SOURCE: Guaranty Bancorp

Guaranty Bancorp

April 20, 2016 16:10 ET

Guaranty Bancorp Announces 2016 First Quarter Financial Results

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