-- Net interest margin increased on both a quarterly and year-to-date
basis
-- Core deposits increase by $32 million, or 3.5%, during the quarter
-- Classified assets decline during the quarter
-- Already strong total risk-based capital ratio improves during the
quarter to 15.28%
Guaranty Bancorp (
Key Financial Measures
Income Statement
Quarter Ended Nine Months Ended
------------------------------- --------------------
September June 30, September September September
30, 2010 2010 30, 2009 30, 2010 30, 2009
------------------------------- --------------------
(Dollars in thousands, except per share amounts)
Net loss (before
preferred stock
dividends) $ (4,007) $ (4,354) $ (16,901) $ (10,206) $(27,322)
Preferred stock
dividends 1,421 1,390 - 4,171 -
Loss per common
share after giving
effect to
preferred stock
dividend-basic &
diluted $ (0.11) $ (0.11) $ (0.33) $ (0.28) $ (0.53)
Return on average
assets (0.81%) (0.87%) (3.32%) (0.68%) (1.80%)
Net interest margin 3.53% 3.47% 3.14% 3.50% 3.26%
Balance Sheet
September December September
30, 2010 31, 2009 % Change 30, 2009 % Change
----------------------------------------------------
(Dollars in thousands, except per share amounts)
Cash and cash
equivalents $ 109,770 $ 234,483 (53.2)% $ 148,194 (25.9)%
Total investments 401,131 248,236 61.6 % 209,297 91.7 %
Total loans, net of
unearned discount 1,289,492 1,519,608 (15.1)% 1,587,265 (18.8)%
Loans held for sale - 9,862 (100.0)% 5,500 (100.0)%
Allowance for loan
losses (41,898) (51,991) (19.4)% (49,038) (14.6)%
Total assets 1,933,146 2,127,580 (9.1)% 2,057,378 (6.0)%
Average assets,
quarter-to-date 1,962,828 2,117,257 (7.3)% 2,022,679 (3.0)%
Total deposits 1,512,479 1,693,290 (10.7)% 1,632,436 (7.3)%
Book value per
common share 2.25 2.50 (10.0)% 2.60 (13.5)%
Tangible book value
per common share 1.97 2.13 (7.5)% 2.21 (10.9)%
Tangible book value
per common share
(after giving
effect to
conversion of
preferred stock) 1.90 2.00 (5.0)% 2.05 (7.3)%
Book value of
preferred stock 63,372 59,227 7.0 % 57,883 9.5 %
Liquidation value of
preferred stock 64,579 60,434 6.9 % 59,053 9.4 %
Equity ratio - GAAP 9.60% 9.05% 6.1 % 9.51% 0.9 %
Tangible equity
ratio 8.88% 8.23% 7.9 % 8.59% 3.4 %
Total risk-based
capital ratio 15.28% 13.80% 10.7 % 13.42% 13.9 %
Net Interest Income and Margin
Quarter Ended Nine Months Ended
------------------------------ --------------------
September June 30, September September September
30, 2010 2010 30, 2009 30, 2010 30, 2009
------------------------------ --------------------
(Dollars in thousands)
Net interest income $ 16,196 $ 16,133 $ 14,911 $ 48,961 $ 46,489
Interest rate spread 3.16% 3.09% 2.65% 3.12% 2.68%
Net interest margin 3.53% 3.47% 3.14% 3.50% 3.26%
Net interest margin,
fully tax equivalent 3.61% 3.55% 3.23% 3.58% 3.34%
Third quarter 2010 net interest income of $16.2 million increased by $0.1
million from the second quarter 2010, and increased by $1.3 million from
the third quarter 2009. The Company's net interest margin of 3.53% for the
third quarter 2010 reflected an increase of six basis points from the
second quarter 2010 and an increase of 39 basis points from the third
quarter 2009. The increase in net interest margin in the third quarter
2010, as compared to the second is due mostly to higher loan yields, which
contributed to an overall four basis point increase in the yield on earning
assets and a three basis point decrease in the cost of funds, particularly
a decrease in the cost of time deposits.
Net interest margin increased by 39 basis points in the third quarter 2010,
as compared to the same quarter in 2009. This increase is a result of a
$3.1 million favorable rate variance, less a $1.8 million unfavorable
volume variance. The favorable rate variance is primarily attributable to
a 29 basis point increase in loan yields in the third quarter 2010 as
compared to the same period in 2009, as well as a 68 basis point decline in
the overall cost of funds over the same period. Loan yields increased
primarily as a result of loans repricing with minimum rates established on
loan renewals. The overall cost of funds declined primarily due to a 126
basis point decrease in time deposit rates resulting from lower renewal
rates on such deposits. The unfavorable volume variance is primarily the
result of a $275.3 million decline in average loan balances in the third
quarter 2010 as compared to the same quarter in 2009.
Net interest income for the first nine months of 2010 increased by $2.5
million to $49.0 million compared to the same period in 2009. This increase
was mostly the result of a 24 basis point increase in net interest margin,
leading to a $10.8 million favorable rate variance offset by an $8.3
million unfavorable volume variance. The unfavorable volume variance is
due mostly to the $301.8 million decrease in average loan balances. The
favorable rate variance results from a 76 basis point decline in the cost
of interest-bearing liabilities, partially offset by a 32 basis point
decrease in the yield on earning assets. The decline in the cost of
interest-bearing liabilities is due primarily to a 136 basis point drop in
the cost of time deposits due to higher cost time deposits maturing and
either not being replaced or being replaced with lower cost time deposits.
The overall yield on earning assets declined by 32 basis points in 2010 as
compared to 2009 due mostly to a change in mix from higher yielding loan
assets to lower yielding investments and overnight funds. Although there
was a 30 basis point increase to overall loan yields in 2010 as compared to
2009, there was a $266.4 million increase in average other earning assets
including investment securities and overnight funds. At September 30,
2010, management believes that the Company remains asset sensitive, whereby
an increase in rates will have a favorable impact on overall net interest
income, especially with greater increases in overall rates.
Noninterest Income
The following table presents noninterest income as of the dates indicated:
Quarter Ended Nine Months Ended
------------------------------ ---------------------
September June 30, September September September
30, 2010 2010 30, 2009 30, 2010 30, 2009
------------------------------ ---------------------
(In thousands)
Noninterest income:
Customer service and
other fees $ 2,343 $ 2,254 $ 2,281 $ 6,811 $ 7,314
Gain (loss) on sale
of securities 82 1 (1) 97 (1)
Gain on sale of loans - 1,196 - 1,196 -
Other 128 274 242 596 734
------------------------------ ---------------------
Total noninterest
income $ 2,553 $ 3,725 $ 2,522 $ 8,700 $ 8,047
============================== =====================
Noninterest income for the third quarter 2010 was up slightly compared to
both the third quarter 2009 and the second quarter 2010, excluding the $1.2
million gain on sale of loans in the second quarter 2010.
For the nine months ended September 30, 2010, noninterest income, excluding
the $1.2 million gain on sale of loans, decreased by $0.5 million compared
to the same period in 2009. This decrease is mostly due to lower account
analysis fees and other service charges as some customers migrated to lower
fee transaction accounts.
Noninterest Expense
The following table presents noninterest expense as of the dates indicated:
Quarter Ended Nine Months Ended
------------------------------ ---------------------
September June 30, September September September
30, 2010 2010 30, 2009 30, 2010 30, 2009
------------------------------ ---------------------
(In thousands)
Noninterest expense:
Salaries and employee
benefits $ 6,551 $ 6,472 $ 6,536 $ 19,586 $ 19,987
Occupancy expense 1,890 1,836 1,908 5,616 5,755
Furniture and
equipment 850 967 1,103 2,793 3,381
Amortization of
intangible assets 1,285 1,300 1,559 3,885 4,722
Other real estate
owned 7,836 3,115 1,654 13,700 2,617
Insurance and
assessment 1,596 1,825 1,688 5,233 4,924
Professional fees 677 739 516 2,293 2,261
Other general and
administrative 2,027 2,165 2,517 6,151 7,012
------------------------------ ---------------------
Total noninterest
expense $ 22,712 $ 18,419 $ 17,481 $ 59,257 $ 50,659
============================== =====================
The $4.3 million increase in noninterest expense in the third quarter 2010
as compared to the second quarter 2010 is due mostly to a $4.7 million
increase in expenses related to other real estate owned, partially offset
by a $0.2 million decrease in insurance and assessments. The increase in
other real estate owned expense is due mostly to an increase in write-downs
on other real estate owned properties resulting from valuation adjustments
and sales. The decrease in insurance and assessments is due mostly to a
$0.2 million, or 12.6%, decrease in FDIC insurance costs. It is expected
that FDIC insurance costs will further decline in the fourth quarter 2010
and into 2011. All other categories of expense declined or remained
relatively flat in the third quarter 2010 as compared to the second quarter
2010.
The $5.2 million increase in noninterest expense in the third quarter 2010
as compared to the same period in 2009 is primarily the result of a $6.2
million increase in other real estate owned expense, partially offset by a
$0.5 million decrease in other general and administrative expenses and a
$0.3 million decrease in combined occupancy and furniture and equipment
expense.
Noninterest expense for the nine months ended September 30, 2010 increased
by $8.6 million compared to the same period in 2009 primarily due to an
$11.1 million increase in expenses associated with other real estate owned,
partially offset by decreases in most other categories of expense.
Preferred Stock Dividend
Effective August 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.
Balance Sheet
September December % September %
30, 2010 31, 2009 Change 30, 2009 Change
-------------------------------------------------------
(Dollars in thousands, except per share amounts)
Total assets $ 1,933,146 $ 2,127,580 (9.1)% $ 2,057,378 (6.0)%
Average assets,
quarter-to-date 1,962,828 2,117,257 (7.3)% 2,022,679 (3.0)%
Loans, net of
unearned discount 1,289,492 1,519,608 (15.1)% 1,587,265 (18.8)%
Total deposits 1,512,479 1,693,290 (10.7)% 1,632,436 (7.3)%
Equity ratio - GAAP 9.60% 9.05% 6.1 % 9.51% 0.9 %
Tangible equity
ratio 8.88% 8.23% 7.9 % 8.59% 3.4 %
At September 30, 2010, the Company had total assets of $1.9 billion, which
represented a $194.4 million decline as compared to December 31, 2009, and
a $124.2 million decrease as compared to September 30, 2009. The decline
in assets from December 31, 2009 is mostly due to a $230.1 million decline
in loans, net of unearned discount. This loan decline was due mostly to a
$150.7 million decline in commercial loans and a $72.6 million decline in
real estate loans.
The decrease in total assets at September 30, 2010 as compared to September
30, 2009 is the result of a decline in total loans, partially offset by an
increase in securities available for sale. Total loans, net of unearned
discount, decreased by $297.8 million from September 30, 2009 to September
30, 2010, whereas securities available for sale increased by $188.0 million
over the same time period. The increase in securities is nearly all
related to purchases of mortgage-backed government agency or
government-sponsored agency securities.
As a result of the decrease in total assets discussed above, the GAAP
equity ratio and tangible equity ratio increased at September 30, 2010 as
compared to both December 31, 2009 and September 30, 2009.
The following table sets forth the amounts of our loans outstanding
(excluding loans held for sale) at the dates indicated:
September June 30, December September
30, 2010 2010 31, 2009 30, 2009
--------------------------------------------------
(In thousands)
Loans on real estate:
Residential and
commercial $ 740,106 $ 754,019 $ 760,719 $ 715,005
Construction 56,624 83,389 105,612 163,074
Equity lines of credit 51,903 51,221 54,852 56,591
Commercial loans 370,281 411,605 521,016 573,562
Agricultural loans 16,088 17,968 18,429 19,428
Lease financing 4,014 4,014 4,011 4,722
Installment loans to
individuals 30,303 31,936 36,175 38,704
Overdrafts 627 668 358 768
SBA and other 21,595 21,607 20,997 18,181
--------------------------------------------------
1,291,541 1,376,427 1,522,169 1,590,035
Unearned discount (2,049) (2,219) (2,561) (2,770)
--------------------------------------------------
Loans, net of unearned
discount $ 1,289,492 $ 1,374,208 $ 1,519,608 $ 1,587,265
==================================================
Since September 30, 2009, the ratio of construction, land and land
development loans to capital has fallen by 52 percentage points to 86% at
September 30, 2010. Similarly, the ratio of commercial real estate loans
to capital has fallen by 52 percentage points to 297% at September 30,
2010. These ratios have now fallen below the regulatory commercial real
estate concentration guidelines of 100% for land and construction loans and
300% for all investor real estate loans.
The following table sets forth the amounts of our deposits outstanding at
the dates indicated:
September June 30, December September
30, 2010 2010 31, 2009 30, 2009
-----------------------------------------------
(In thousands)
Noninterest-bearing
deposits $ 358,447 $ 338,169 $ 366,103 $ 366,308
Interest-bearing demand 165,000 171,721 171,844 152,914
Money market 340,706 323,331 352,127 319,504
Savings 76,429 75,338 71,816 72,483
Time 571,897 635,712 731,400 721,227
-----------------------------------------------
Total deposits $ 1,512,479 $ 1,544,271 $ 1,693,290 $ 1,632,436
===============================================
Noninterest-bearing deposits as a percentage of total deposits increased to
23.7% at September 30, 2010, as compared to 21.6% at December 31, 2009.
Deposits, other than time deposits, increased by $29.4 million, at
September 30, 2010 as compared to September 30, 2009 and increased by $32.0
million as compared to June 30, 2010. Time deposits have decreased
primarily as a result of management's efforts to reduce the overall level
of higher cost brokered time deposits.
The overall decline in deposits at September 30, 2010 as compared to
December 31, 2009 is partly attributable to a decrease in wholesale time
deposits, including both brokered deposits as well as internet deposits.
Total brokered deposits at September 30, 2010 were $175.8 million,
excluding reciprocal deposits through the Certificate of Deposit Account
Registry Service (CDARS), as compared to $254.6 million at December 31,
2009. In addition to this $78.8 million decline in brokered deposits, we
also experienced a $12.5 million decline in internet time deposits. The
remaining decline in time deposits is primarily related to the non-renewal
of other higher cost certificates of deposits. It is expected that
approximately $48.5 million of internet and brokered deposits will mature
and not be replaced in the fourth quarter 2010.
Borrowings were $164.2 million at September 30, 2010 as compared to $164.4
million at both December 31, 2009 and September 30, 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
September 30, 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 September
30, 2010. The Company's and the subsidiary bank's actual capital ratios
for September 30, 2010 and December 31, 2009 are presented in the table
below:
Minimum
Requirement for
Ratio at Ratio at Minimum "Well
September 30, December 31, Capital Capitalized"
2010 2009 Requirement Institution
------------ ------------ ------------ ------------
Total Risk-Based
Capital Ratio:
Consolidated 15.28% 13.80% 8.00% N/A
Guaranty Bank
and Trust
Company 14.33% 12.82% 8.00% 10.00%
Tier 1 Risk-Based
Capital Ratio:
Consolidated 9.86% 9.43% 4.00% N/A
Guaranty Bank
and Trust
Company 13.06% 11.55% 4.00% 6.00%
Leverage Ratio:
Consolidated 7.71% 7.89% 4.00% N/A
Guaranty Bank
and Trust
Company 10.22% 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 September 30, 2010, approximately $22.8 million of the
subsidiary bank's allowance for loan losses were disallowed from being
included in total risk-based capital under the regulatory capital rules, or
approximately 1.47% 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:
September June 30, March 31, December September
30, 2010 2010 2010 31, 2009 30, 2009
------------------------------------------------------
(Dollars in thousands)
Nonaccrual loans,
not restructured $ 65,921 $ 64,339 $ 70,500 $ 59,584 $ 81,035
Other nonperforming
loans 4,420 1,065 558 123 150
------------------------------------------------------
Total nonperforming
loans (NPLs) $ 70,341 $ 65,404 $ 71,058 $ 59,707 $ 81,185
Other real estate
owned and
foreclosed assets 45,700 30,298 30,918 37,192 32,246
------------------------------------------------------
Total nonperforming
assets (NPAs) $ 116,041 $ 95,702 $ 101,976 $ 96,899 $ 113,431
======================================================
Accruing loans past
due 90 days or
more (1) $ 4,420 $ 1,065 $ 558 $ 123 $ 9,140
======================================================
Accruing loans past
due 30-89 days (1) $ 21,876 $ 33,050 $ 21,956 $ 21,709 $ 52,443
======================================================
Allowance for loan
losses $ 41,898 $ 46,866 $ 52,015 $ 51,991 $ 49,038
======================================================
Selected ratios:
NPLs to loans, net
of unearned
discount 5.45% 4.76% 4.95% 3.93% 5.11%
NPAs to total assets 6.00% 4.82% 5.02% 4.55% 5.51%
Allowance for loan
losses to NPAs 36.11% 48.97% 51.01% 53.65% 43.23%
Allowance for loan
losses to NPLs 59.56% 71.66% 73.20% 87.08% 60.40%
Allowance for loan
losses to loans,
net of unearned
discount 3.25% 3.41% 3.62% 3.42% 3.09%
Loans 30-89 days
past due to loans,
net of unearned
discount 1.70% 2.40% 1.53% 1.43% 3.30%
(1) Past due loans include both loans that are past due with respect to
payments and loans that are past due because the loan has matured, and
are in the process of renewal, but continue to be current with respect
to payments.
The types of nonperforming loans (excluding loans held for sale) as of
September 30, 2010 and June 30, 2010 are as follows:
-----------------------------------------------------
Nonperforming Loans
-----------------------------------------------------
September 30, 2010 June 30, 2010
-------------------------- --------------------------
Related Related
Loan Allow- Loan Allow-
Balance Percent ance Balance Percent ance
-------------------------- --------------------------
(Amounts in thousands)
Residential
Construction, Land
and Land Development $ 7,949 11.3% $ 718 $ 23,797 36.4% $ 517
Other Residential
Loans 4,814 6.8% 492 3,647 5.6% 676
Commercial and
Industrial Loans 12,641 18.0% 1,784 10,710 16.4% 1,802
Commercial Real
Estate 44,887 63.8% 541 26,958 41.2% 717
Other 50 0.1% 4 292 0.4% 4
-------------------------- --------------------------
Total $ 70,341 100.0% $ 3,539 $ 65,404 100.0% $ 3,716
========================== ==========================
The types of loans included in the accruing loans past due 30-89 days as of
September 30, 2010 and June 30, 2010 are as follows:
-----------------------------------
Accruing loans past due 30-89 days
-----------------------------------
September 30, 2010 June 30, 2010
----------------- -----------------
Loan Loan
Balance Percent Balance Percent
----------------- -----------------
(Amounts in thousands)
Residential Construction, Land and Land
Development $ 3,761 17.2% $ 483 1.5%
Other Residential Loans 1,602 7.3% 1,219 3.7%
Commercial and Industrial Loans 3,557 16.3% 2,758 8.3%
Commercial Real Estate 12,168 55.6% 27,290 82.6%
Other 788 3.6% 1,300 3.9%
----------------- -----------------
Total $ 21,876 100.0% $ 33,050 100.0%
================= =================
Both the increase in nonperforming loans at September 30, 2010 as compared
to June 30, 2010, as well as the decrease in accruing loans past due 30-89
days are primarily the result of a single loan of $18.9 million, net of a
$5.0 million charge-off, being added to nonaccrual status in September
2010. Of the $4.4 million in accruing loans past due 90 days or more at
September 30, 2010, $2.5 million represented a single loan that was
subsequently renewed and is current as of October 27, 2010.
The increase in other real estate owned at September 30, 2010 as compared
to June 30, 2010, is primarily attributable to two properties of $17.6
million and $4.2 million, being added in August 2010. It is anticipated
that both of these newly added other real estate owned properties will be
sold in the fourth quarter 2010 based on signed letters of intent. The
majority of write-downs on other real estate owned during the third quarter
2010 were related to valuation adjustments on two large land parcels in
order to facilitate their ultimate disposition.
Although overall nonperforming assets increased at September 30, 2010 as
compared to June 30, 2010, the level of classified loans declined by over
$27.5 million over the same period. This decline in classified assets,
combined with a 48% decline in the dollar amount of watch list loans over
the past twelve months should indicate the potential for fewer new
nonperforming credits over the next several quarters.
Net charge-offs in the third quarter 2010 were $7.5 million, including the
$5.0 million charge-off described above, as compared to $14.0 million in
the same quarter last year and $13.5 million in the second quarter 2010.
The general component of the allowance for loan losses at September 30,
2010 is $38.4 million, or 91.6% of the entire allowance for loan losses, as
compared to $43.2 million, or 92.1% of the allowance for loan losses at the
end of the previous quarter.
The Company recorded a provision for loan losses in the third quarter 2010
of $2.5 million, as compared to $8.4 million in the second quarter 2010 and
$20.0 million in the third quarter 2009. The reduction in the provision
for loan losses was the result of a decrease in loans outstanding, a
reduction in classified assets and the migration of higher charge-off
quarters out of the historical loss calculation, partially offset by
charge-offs during the quarter.
Shares Outstanding
As of September 30, 2010, the Company had 53,537,911 shares of common stock
outstanding, including 1,989,017 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 64,579 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 and should not be
considered a substitute for financial information presented in accordance
with GAAP. These non-GAAP financial measures presented by the Company may
be different from non-GAAP financial measures used by other companies.
The following non-GAAP schedules reconcile the book value per share to the
tangible book value per share and the GAAP equity ratio to the tangible
equity ratio as of the dates indicated:
September December September
30, 2010 31, 2009 30, 2009
-------------------------------------
(Dollars in thousands, except per
share amounts)
Tangible Book Value per Common Share
Total stockholders' equity $ 185,594 $ 192,638 $ 195,670
Less: Preferred share liquidation
preference (64,579) (60,434) (59,053)
-------------------------------------
Stockholders' equity attributable
to common shares 121,015 132,204 136,617
Less: Intangible assets (15,337) (19,222) (20,778)
-------------------------------------
Tangible common equity $ 105,678 $ 112,982 $ 115,839
=====================================
Number of common shares outstanding
and to be issued 53,694,478 52,952,703 52,531,840
Book value per common share $ 2.25 $ 2.50 $ 2.60
Tangible book value per common
share $ 1.97 $ 2.13 $ 2.21
Total Stockholders' equity $ 185,594 $ 192,638 $ 195,670
Less: Intangible assets (15,337) (19,222) (20,778)
-------------------------------------
Tangible common equity (after
giving effect to conversion of
preferred stock) $ 170,257 $ 173,416 $ 174,892
=====================================
Number of shares of preferred stock
outstanding 64,579 60,434 59,053
Number of shares of common stock
to be issued upon conversion
of preferred stock 35,877,222 33,574,444 32,807,222
Total number of shares of common
stock outstanding and to be
issued (after giving effect to
conversion of preferred stock) 89,571,700 86,527,147 85,339,062
Tangible book value per common
share (after giving effect to
conversion of preferred stock) $ 1.90 $ 2.00 $ 2.05
Tangible Equity Ratio
September December September
30, 2010 31, 2009 30, 2009
-------------------------------------
(Dollars in thousands, except per
share amounts)
Total stockholders' equity $ 185,594 $ 192,638 $ 195,670
Less: Intangible assets (15,337) (19,222) (20,778)
-------------------------------------
Tangible equity $ 170,257 $ 173,416 $ 174,892
=====================================
Total assets $ 1,933,146 $ 2,127,580 $ 2,057,378
Less: Intangible assets (15,337) (19,222) (20,778)
-------------------------------------
Tangible assets $ 1,917,809 $ 2,108,358 $ 2,036,600
=====================================
Equity ratio - GAAP (Total
stockholders' equity / total
assets) 9.60% 9.05% 9.51%
Tangible equity ratio (Tangible
equity / tangible assets 8.88% 8.23% 8.59%
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
September 30, December 31, September 30,
2010 2009 2009
------------- ------------- -------------
(In thousands)
Assets
Cash and due from banks $ 109,770 $ 234,483 $ 148,194
Securities available for sale,
at fair value 370,555 221,134 182,573
Securities held to maturity 13,346 9,942 10,377
Bank stocks, at cost 17,230 17,160 16,347
------------- ------------- -------------
Total investments 401,131 248,236 209,297
------------- ------------- -------------
Loans, net of unearned
discount 1,289,492 1,519,608 1,587,265
Less allowance for loan
losses (41,898) (51,991) (49,038)
------------- ------------- -------------
Net loans 1,247,594 1,467,617 1,538,227
------------- ------------- -------------
Loans held for sale - 9,862 5,500
Premises and equipment, net 58,044 60,267 61,110
Other real estate owned and
foreclosed assets 45,700 37,192 32,246
Other intangible assets, net 15,337 19,222 20,778
Other assets 55,570 50,701 42,026
------------- ------------- -------------
Total assets $ 1,933,146 $ 2,127,580 $ 2,057,378
============= ============= =============
Liabilities and Stockholders'
Equity
Liabilities:
Deposits:
Noninterest-bearing demand $ 358,447 $ 366,103 $ 366,308
Interest-bearing demand 505,706 523,971 472,418
Savings 76,429 71,816 72,483
Time 571,897 731,400 721,227
------------- ------------- -------------
Total deposits 1,512,479 1,693,290 1,632,436
------------- ------------- -------------
Securities sold under
agreements to repurchase and
federal funds purchased 17,951 22,990 12,424
Borrowings 164,242 164,364 164,420
Subordinated debentures 41,239 41,239 41,239
Interest payable and other
liabilities 11,641 13,059 11,189
------------- ------------- -------------
Total liabilities 1,747,552 1,934,942 1,861,708
------------- ------------- -------------
Stockholders' equity:
Preferred stock and
Additional paid-in capital
- Preferred stock 63,372 59,227 57,883
Common stock and Additional
paid-in capital - Common
stock 619,240 618,408 618,011
Shares to be issued for
deferred compensation
obligations 237 199 156
Accumulated deficit (396,976) (382,599) (379,325)
Accumulated other
comprehensive income (loss) 2,209 (143) 1,387
Treasury Stock (102,488) (102,454) (102,442)
------------- ------------- -------------
Total stockholders'
equity 185,594 192,638 195,670
------------- ------------- -------------
Total liabilities and
stockholders' equity $ 1,933,146 $ 2,127,580 $ 2,057,378
============= ============= =============
GUARANTY BANCORP AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2010 2009 2010 2009
---------- ---------- ---------- ----------
(In thousands, except share and per share data)
Interest income:
Loans, including fees $ 19,012 $ 21,710 $ 59,245 $ 67,994
Investment securities:
Taxable 1,966 751 5,097 2,067
Tax-exempt 682 763 2,106 2,295
Dividends 185 184 552 670
Federal funds sold and
other 77 61 296 78
---------- ---------- ---------- ----------
Total interest income 21,922 23,469 67,296 73,104
---------- ---------- ---------- ----------
Interest expense:
Deposits 3,688 6,581 12,395 20,616
Securities sold under
agreement to repurchase
and federal funds
purchased 26 29 102 98
Borrowings 1,329 1,323 3,944 3,956
Subordinated debentures 683 625 1,894 1,945
---------- ---------- ---------- ----------
Total interest expense 5,726 8,558 18,335 26,615
---------- ---------- ---------- ----------
Net interest income 16,196 14,911 48,961 46,489
Provision for loan losses 2,500 20,000 14,900 41,110
---------- ---------- ---------- ----------
Net interest income,
after provision for
loan losses 13,696 (5,089) 34,061 5,379
Noninterest income:
Customer service and
other fees 2,343 2,281 6,811 7,314
Gain (loss) on sale of
securities 82 (1) 97 (1)
Gain on sale of loans - - 1,196 -
Other 128 242 596 734
---------- ---------- ---------- ----------
Total noninterest
income 2,553 2,522 8,700 8,047
Noninterest expense:
Salaries and employee
benefits 6,551 6,536 19,586 19,987
Occupancy expense 1,890 1,908 5,616 5,755
Furniture and equipment 850 1,103 2,793 3,381
Amortization of
intangible assets 1,285 1,559 3,885 4,722
Other real estate owned,
net 7,836 1,654 13,700 2,617
Insurance and assessments 1,596 1,688 5,233 4,924
Professional fees 677 516 2,293 2,261
Other general and
administrative 2,027 2,517 6,151 7,012
---------- ---------- ---------- ----------
Total noninterest
expense 22,712 17,481 59,257 50,659
---------- ---------- ---------- ----------
Loss before income
taxes (6,463) (20,048) (16,496) (37,233)
Income tax expense
(benefit) (2,456) (3,147) (6,290) (9,911)
---------- ---------- ---------- ----------
Net income (loss) (4,007) (16,901) (10,206) (27,322)
Preferred stock dividends (1,421) - (4,171) -
---------- ---------- ---------- ----------
Net loss applicable to
common stockholders $ (5,428) $ (16,901) $ (14,377) $ (27,322)
========== ========== ========== ==========
Loss per common
share-basic: $ (0.11) $ (0.33) $ (0.28) $ (0.53)
Loss per common
share-diluted: (0.11) (0.33) (0.28) (0.53)
Weighted average common
shares outstanding-basic 51,698,129 51,416,909 51,655,592 51,347,916
Weighted average common
shares outstanding-diluted 51,698,129 51,416,909 51,655,592 51,347,916
GUARANTY BANCORP AND SUBSIDIARIES
Unaudited Consolidated Average Balance Sheets
-------------------------------- ---------------------
QTD Average YTD Average
-------------------------------- ---------------------
September December September September September
30, 2010 31, 2009 30, 2009 30, 2010 30, 2009
---------- ---------- ---------- ---------- ----------
(In thousands)
Assets
Interest earning
assets
Loans, net of
unearned discount $1,351,752 $1,578,761 $1,627,066 $1,420,534 $1,722,321
Securities 345,650 228,608 153,657 292,913 142,353
Other earning
assets 122,658 176,049 101,585 157,943 42,133
---------- ---------- ---------- ---------- ----------
Average earning
assets 1,820,060 1,983,418 1,882,308 1,871,390 1,906,807
Other assets 142,768 133,839 140,371 137,991 126,262
---------- ---------- ---------- ---------- ----------
Total average assets $1,962,828 $2,117,257 $2,022,679 $2,009,381 $2,033,069
========== ========== ========== ========== ==========
Liabilities and
Stockholders'
Equity
Average liabilities:
Average deposits:
Noninterest-bearing
deposits $ 347,288 $ 363,177 $ 345,831 $ 350,777 $ 395,827
Interest-bearing
deposits 1,181,290 1,320,410 1,259,751 1,226,826 1,230,152
---------- ---------- ---------- ---------- ----------
Average deposits 1,528,578 1,683,587 1,605,582 1,577,603 1,625,979
Other
interest-bearing
liabilities 223,047 223,835 218,491 223,773 223,659
Other liabilities 20,543 11,979 12,120 15,926 11,573
---------- ---------- ---------- ---------- ----------
Total average
liabilities 1,772,168 1,919,401 1,836,193 1,817,302 1,861,211
Average
stockholders'
equity 190,660 197,856 186,486 192,079 171,858
---------- ---------- ---------- ---------- ----------
Total average
liabilities and
stockholders'
equity $1,962,828 $2,117,257 $2,022,679 $2,009,381 $2,033,069
========== ========== ========== ========== ==========
GUARANTY BANCORP
Unaudited Credit Quality Measures
Quarter Ended
-----------------------------------------------------
September June 30, March 31, December September
30, 2010 2010 2010 31, 2009 30, 2009
--------- --------- --------- --------- ---------
(Dollars in thousands)
Nonaccrual loans
and leases, not
restructured $ 65,921 $ 64,339 $ 70,500 $ 59,584 $ 81,035
Other nonperforming
loans 4,420 1,065 558 123 150
--------- --------- --------- --------- ---------
Total
nonperforming
loans $ 70,341 $ 65,404 $ 71,058 $ 59,707 $ 81,185
--------- --------- --------- --------- ---------
Other real estate
owned and
foreclosed
assets 45,700 30,298 30,918 37,192 32,246
--------- --------- --------- --------- ---------
Total
nonperforming
assets $ 116,041 $ 95,702 $ 101,976 $ 96,899 $ 113,431
========= ========= ========= ========= =========
Impaired loans $ 70,341 $ 65,404 $ 71,058 $ 59,707 $ 81,185
Allocated allowance
for loan losses (3,539) (3,716) (10,802) (6,603) (7,515)
--------- --------- --------- --------- ---------
Net investment in
impaired loans $ 66,802 $ 61,688 $ 60,256 $ 53,104 $ 73,670
========= ========= ========= ========= =========
Accruing loans
past due 90 days
or more $ 4,420 $ 1,065 $ 558 $ 123 $ 9,140
========= ========= ========= ========= =========
Accruing loans
past due 30-89
days $ 21,876 $ 33,050 $ 21,956 $ 21,709 $ 52,443
========= ========= ========= ========= =========
Charged-off loans $ 7,953 $ 13,918 $ 4,271 $ 7,618 $ 14,618
Recoveries (485) (369) (295) (566) (615)
--------- --------- --------- --------- ---------
Net charge-offs $ 7,468 $ 13,549 $ 3,976 $ 7,052 $ 14,003
========= ========= ========= ========= =========
Provision for loan
loss $ 2,500 $ 8,400 $ 4,000 $ 10,005 $ 20,000
========= ========= ========= ========= =========
Allowance for loan
losses $ 41,898 $ 46,866 $ 52,015 $ 51,991 $ 49,038
========= ========= ========= ========= =========
Allowance for loan
losses to loans,
net of unearned
discount 3.25% 3.41% 3.62% 3.42% 3.09%
Allowance for loan
losses to
nonaccrual loans 63.56% 72.84% 73.78% 87.26% 60.51%
Allowance for loan
losses to
nonperforming
assets 36.11% 48.97% 51.01% 53.65% 43.23%
Allowance for loan
losses to
nonperforming loans 59.56% 71.66% 73.20% 87.08% 60.40%
Nonperforming assets
to loans, net of
unearned discount,
and other real
estate owned 8.69% 6.81% 6.96% 6.22% 7.00%
Nonperforming assets
to total assets 6.00% 4.82% 5.02% 4.55% 5.51%
Nonaccrual loans to
loans, net of
unearned discount 5.11% 4.68% 4.91% 3.92% 5.11%
Nonperforming loans
to loans, net of
unearned discount 5.45% 4.76% 4.95% 3.93% 5.11%
Annualized net
charge-offs to
average loans 2.19% 3.83% 1.08% 1.77% 3.42%
Contact Information: Contact: Daniel M. Quinn President & Chief Executive Officer Guaranty Bancorp 1331 Seventeenth Street, Suite 300 Denver, CO 80202 303/313-6763 Paul W. Taylor E.V.P., Chief Financial & Operating Officer & Secretary Guaranty Bancorp 1331 Seventeenth Street, Suite 300 Denver, CO 80202 303/293-5563