-- Net interest margin increased to 3.50%, the second consecutive quarterly increase -- Provision for loan losses decreased by 60% as compared to the previous quarter -- Quarterly charge-offs at the lowest level since 2008 -- Total capital ratio increased to 14.28%, an all-time highGuaranty Bancorp (
Quarter Ended --------------------------------------- March 31, December 31, March 31, 2010 2009 2009 ----------- ----------- ----------- Earnings (loss) per common share-basic & diluted $ (0.06) $ (0.07) $ 0.01 Return on average assets (0.36%) (0.35%) 0.09% Net Interest Margin 3.50% 3.26% 3.26%Balance Sheet
March 31, December 31, March 31, 2010 2009 % Change 2009 % Change --------- --------- -------- --------- -------- (Dollars in thousands, except per share amounts) Cash and cash equivalents $ 222,723 $ 234,483 (5.0)% $ 34,982 536.7 % Total investments 252,393 248,236 1.7 % 139,387 81.1 % Total loans, net of unearned discount 1,435,071 1,519,608 (5.6)% 1,757,103 (18.3)% Loans held for sale 11,506 9,862 16.7 % 5,175 122.3 % Allowance for loan losses (52,015) (51,991) 0.0 % (37,598) 38.3 % Total assets 2,030,331 2,127,580 (4.6)% 2,036,395 (0.3)% Average assets, quarter-to-date 2,066,930 2,117,257 (2.4)% 2,065,680 0.1 % Total deposits 1,602,884 1,693,290 (5.3)% 1,639,797 (2.3)% Book value per common share 2.44 2.50 (2.5)% 3.11 (21.6)% Tangible book value per common share 2.10 2.13 (1.4)% 2.66 (21.0)% Tangible book value per common share (after giving effect to conversion of preferred stock) 1.98 2.00 (0.9)% 2.66 (25.5)% Book value of preferred stock 60,580 59,227 2.3 % None N/A Liquidation value of preferred stock 61,787 60,434 2.2 % None N/A Equity ratio - GAAP 9.41% 9.05% 4.0 % 8.03% 17.1 % Tangible equity ratio 8.60% 8.23% 4.5 % 6.94% 23.9 % Total risk-based capital ratio 14.28% 13.80% 3.5 % 10.82% 32.0 %Net Interest Income and Margin
Quarter Ended ---------------------------------------------------- March 31, December September June 30, March 31, 2010 31, 2009 30, 2009 2009 2009 --------- --------- --------- --------- --------- (Dollars in thousands) Net interest income $ 16,632 $ 16,284 $ 14,911 $ 15,860 $ 15,718 Interest rate spread 3.10% 2.81% 2.65% 2.77% 2.62% Net interest margin 3.50% 3.26% 3.14% 3.38% 3.26% Net interest margin, fully tax equivalent 3.58% 3.34% 3.23% 3.46% 3.34%First quarter 2010 net interest income of $16.6 million increased by $0.3 million from the fourth quarter 2009, and increased $0.9 million from the first quarter 2009. The Company's net interest margin of 3.50% for the first quarter 2010 reflected an increase of 24 basis points from both the fourth quarter 2009 and the first quarter 2009. The increase in net interest margin and net interest spread in the first quarter 2010, as compared to the fourth quarter 2009, is primarily a result of an increase in loan yields and a reduction in the cost of deposits during the first quarter 2010. Loan yields were 5.65% for the first quarter 2010 as compared to 5.44% in the fourth quarter 2009, an increase of 21 basis points. The cost of deposits (excluding noninterest-bearing demand deposits) was 1.49% for the first quarter 2010 as compared to 1.74% in the previous quarter, a decline of 25 basis points. The $0.9 million increase in net interest income in the first quarter 2010 as compared to the same quarter in 2009 is primarily due to a $4.8 million favorable rate variance which was mostly offset by a $3.9 million unfavorable volume variance. The favorable rate variance is primarily attributable to a 48 basis point increase in loan yields in the first quarter 2010 as compared to the same period in 2009, as well as a 74 basis point decline in the overall cost of funds over the same period. Loan yields increased as a result of loan repricing with minimum rates established on loan renewals throughout 2009. The overall cost of funds declined primarily due to a 137 basis point decrease in time deposit rates as certificates of deposit repriced to lower rates upon renewal. The unfavorable volume variance is primarily a result of a $316.1 million decline in average loan balances in the first quarter 2010 as compared to the same quarter in 2009. Noninterest Income The following table presents noninterest income as of the dates indicated:
Quarter Ended ------------------------------------------------ March 31, December September June 30, March 31, 2010 31, 2009 30, 2009 2009 2009 --------- -------- -------- --------- -------- (In thousands) Noninterest income: Customer service and other fees $ 2,214 $ 2,206 $ 2,281 $ 2,354 $ 2,679 Gain (loss) on sale of securities 14 (1) (1) - - Other 194 127 242 277 215 --------- -------- -------- --------- -------- Total noninterest income $ 2,422 $ 2,332 $ 2,522 $ 2,631 $ 2,894 ========= ======== ======== ========= ========Noninterest income for the first quarter 2010 remained relatively flat as compared to the fourth quarter 2009, and declined by approximately $0.5 million from the first quarter 2009. The decline in noninterest income in the first quarter 2010 as compared to the same quarter in 2009 is mostly due to customer service and other fees, which declined primarily as a result of a $0.2 million decrease in analysis account fees due to lower activity, as well as a net $0.3 million decline in all other fee income. Noninterest Expense The following table presents noninterest expense as of the dates indicated:
Quarter Ended ------------------------------------------------ March 31, December September June 30, March 31, 2010 31, 2009 30, 2009 2009 2009 --------- --------- --------- --------- -------- (In thousands) Noninterest expense: Salaries and employee benefits $ 6,563 $ 6,560 $ 6,536 $ 6,712 $ 6,739 Occupancy expense 1,890 1,854 1,908 1,926 1,921 Furniture and equipment 976 1,060 1,103 1,147 1,131 Amortization of intangible assets 1,300 1,556 1,559 1,581 1,582 Other real estate owned 2,749 3,281 1,654 915 48 Insurance and assessments 1,812 1,612 1,688 2,195 1,041 Professional fees 877 963 516 896 849 Other general and administrative 1,959 2,860 2,517 2,342 2,149 --------- --------- --------- --------- -------- Total noninterest expense $ 18,126 $ 19,746 $ 17,481 $ 17,718 $ 15,460 ========= ========= ========= ========= ========Noninterest expense for the first quarter 2010 decreased by $1.6 million as compared to the fourth quarter 2009 and increased by $2.7 million from the first quarter 2009. The $1.6 million decline in noninterest expense in the first quarter 2010 as compared to the fourth quarter 2009 is due mostly to a $0.9 million decline in other general and administrative expense, a $0.5 million decline in other real estate owned expense and a $0.3 million decline in amortization of intangible assets. The decrease in other general and administrative expenses is due to several decreases in miscellaneous other expenses. The decline in other real estate owned expense is due to a decline in write-downs on other real estate owned properties resulting from valuation adjustments and sales. The decrease in intangible asset amortization is due to accelerated amortization on our core deposit intangible assets. The $2.7 million increase in noninterest expense in the first quarter 2010 as compared to the same period in 2009 is mostly due to a $2.7 million increase in other real estate owned expense and a $0.8 million increase in insurance and assessments. These increases were partially offset by a $0.2 million decrease in salaries and employee benefits, a combined $0.2 million decrease in occupancy and furniture & equipment expense, a $0.3 million decrease in amortization of intangible assets and a $0.2 million decrease in other general and administrative expense. The $2.7 million increase in other real estate owned expense in the first quarter 2010 as compared to the same period in 2009 is due to write-downs on other real estate owned properties resulting from valuation adjustments and sales. The $0.8 million increase in insurance and assessments is mostly due to higher FDIC insurance premiums in 2010 as compared to 2009. Preferred Stock Dividend On February 15, 2010, a non-cash preferred stock dividend was paid in the form of additional shares of Series A convertible preferred stock to holders of Series A convertible preferred stock in the amount of $1.4 million. The effect of this preferred stock dividend was to increase the loss allocable to common shareholders as reflected in the earnings (loss) per common share computation. Balance Sheet
March 31, December March 31, 2010 31, 2009 % Change 2009 % Change ---------- ---------- ------- ---------- ------- (Dollars in thousands, except per share amounts) Total assets $2,030,331 $2,127,580 (4.6)% $2,036,395 (0.3)% Average assets, quarter-to-date 2,066,930 2,117,257 (2.4)% 2,065,680 0.1 % Loans, net of unearned discount 1,435,071 1,519,608 (5.6)% 1,757,103 (18.3)% Total deposits 1,602,884 1,693,290 (5.3)% 1,639,797 (2.3)% Equity ratio - GAAP 9.41% 9.05% 4.0 % 8.03% 17.1 % Tangible equity ratio 8.60% 8.23% 4.5 % 6.94% 23.9 %At March 31, 2010, total assets of $2.0 billion declined by $97.2 million, or 4.6%, as compared to December 31, 2009 and remained relatively flat as compared to March 31, 2009. The decline in assets from December 31, 2009 is mostly due to an $84.5 million decline in loans, net of unearned discount. Most of this decrease was in commercial loans. The decline in commercial loans is partly attributable to planned efforts by the bank to reduce lower yielding syndicated and participated loans. Although total assets remained relatively flat at March 31, 2010 as compared to March 31, 2009, there was a change in the mix of assets as total loans declined by $322 million, while investment securities increased by $113 million and cash and cash equivalents increased by $187 million. The increase in cash and cash equivalents is primarily a result of management's decision to improve the bank's overall liquidity position. Management continues to evaluate alternatives to utilize this additional low-yielding liquidity in the existing interest-rate environment in order to improve our future net interest margin. The GAAP equity ratio and tangible equity ratio increased at March 31, 2010 as compared to December 31, 2009. Additionally, both the GAAP equity ratio and tangible equity ratio increased significantly from March 31, 2009, primarily as a result of the issuance of $57.8 million, net of expenses, of convertible preferred stock in August 2009. The following table sets forth the amounts of our loans outstanding (excluding loans held for sale) at the dates indicated:
March 31, December 31, March 31, 2010 2009 2009 ----------- ----------- ----------- (In thousands) Loans on real estate: Residential and commercial $ 748,135 $ 760,719 $ 658,982 Construction 111,231 105,612 250,665 Equity lines of credit 53,014 54,852 52,679 Commercial loans 448,908 521,016 714,218 Agricultural loans 17,203 18,429 22,686 Lease financing 4,014 4,011 3,547 Installment loans to individuals 34,986 36,175 38,220 Overdrafts 612 358 987 SBA and other 19,396 20,997 18,294 ----------- ----------- ----------- 1,437,499 1,522,169 1,760,278 Unearned discount (2,428) (2,561) (3,175) ----------- ----------- ----------- Loans, net of unearned discount $ 1,435,071 $ 1,519,608 $ 1,757,103 =========== =========== ===========There were $912.4 million of real estate loans at March 31, 2010 as compared to $921.2 million at December 31, 2009, a decrease of $8.8 million as management continues efforts to decrease its exposure to residential and commercial real-estate. The $139.4 million decrease in construction loans, and the $89.2 million increase in residential and commercial real estate loans at March 31, 2010 as compared to March 31, 2009 is partially due to reclassifying $124.0 million of construction loans to residential and commercial real estate loans because of the completion of the underlying building projects and the commencement of amortization on these loans. A portion of the remainder of the decrease in construction loans was a result of payoffs on existing loans, as well as moving loans to other real estate owned during 2009 and 2010. The following table sets forth the amounts of our deposits outstanding at the dates indicated:
March 31, December 31, March 31, 2010 2009 2009 ------------ ------------ ------------ (In thousands) Noninterest bearing deposits $ 363,059 $ 366,103 $ 422,509 Interest bearing demand 165,315 171,844 140,110 Money market 321,603 352,127 285,164 Savings 74,537 71,816 72,157 Time 678,370 731,400 719,857 ------------ ------------ ------------ Total deposits $ 1,602,884 $ 1,693,290 $ 1,639,797 ============ ============ ============Total deposits decreased by $90.4 million to $1.60 billion at March 31, 2010 as compared to $1.69 billion at December 31, 2009, and decreased by $36.9 million as compared to $1.64 billion at March 31, 2009. The overall decrease in deposits during the first quarter 2010 is mostly due to a $53.0 million decline in time deposits and a $30.5 million decline in money markets due mostly to seasonal fluctuations of customer balances. Borrowings were $164.3 million at March 31, 2010 as compared to $164.4 million at December 31, 2009, and $164.5 million at March 31, 2009. The entire balance of borrowings at each balance sheet date consisted of term advances with the Federal Home Loan Bank. Regulatory Capital Ratios The Company's and the subsidiary bank's capital ratios increased at March 31, 2010 as compared to December 31, 2009 due to a decrease in risk-weighted assets. All of the regulatory capital ratios are above the highest regulatory capital requirement of "well-capitalized" at March 31, 2010. The Company's and the subsidiary bank's actual capital ratios for March 31, 2010 and December 31, 2009 are presented in the table below:
Minimum Requirement Ratio at Ratio at Minimum for "Well March 31, December Capital Capitalized" 2010 31, 2009 Requirement Institution --------- --------- --------- --------- Total Risk-Based Capital Ratio: Consolidated 14.28% 13.80% 8.00% N/A Guaranty Bank and Trust Company 13.40% 12.82% 8.00% 10.00% Tier 1 Risk-Based Capital Ratio: Consolidated 9.64% 9.43% 4.00% N/A Guaranty Bank and Trust Company 12.12% 11.55% 4.00% 6.00% Leverage Ratio: Consolidated 7.94% 7.89% 4.00% N/A Guaranty Bank and Trust Company 9.90% 9.66% 4.00% 5.00%Generally, the allowance for loan losses is included in total capital for regulatory purposes; however, it is limited to 1.25% of total risk-weighted assets. At March 31, 2010, approximately $30.7 million of the subsidiary bank's allowance for loan losses is disallowed from being included in total risk-based capital under the regulatory capital rules, or approximately 1.84% of the subsidiary bank's risk-weighted assets. Asset Quality The following table presents selected asset quality data (excluding loans held for sale) as of the dates indicated:
March 31, December September June 30, March 31, 2010 31, 2009 30, 2009 2009 2009 --------- --------- --------- --------- --------- (Dollars in thousands) Nonaccrual loans, not restructured $ 70,500 $ 59,584 $ 81,035 $ 52,483 $ 57,299 Other nonperforming loans 558 123 150 2,671 911 --------- --------- --------- --------- --------- Total nonperforming loans (NPLs) $ 71,058 $ 59,707 $ 81,185 $ 55,154 $ 58,210 Other real estate owned and foreclosed assets 30,918 37,192 32,246 34,746 14,524 --------- --------- --------- --------- --------- Total nonperforming assets (NPAs) $ 101,976 $ 96,899 $ 113,431 $ 89,900 $ 72,734 ========= ========= ========= ========= ========= Accruing loans past due 90 days or more (1) $ 558 $ 123 $ 9,140 $ 2,671 $ 911 ========= ========= ========= ========= ========= Accruing loans past due 30-89 days (1) $ 21,956 $ 21,709 $ 52,443 $ 39,836 $ 31,957 ========= ========= ========= ========= ========= Allowance for loan losses $ 52,015 $ 51,991 $ 49,038 $ 43,041 $ 37,598 ========= ========= ========= ========= ========= Selected ratios: NPLs to loans, net of unearned discount 4.95% 3.93% 5.11% 3.34% 3.31% NPAs to total assets 5.02% 4.55% 5.51% 4.62% 3.57% Allowance for loan losses to NPAs 51.01% 53.65% 43.23% 47.88% 51.69% Allowance for loan losses to NPLs 73.20% 87.08% 60.40% 78.04% 64.59% Allowance for loan losses to loans, net of unearned discount 3.62% 3.42% 3.09% 2.61% 2.14% Loans 30-89 days past due to loans, net of unearned discount 1.53% 1.43% 3.30% 2.41% 1.82% (1)Past due loans include both loans that are past due with respect to payments, and loans that are past due with respect to the fact that the loan has matured and is in the process of renewal, but continues to be current with respect to payments.The types of nonperforming loans (excluding loans held for sale) as of March 31, 2010 and December 31, 2009 are as follows:
----------------------------------------------------------- Nonperforming Loans ----------------------------------------------------------- March 31, 2010 December 31, 2009 ----------------------------- ----------------------------- Loan Related Loan Related Balance Percent Allowance Balance Percent Allowance --------- -------- --------- --------- -------- --------- (Amounts in thousands) Residential Construction, Land and Land Development $ 39,931 56.2% $ 4,681 $ 25,812 43.2% $ 2,542 Other Residential Loans 4,054 5.7% 649 3,131 5.2% 623 Commercial and Industrial Loans 10,661 15.0% 1,620 18,206 30.5% 1,960 Commercial Real Estate 16,069 22.6% 3,852 12,188 20.5% 1,468 Other 343 0.5% - 370 0.6% 10 --------- -------- --------- --------- -------- --------- Total $ 71,058 100.0% $ 10,802 $ 59,707 100.0% $ 6,603 ========= ======== ========= ========= ======== =========The increase in nonperforming loans related to residential construction, land and land development is primarily a result of one syndicated credit that was downgraded by the lead bank, of which our share is $19.1 million. The amount of the allowance for loan losses allocated to this loan is $1.4 million. The underlying collateral on this syndicated credit is a for-rent multifamily project which is essentially leasing to plan; however, the loan was placed on nonaccrual status due to issues between the borrower's parent company and the lead bank. This loan was placed on nonaccrual status due to the lead lender's efforts to reach a broader settlement with the borrower's parent company on this property and other projects in which we do not participate. The types of loans included in the accruing loans past due 30-89 days as of March 31, 2010 and December 31, 2009 are as follows:
-------------------------------------------------- Accruing loans past due 30-89 days -------------------------------------------------- March 31, 2010 December 31, 2009 ------------------------ ------------------------ Loan Balance Percent Loan Balance Percent ------------ ----------- ------------ ----------- (Amounts in thousands) Residential Construction, Land and Land Development $ 5,138 23.4% $ 10,265 47.3% Other Residential Loans 1,382 6.3% 2,103 9.7% Commercial and Industrial Loans 5,027 22.9% 4,038 18.6% Commercial Real Estate 2,268 10.3% 3,516 16.2% Other 8,141 37.1% 1,787 8.2% ------------ ----------- ------------ ----------- Total $ 21,956 100.0% $ 21,709 100.0% ============ =========== ============ ===========The overall level of accruing loans past due 30-89 days remains stable with the previous quarter. The level of past due loans for the prior two quarters reflects a significant decline when compared to the first three quarters of 2009. At March 31, 2010, approximately $9.8 million of the $22.0 million of accruing loans past due 30-89 days were matured and in the process of renewal. These loans are current with respect to payments, but are considered past due as they have matured and are expected to be renewed. Due to more conservative underwriting requirements and pricing increases being sought, it is taking longer to negotiate and redocument the matured loans. Net charge-offs in the first quarter 2010 were $4.0 million as compared to $7.1 million in the fourth quarter 2009 and $9.9 million in the first quarter 2009. This is the lowest level of quarterly charge-offs since 2008. Impaired loans as of March 31, 2010 totaled $71.1 million compared to $59.7 million at December 31, 2009 and $58.2 million at March 31, 2009. The Company recorded a provision for loan losses in the first quarter 2010 of $4.0 million, as compared to $10.0 million in the fourth quarter 2009 and $2.5 million in the first quarter 2009. The first quarter 2010 provision for loan losses is 60% lower than the fourth quarter 2009. The provision for loan losses in the first quarter consisted of an $8.1 million increase in the specific component of the allowance including charge-offs on impaired loans, partially offset by a $4.1 million decrease in the general component of the allowance due primarily to declines in overall classified and watch list loans, as well as a decrease in the balance of loans that are allocated a general component of the allowance for loan losses. Shares Outstanding As of March 31, 2010, the Company had 52,825,468 shares of common stock outstanding, including 1,330,571 shares of unvested stock awards, but excluding 156,567 shares of common stock to be issued under its deferred compensation plan. In addition, the company had 61,787 shares of Series A convertible preferred stock outstanding, with a liquidation value of $1,000 per share. Non-GAAP Financial Measures This press release includes non-GAAP financial measures related to tangible assets, including tangible book value, tangible book value (after giving effect to conversion of preferred stock), and tangible equity ratio, which exclude intangible assets. The Company discloses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company's operational performance and to enhance investors' overall understanding of the Company's core financial performance. Management believes that these non-GAAP financial measures allow for additional transparency and are used by some investors, analysts and other users of the Company's financial information as performance measures. These non-GAAP financial measures are presented for supplemental informational purposes only for understanding the Company's operating results and should not be considered a substitute for financial information presented in accordance with GAAP. These non-GAAP financial measures presented by the Company may be different from non-GAAP financial measures used by other companies. The following non-GAAP schedule reconciles the book value per share to the tangible book value per share and the tangible equity ratio as of the dates indicated:
March 31, December 31, March 31, 2010 2009 2009 ----------- ----------- ----------- (Dollars in thousands, except per share amounts) Tangible Book Value per Common Share Total stockholders' equity $ 190,980 $ 192,638 $ 163,573 Less: Preferred share liquidation preference (61,787) (60,434) - ----------- ----------- ----------- Stockholders' equity attributable to common shares 129,193 132,204 163,573 Less: Intangible assets (17,922) (19,222) (23,918) ----------- ----------- ----------- Tangible common equity $ 111,271 $ 112,982 $ 139,655 =========== =========== =========== Number of common shares outstanding and to be issued 52,982,035 52,952,703 52,570,986 Number of shares of preferred stock outstanding 61,787 60,434 N/A Number of shares of common stock to be issued upon conversion of preferred stock 34,326,111 33,574,444 N/A Book value per common share $ 2.44 $ 2.50 $ 3.11 Tangible book value per common share $ 2.10 $ 2.13 $ 2.66 Tangible book value per common share (after giving effect to conversion of preferred stock) $ 1.98 $ 2.00 $ 2.66 Tangible Equity Ratio Total assets $ 2,030,331 $ 2,127,580 $ 2,036,395 Less: Intangible assets (17,922) (19,222) (23,918) ----------- ----------- ----------- Tangible assets $ 2,012,409 $ 2,108,358 $ 2,012,477 =========== =========== =========== Equity ratio - GAAP (Total stockholders' equity / total assets) 9.41% 9.05% 8.03% Tangible equity ratio (Tangible common equity + Preferred share liquidation preference) / tangible assets 8.60% 8.23% 6.94%About Guaranty Bancorp Guaranty Bancorp is a bank holding company that operates 34 branches in Colorado through a single bank, Guaranty Bank and Trust Company. The bank provides banking and other financial services including real estate, construction, commercial and industrial, energy, consumer and agricultural loans throughout its targeted Colorado markets to consumers and small to medium-sized businesses, including the owners and employees of those businesses. The bank also provides trust services, including personal trust administration, estate settlement, investment management accounts and self-directed IRAs. More information about Guaranty Bancorp can be found at www.gbnk.com. Forward-Looking Statements This press release contains forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms and other comparable terminology. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: failure to maintain adequate levels of capital and liquidity to support Company's operations; the effect of the regulatory written agreement the Company and its bank subsidiary have entered into and potential future supervisory action against the Company or its bank subsidiary; general economic and business conditions in those areas in which the Company operates; demographic changes; competition; fluctuations in interest rates; continued ability to attract and employ qualified personnel; ability to receive regulatory approval for our bank subsidiary to declare dividends to the Company; adequacy of our allowance for loan losses, changes in credit quality and the effect of credit quality on our provision for credit losses and allowance for loan losses; changes in governmental legislation or regulation, including, but not limited to, any increase in FDIC insurance premiums; changes in accounting policies and practices; changes in the deferred tax asset valuation allowance; changes in business strategy or development plans; changes in the securities markets; changes in consumer spending, borrowing and savings habits; the availability of capital from private or government sources; competition for loans and deposits and failure to attract or retain loans and deposits; changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements; political instability, acts of war or terrorism and natural disasters; and additional "Risk Factors" referenced in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, as supplemented from time to time. When relying on forward-looking statements to make decisions with respect to the Company, investors and others are cautioned to consider these and other risks and uncertainties. The Company can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. The forward-looking statements are made as of the date of this press release, and the Company does not intend, and assumes no obligation, to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
GUARANTY BANCORP AND SUBSIDIARIES Unaudited Consolidated Balance Sheets March 31, December 31, March 31, 2010 2009 2009 ----------- ----------- ----------- (In thousands) Assets Cash and due from banks $ 222,723 $ 234,483 $ 34,982 Federal funds sold - - 1,000 ----------- ----------- ----------- Cash and cash equivalents 222,723 234,483 35,982 ----------- ----------- ----------- Securities available for sale, at fair value 219,490 221,134 99,107 Securities held to maturity 15,760 9,942 11,946 Bank stocks, at cost 17,143 17,160 28,334 ----------- ----------- ----------- Total investments 252,393 248,236 139,387 ----------- ----------- ----------- Loans, net of unearned discount 1,435,071 1,519,608 1,757,103 Less allowance for loan losses (52,015) (51,991) (37,598) ----------- ----------- ----------- Net loans 1,383,056 1,467,617 1,719,505 ----------- ----------- ----------- Loans held for sale 11,506 9,862 5,175 Premises and equipment, net 59,587 60,267 62,386 Other real estate owned and foreclosed assets 30,918 37,192 14,524 Other intangible assets, net 17,922 19,222 23,918 Other assets 52,226 50,701 35,518 ----------- ----------- ----------- Total assets $ 2,030,331 $ 2,127,580 $ 2,036,395 =========== =========== =========== Liabilities and Stockholders' Equity Liabilities: Deposits: Noninterest-bearing demand $ 363,059 $ 366,103 $ 422,509 Interest-bearing demand 486,918 523,971 425,274 Savings 74,537 71,816 72,157 Time 678,370 731,400 719,857 ----------- ----------- ----------- Total deposits 1,602,884 1,693,290 1,639,797 ----------- ----------- ----------- Securities sold under agreements to repurchase and federal funds purchased 18,387 22,990 16,291 Borrowings 164,310 164,364 164,499 Subordinated debentures 41,239 41,239 41,239 Interest payable and other liabilities 12,531 13,059 10,996 ----------- ----------- ----------- Total liabilities 1,839,351 1,934,942 1,872,822 ----------- ----------- ----------- Stockholders' equity: Preferred stock and Additional paid-in capital - Preferred stock 60,580 59,227 - Common stock and Additional paid-in capital - Common stock 618,779 618,408 617,314 Shares to be issued for deferred compensation obligations 237 199 81 Accumulated deficit (385,804) (382,599) (351,567) Accumulated other comprehensive income (loss) (341) (143) 166 Treasury Stock (102,471) (102,454) (102,421) ----------- ----------- ----------- Total stockholders' equity 190,980 192,638 163,573 ----------- ----------- ----------- Total liabilities and stockholders' equity $ 2,030,331 $ 2,127,580 $ 2,036,395 =========== =========== =========== GUARANTY BANCORP AND SUBSIDIARIES Unaudited Consolidated Statements of Operations Three Months Ended March 31, ----------------------------- 2010 2009 ------------- -------------- (In thousands, except share and per share data) Interest income: Loans, including fees $ 20,784 $ 23,076 Investment securities: Taxable 1,516 726 Tax-exempt 720 767 Dividends 185 288 Federal funds sold and other 116 3 ------------- -------------- Total interest income 23,321 24,860 ------------- -------------- Interest expense: Deposits 4,713 7,125 Federal funds purchased and repurchase agreements 43 38 Borrowings 1,301 1,321 Subordinated debentures 632 658 ------------- -------------- Total interest expense 6,689 9,142 ------------- -------------- Net interest income 16,632 15,718 Provision for loan losses 4,000 2,505 ------------- -------------- Net interest income, after provision for loan losses 12,632 13,213 Noninterest income: Customer service and other fees 2,214 2,679 Gain on sale of securities 14 - Other 194 215 ------------- -------------- Total noninterest income 2,422 2,894 Noninterest expense: Salaries and employee benefits 6,563 6,739 Occupancy expense 1,890 1,921 Furniture and equipment 976 1,131 Amortization of intangible assets 1,300 1,582 Other real estate owned 2,749 48 Insurance and assessments 1,812 1,041 Professional fees 877 849 Other general and administrative 1,959 2,149 ------------- -------------- Total noninterest expense 18,126 15,460 ------------- -------------- Income (loss) before income taxes (3,072) 647 Income tax expense (benefit) (1,227) 211 ------------- -------------- Net income (loss) (1,845) 436 Preferred stock dividends (1,360) - ------------- -------------- Net income (loss) applicable to common shareholders $ (3,205) $ 436 ============= ============== Earnings (loss) per common share-basic: $ (0.06) $ 0.01 Earnings (loss) per common share-diluted: (0.06) 0.01 Weighted average common shares outstanding-basic 51,607,044 51,277,748 Weighted average common shares outstanding-diluted 51,607,044 51,277,930 GUARANTY BANCORP AND SUBSIDIARIES Unaudited Consolidated Average Balance Sheets ----------------------------------- QTD Average ----------------------------------- March 31, December 31, March 31, 2010 2009 2009 ----------- ----------- ----------- (In thousands) Assets Interest earning assets Loans, net of unearned discount $ 1,492,630 $ 1,578,761 $ 1,808,727 Securities 245,518 228,608 141,031 Other earning assets 190,302 176,049 5,175 ----------- ----------- ----------- Average earning assets 1,928,450 1,983,418 1,954,933 Other assets 138,480 133,839 110,747 ----------- ----------- ----------- Total average assets $ 2,066,930 $ 2,117,257 $ 2,065,680 =========== =========== =========== Liabilities and Stockholders' Equity Average liabilities: Average deposits: Noninterest-bearing deposits $ 352,937 $ 363,177 $ 432,080 Interest-bearing deposits 1,282,119 1,320,410 1,227,242 ----------- ----------- ----------- Average deposits 1,635,056 1,683,587 1,659,322 Other interest-bearing liabilities 224,856 223,835 230,379 Other liabilities 13,105 11,979 12,122 ----------- ----------- ----------- Total average liabilities 1,873,017 1,919,401 1,901,823 Average stockholders' equity 193,913 197,856 163,857 ----------- ----------- ----------- Total average liabilities and stockholders' equity $ 2,066,930 $ 2,117,257 $ 2,065,680 =========== =========== =========== GUARANTY BANCORP Unaudited Credit Quality Measures Quarter Ended ----------------------------------------------------- March 31, December September June 30, March 31, 2010 31, 2009 30, 2009 2009 2009 --------- --------- --------- --------- --------- (Dollars in thousands) Nonaccrual loans and leases, not restructured $ 70,500 $ 59,584 $ 81,035 $ 52,483 $ 57,299 Other nonperforming loans 558 123 150 2,671 911 --------- --------- --------- --------- --------- Total nonperforming loans $ 71,058 $ 59,707 $ 81,185 $ 55,154 $ 58,210 --------- --------- --------- --------- --------- Other real estate owned and foreclosed assets 30,918 37,192 32,246 34,746 14,524 --------- --------- --------- --------- --------- Total nonperforming assets $ 101,976 $ 96,899 $ 113,431 $ 89,900 $ 72,734 ========= ========= ========= ========= ========= Impaired loans $ 71,058 $ 59,707 $ 81,185 $ 55,154 $ 58,210 Allocated allowance for loan losses (10,802) (6,603) (7,515) (7,291) (6,342) --------- --------- --------- --------- --------- Net investment in impaired loans $ 60,256 $ 53,104 $ 73,670 $ 47,863 $ 51,868 ========= ========= ========= ========= ========= Accruing loans past due 90 days or more $ 558 $ 123 $ 9,140 $ 2,671 $ 911 ========= ========= ========= ========= ========= Accruing loans past due 30-89 days $ 21,956 $ 21,709 $ 52,443 $ 39,836 $ 31,957 ========= ========= ========= ========= ========= Charged-off loans $ 4,271 $ 7,618 $ 14,618 $ 13,509 $ 10,262 Recoveries (295) (566) (615) (347) (367) --------- --------- --------- --------- --------- Net charge-offs $ 3,976 $ 7,052 $ 14,003 $ 13,162 $ 9,895 ========= ========= ========= ========= ========= Provision for loan loss $ 4,000 $ 10,005 $ 20,000 $ 18,605 $ 2,505 ========= ========= ========= ========= ========= Allowance for loan losses $ 52,015 $ 51,991 $ 49,038 $ 43,041 $ 37,598 ========= ========= ========= ========= ========= Allowance for loan losses to loans, net of unearned discount 3.62% 3.42% 3.09% 2.61% 2.14% Allowance for loan losses to nonaccrual loans 73.78% 87.26% 60.51% 82.01% 65.62% Allowance for loan losses to nonperforming assets 51.01% 53.65% 43.23% 47.88% 51.69% Allowance for loan losses to nonperforming loans 73.20% 87.08% 60.40% 78.04% 64.59% Nonperforming assets to loans, net of unearned discount, and other real estate owned 6.96% 6.22% 7.00% 5.33% 4.11% Nonperforming assets to total assets 5.02% 4.55% 5.51% 4.62% 3.57% Nonaccrual loans to loans, net of unearned discount 4.91% 3.92% 5.11% 3.18% 3.26% Nonperforming loans to loans, net of unearned discount 4.95% 3.93% 5.11% 3.34% 3.31% Annualized net charge-offs to average loans 1.08% 1.77% 3.42% 3.05% 2.22%
Contact Information: Contact: Daniel M. Quinn President & Chief Executive Officer 1331 Seventeenth Street, Suite 300 Denver, CO 80202 303/313-6763 Paul W. Taylor E.V.P., Chief Financial & Operating Officer & Secretary 1331 Seventeenth Street, Suite 300 Denver, CO 80202 303/293-5563