloses the following GAAP profitability metrics alongside the operating earnings equivalent: return on average assets, return on average equity and earnings per share (diluted).

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 operating earnings to GAAP net income as of the dates indicated:


		Three Months Ended
		March 31,			December 31,			March 31,
		2016			2015			2015
		(Dollars in thousands, except per share amounts)
Net income		$	5,535		$	5,891		$	5,084
Expenses adjusted for:
	Expenses (gains) related to other real estate owned, net		2			16			41
	Merger related expenses		675			-			-
	Asset impairments		-			-			-
	Impairment of long-lived assets		-			-			-
Income adjusted for:
	Gain on sale of securities		(45	)		(132	)		-
	(Gain) loss on sale of other assets		(14	)		18			-
Pre-tax earnings adjustment			618			(98	)		41
Tax effect of adjustments ⁽¹⁾			(235	)		37			(16	)
Tax effected operating earnings adjustment			383			(61	)		25
Operating earnings		$	5,918		$	5,830		$	5,109

Average assets		$	2,359,180		$	2,327,224		$	2,108,766

Average equity		$	224,179		$	221,515		$	210,110

Fully diluted average common shares outstanding:			21,375,330			21,303,763			21,165,433

Earnings per common share-diluted:		$	0.26		$	0.28		$	0.24
Earnings per common share-diluted - operating:		$	0.28		$	0.27		$	0.24

ROAA (GAAP)			0.94	%		1.00	%		0.98	%
ROAA - operating			1.01	%		0.99	%		0.98	%

ROAE (GAAP)			9.93	%		10.55	%		9.81	%
ROAE - operating			10.62	%		10.44	%		9.86	%
___________________

⁽¹⁾	Tax effect calculated using a combined federal and state marginal tax rate of 38.01%

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
		March 31,			December 31,			March 31,
		2016			2015			2015
		(Dollars in thousands, except per share amounts)
	Total stockholders' equity	$	225,519		$	221,639		$	211,137
	Less: Intangible assets		(4,933	)		(5,173	)		(6,659	)
	Tangible common equity	$	220,586		$	216,466		$	204,478

	Number of common shares outstanding		21,790,800			21,704,852			21,738,501

	Book value per common share	$	10.35		$	10.21		$	9.71
	Tangible book value per common share	$	10.12		$	9.97		$	9.41


Tangible Common Equity Ratio
		March 31,			December 31,			March 31,
		2016			2015			2015
		(Dollars in thousands)
	Total stockholders' equity	$	225,519		$	221,639		$	211,137
	Less: Intangible assets		(4,933	)		(5,173	)		(6,659	)
	Tangible common equity	$	220,586		$	216,466		$	204,478

	Total assets	$	2,362,216		$	2,368,525		$	2,145,452
	Less: Intangible assets		(4,933	)		(5,173	)		(6,659	)
	Tangible assets	$	2,357,283		$	2,363,352		$	2,138,793

	Equity ratio - GAAP (total stockholders' equity / total assets)		9.55	%		9.36	%		9.84	%
	Tangible common equity ratio (tangible common equity / tangible assets)		9.36	%		9.16	%		9.56	%

About Guaranty Bancorp

Guaranty Bancorp is a $2.4 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; failure or inability to complete mergers or other corporate transactions; 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

				March 31,			December 31,			March 31,
				2016			2015			2015
				(In thousands)
Assets
Cash and due from banks				$	31,142		$	26,711		$	31,649

Securities available for sale, at fair value					229,478			255,431			295,700
Securities held to maturity					152,213			148,761			141,969
Bank stocks, at cost					19,199			20,500			14,602
			Total investments		400,890			424,692			452,271

Loans held for sale					-			-			700

Loans, held for investment, net of deferred costs and fees					1,830,246			1,814,536			1,554,454
	Less allowance for loan losses				(23,025	)		(23,000	)		(22,500	)
			Net loans, held for investment		1,807,221			1,791,536			1,531,954

Premises and equipment, net					46,036			48,308			48,400
Other real estate owned and foreclosed assets					674			674			2,175
Other intangible assets, net					4,933			5,173			6,659
Bank owned life insurance					49,279			48,909			47,795
Other assets					22,041			22,522			23,849
			Total assets	$	2,362,216		$	2,368,525		$	2,145,452

Liabilities and Stockholders' Equity
Liabilities:
	Deposits:
		Noninterest-bearing demand		$	631,544		$	612,371		$	659,765
		Interest-bearing demand and NOW			392,808			381,834			356,573
		Money market			411,582			397,371			370,705
		Savings			155,673			151,130			141,948
		Time			281,110			259,139			192,890
			Total deposits		1,872,717			1,801,845			1,721,881
Securities sold under agreement to repurchase and federal funds purchased					18,730			26,477			23,922
Federal Home Loan Bank term notes					120,000			95,000			20,000
Federal Home Loan Bank line of credit borrowing					85,900			185,847			128,600
Subordinated debentures					25,774			25,774			25,774
Securities purchased, not yet settled					-			-			2,284
Interest payable and other liabilities					13,576			11,943			11,854
			Total liabilities		2,136,697			2,146,886			1,934,315

Stockholders' equity:
	Common stock and additional paid-in capital - common stock				713,491			712,334			710,241
	Accumulated deficit				(379,053	)		(382,147	)		(393,193	)
	Accumulated other comprehensive loss				(4,307	)		(4,805	)		(2,466	)
	Treasury stock				(104,612	)		(103,743	)		(103,445	)
			Total stockholders' equity		225,519			221,639			211,137
			Total liabilities and stockholders' equity	$	2,362,216		$	2,368,525		$	2,145,452


GUARANTY BANCORP AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations

			Three Months Ended March 31,
			2016		2015
			(In thousands, except share and per share data)
Interest income:
	Loans, including costs and fees		$	18,854	$	16,806
	Investment securities:
		Taxable		1,960		2,123
		Tax-exempt		731		702
	Dividends			311		222
	Federal funds sold and other			4		1
		Total interest income		21,860		19,854
Interest expense:
	Deposits			1,007		668
	Securities sold under agreement to repurchase and federal funds purchased			10		11
	Borrowings			623		199
	Subordinated debentures			225		199
		Total interest expense		1,865		1,077
		Net interest income		19,995		18,777
Provision (credit) for loan losses				16		(23	)
		Net interest income, after provision for loan losses		19,979		18,800
Noninterest income:
	Deposit service and other fees			2,169		2,035
	Investment management and trust			1,280		1,334
	Increase in cash surrender value of life insurance			448		408
	Gain on sale of securities			45		-
	Gain on sale of SBA loans			154		280
	Other			82		58
		Total noninterest income		4,178		4,115
Noninterest expense:
	Salaries and employee benefits			8,788		8,604
	Occupancy expense			1,375		1,697
	Furniture and equipment			818		730
	Amortization of intangible assets			240		495
	Other real estate owned, net			2		41
	Insurance and assessments			613		565
	Professional fees			857		829
	Other general and administrative			3,099		2,309
		Total noninterest expense		15,792		15,270
		Income before income taxes		8,365		7,645
Income tax expense				2,830		2,561
		Net income	$	5,535	$	5,084

Earnings per common share-basic:			$	0.26	$	0.24
Earnings per common share-diluted:				0.26		0.24

Dividend declared per common share:			$	0.12	$	0.10

Weighted average common shares outstanding-basic:				21,184,892		21,037,325
Weighted average common shares outstanding-diluted:				21,375,330		21,165,433


GUARANTY BANCORP AND SUBSIDIARIES
Unaudited Consolidated Average Balance Sheets

		QTD Average
		March 31,		December 31,		March 31,
		2016		2015		2015
		(In thousands)
Assets
Interest earning assets
	Loans, net of deferred costs and fees	$	1,818,001	$	1,769,010	$	1,529,619
	Securities		413,434		429,971		448,764
	Other earning assets		2,812		2,115		2,334
Average earning assets			2,234,247		2,201,096		1,980,717
Other assets			124,933		126,128		128,049
Total average assets		$	2,359,180	$	2,327,224	$	2,108,766

Liabilities and Stockholders' Equity
Average liabilities:
Average deposits:
	Noninterest-bearing deposits	$	611,736	$	648,903	$	647,184
	Interest-bearing deposits		1,207,001		1,194,964		1,045,330
	Average deposits		1,818,737		1,843,867		1,692,514
Other interest-bearing liabilities			303,728		246,959		192,618
Other liabilities			12,536		14,883		13,524
Total average liabilities			2,135,001		2,105,709		1,898,656
Average stockholders' equity			224,179		221,515		210,110
Total average liabilities and stockholders' equity		$	2,359,180	$	2,327,224	$	2,108,766

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 2016 First Quarter Financial Results