Guaranty Bancorp Announces 2010 Third Quarter Financial Results


DENVER, CO--(Marketwire - October 27, 2010) - Guaranty Bancorp (NASDAQ: GBNK)

--  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 (NASDAQ: GBNK) today reported third quarter 2010 net loss of $4.0 million, or $0.11 loss per basic and diluted common share including the effect of preferred stock dividends, compared to a third quarter 2009 net loss of $16.9 million, or $0.33 loss per basic and diluted common share. The favorable decline in net loss in the third quarter 2010 as compared to the same period in 2009 is due mostly to a $17.5 million reduction in the provision for loan losses and a $1.3 million increase in net interest income, partially offset by a $6.2 million increase in write-downs related to other real estate owned.

Dan Quinn, Guaranty Bancorp President and CEO, stated, "We made progress on several fronts during the quarter. Net interest margin improved by 39 basis points over the same quarter in 2009 and by 6 basis points compared to the second quarter 2010. This improvement is due to increases in loan yields and decreases in the cost of funds. Even though our total nonperforming assets increased during the third quarter, overall classified assets and watch list loans declined during the third quarter and have declined by approximately 25% and 48%, respectively, during the past twelve months. Furthermore, there is an additional $26.4 million of other real estate owned properties scheduled for sale which are currently under either a signed purchase agreement or letter of intent. We believe that these pending transactions will close in the fourth quarter 2010."

Mr. Quinn continued, "Our total capital ratio improved during the quarter and is at the highest level in our Company's history. With respect to expenses, nearly all categories of our core expenses are down or flat on a year-to-date basis compared to 2009. The exceptions are valuation adjustments related to other real estate owned and our insurance assessments. However, in the third quarter we realized a reduction in our FDIC insurance costs and expect that our FDIC insurance costs will continue to decline in the fourth quarter 2010 and into 2011."

The Company's net loss for the first nine months of 2010 was $10.2 million, or $0.28 loss per basic and diluted common share including the effect of preferred stock dividends, as compared to a net loss of $27.3 million, or $0.53 loss per basic and diluted common share for the same period in 2009. The primary causes for the decrease in the net loss year-to-date in 2010 as compared to 2009 is a $26.2 million decrease in the provision for loan losses and a $2.5 million increase in net interest income, partially offset by higher write-offs and expenses related to other real estate owned.

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

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