Guaranty Bancorp Announces 2010 First Quarter Financial Results

DENVER, CO, Apr 22 (MARKET WIRE) --
Guaranty Bancorp (NASDAQ: GBNK)

-- Net interest margin increased to 3.50%, the second consecutive
quarterly increase
-- Provision for loan losses decreased by 60% as compared to the
previous quarter
-- Quarterly charge-offs at the lowest level since 2008
-- Total capital ratio increased to 14.28%, an all-time high

Guaranty Bancorp (NASDAQ: GBNK) today reported a first quarter 2010
net loss of $1.8 million, or $0.06 loss per basic and diluted common share
after giving effect to preferred stock dividends, compared to a first
quarter 2009 net income of $0.4 million, or $0.01 earnings per basic and
diluted common share. The primary reason for the decrease from the prior
year period is a $1.5 million increase in the provision for loan losses,
as well as a $2.7 million increase in noninterest expense primarily from
higher other real estate expenses. These items were partially offset by a
$0.9 million increase in net interest income and a tax benefit on these
items.

Dan Quinn, Guaranty Bancorp President and CEO, stated, "I continue to be
encouraged by the improvement in our asset quality trends. First quarter
charge-offs were 44% lower than the fourth quarter 2009 charge-offs and
60% lower than the first quarter 2009 charge-offs. Since September 30,
2009, our nonperforming assets have declined by over 10%. The provision
for loan losses declined by 60% from the previous quarter to $4.0 million
during the first quarter 2010 due mostly to a continued decline in
overall classified assets. This is the second consecutive quarter of
significant declines in the provision for loan losses as the fourth
quarter 2009 provision for loan losses was 50% lower than the third
quarter 2009. "

Mr. Quinn continued, "Our net interest margin also increased for the
second consecutive quarter to 3.50% in the first quarter 2010, compared
to 3.26% in the prior quarter. Although we continued to maintain a
significant balance of low-yielding overnight funding, the net interest
margin increased primarily due to higher loan yields and lower deposit
costs."

Key Financial Measures

Income Statement

Quarter Ended
---------------------------------------
March 31, December 31, March 31,
2010 2009 2009
----------- ----------- -----------

Earnings (loss) per common
share-basic & diluted $ (0.06) $ (0.07) $ 0.01
Return on average assets (0.36%) (0.35%) 0.09%
Net Interest Margin 3.50% 3.26% 3.26%

Balance Sheet

March 31, December 31, March 31,
2010 2009 % Change 2009 % Change
--------- --------- -------- --------- --------
(Dollars in thousands, except per share amounts)
Cash and cash
equivalents $ 222,723 $ 234,483 (5.0)% $ 34,982 536.7 %
Total investments 252,393 248,236 1.7 % 139,387 81.1 %
Total loans, net of
unearned discount 1,435,071 1,519,608 (5.6)% 1,757,103 (18.3)%
Loans held for sale 11,506 9,862 16.7 % 5,175 122.3 %
Allowance for loan
losses (52,015) (51,991) 0.0 % (37,598) 38.3 %
Total assets 2,030,331 2,127,580 (4.6)% 2,036,395 (0.3)%
Average assets,
quarter-to-date 2,066,930 2,117,257 (2.4)% 2,065,680 0.1 %
Total deposits 1,602,884 1,693,290 (5.3)% 1,639,797 (2.3)%
Book value per
common share 2.44 2.50 (2.5)% 3.11 (21.6)%
Tangible book value
per common share 2.10 2.13 (1.4)% 2.66 (21.0)%
Tangible book value
per common share
(after giving effect
to conversion of
preferred stock) 1.98 2.00 (0.9)% 2.66 (25.5)%
Book value of
preferred stock 60,580 59,227 2.3 % None N/A
Liquidation value of
preferred stock 61,787 60,434 2.2 % None N/A
Equity ratio - GAAP 9.41% 9.05% 4.0 % 8.03% 17.1 %
Tangible equity
ratio 8.60% 8.23% 4.5 % 6.94% 23.9 %
Total risk-based
capital ratio 14.28% 13.80% 3.5 % 10.82% 32.0 %

Net Interest Income and Margin

Quarter Ended
----------------------------------------------------
March 31, December September June 30, March 31,
2010 31, 2009 30, 2009 2009 2009
--------- --------- --------- --------- ---------
(Dollars in thousands)

Net interest income $ 16,632 $ 16,284 $ 14,911 $ 15,860 $ 15,718
Interest rate spread 3.10% 2.81% 2.65% 2.77% 2.62%
Net interest margin 3.50% 3.26% 3.14% 3.38% 3.26%
Net interest margin,
fully tax equivalent 3.58% 3.34% 3.23% 3.46% 3.34%

First quarter 2010 net interest income of $16.6 million increased by
$0.3 million from the fourth quarter 2009, and increased $0.9 million
from the first quarter 2009. The Company's net interest margin of 3.50%
for the first quarter 2010 reflected an increase of 24 basis points from
both the fourth quarter 2009 and the first quarter 2009. The increase in
net interest margin and net interest spread in the first quarter 2010, as
compared to the fourth quarter 2009, is primarily a result of an increase
in loan yields and a reduction in the cost of deposits during the first
quarter 2010. Loan yields were 5.65% for the first quarter 2010 as
compared to 5.44% in the fourth quarter 2009, an increase of 21 basis
points. The cost of deposits (excluding noninterest-bearing demand
deposits) was 1.49% for the first quarter 2010 as compared to 1.74% in the
previous quarter, a decline of 25 basis points. The $0.9 million increase
in net interest income in the first quarter 2010 as compared to the same
quarter in 2009 is primarily due to a $4.8 million favorable rate variance
which was mostly offset by a $3.9 million unfavorable volume variance. The
favorable rate variance is primarily attributable to a 48 basis point
increase in loan yields in the first quarter 2010 as compared to the same
period in 2009, as well as a 74 basis point decline in the overall cost of
funds over the same period. Loan yields increased as a result of loan
repricing with minimum rates established on loan renewals throughout 2009.
The overall cost of funds declined primarily due to a 137 basis point
decrease in time deposit rates as certificates of deposit repriced to
lower rates upon renewal. The unfavorable volume variance is primarily a
result of a $316.1 million decline in average loan balances in the first
quarter 2010 as compared to the same quarter in 2009.

Noninterest Income

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

Quarter Ended
------------------------------------------------
March 31, December September June 30, March 31,
2010 31, 2009 30, 2009 2009 2009
--------- -------- -------- --------- --------
(In thousands)
Noninterest income:
Customer service and
other fees $ 2,214 $ 2,206 $ 2,281 $ 2,354 $ 2,679
Gain (loss) on sale of
securities 14 (1) (1) - -
Other 194 127 242 277 215
--------- -------- -------- --------- --------
Total noninterest income $ 2,422 $ 2,332 $ 2,522 $ 2,631 $ 2,894
========= ======== ======== ========= ========

Noninterest income for the first quarter 2010 remained relatively
flat as compared to the fourth quarter 2009, and declined by
approximately $0.5 million from the first quarter 2009.

The decline in noninterest income in the first quarter 2010 as compared to
the same quarter in 2009 is mostly due to customer service and other fees,
which declined primarily as a result of a $0.2 million decrease in
analysis account fees due to lower activity, as well as a net $0.3
million decline in all other fee income.

Noninterest Expense

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

Quarter Ended
------------------------------------------------
March 31, December September June 30, March 31,
2010 31, 2009 30, 2009 2009 2009
--------- --------- --------- --------- --------
(In thousands)
Noninterest expense:
Salaries and employee
benefits $ 6,563 $ 6,560 $ 6,536 $ 6,712 $ 6,739
Occupancy expense 1,890 1,854 1,908 1,926 1,921
Furniture and equipment 976 1,060 1,103 1,147 1,131
Amortization of
intangible assets 1,300 1,556 1,559 1,581 1,582
Other real estate owned 2,749 3,281 1,654 915 48
Insurance and assessments 1,812 1,612 1,688 2,195 1,041
Professional fees 877 963 516 896 849
Other general and
administrative 1,959 2,860 2,517 2,342 2,149
--------- --------- --------- --------- --------
Total noninterest expense $ 18,126 $ 19,746 $ 17,481 $ 17,718 $ 15,460
========= ========= ========= ========= ========

Noninterest expense for the first quarter 2010 decreased by $1.6
million as compared to the fourth quarter 2009 and increased by $2.7
million from the first quarter 2009.

The $1.6 million decline in noninterest expense in the first quarter 2010
as compared to the fourth quarter 2009 is due mostly to a $0.9 million
decline in other general and administrative expense, a $0.5 million
decline in other real estate owned expense and a $0.3 million decline in
amortization of intangible assets. The decrease in other general and
administrative expenses is due to several decreases in miscellaneous other
expenses. The decline in other real estate owned expense is due to a
decline in write-downs on other real estate owned properties resulting
from valuation adjustments and sales. The decrease in intangible asset
amortization is due to accelerated amortization on our core deposit
intangible assets.

The $2.7 million increase in noninterest expense in the first quarter 2010
as compared to the same period in 2009 is mostly due to a $2.7 million
increase in other real estate owned expense and a $0.8 million increase in
insurance and assessments. These increases were partially offset by a $0.2
million decrease in salaries and employee benefits, a combined $0.2
million decrease in occupancy and furniture & equipment expense, a $0.3
million decrease in amortization of intangible assets and a $0.2 million
decrease in other general and administrative expense. The $2.7 million
increase in other real estate owned expense in the first quarter 2010 as
compared to the same period in 2009 is due to write-downs on other real
estate owned properties resulting from valuation adjustments and sales.
The $0.8 million increase in insurance and assessments is mostly due to
higher FDIC insurance premiums in 2010 as compared to 2009.

Preferred Stock Dividend

On February 15, 2010, a non-cash preferred stock dividend was paid in the
form of additional shares of Series A convertible preferred stock to
holders of Series A convertible preferred stock in the amount of $1.4
million. The effect of this preferred stock dividend was to increase the
loss allocable to common shareholders as reflected in the earnings (loss)
per common share computation.

Balance Sheet

March 31, December March 31,
2010 31, 2009 % Change 2009 % Change
---------- ---------- ------- ---------- -------
(Dollars in thousands, except per share amounts)
Total assets $2,030,331 $2,127,580 (4.6)% $2,036,395 (0.3)%
Average assets,
quarter-to-date 2,066,930 2,117,257 (2.4)% 2,065,680 0.1 %
Loans, net of
unearned discount 1,435,071 1,519,608 (5.6)% 1,757,103 (18.3)%
Total deposits 1,602,884 1,693,290 (5.3)% 1,639,797 (2.3)%

Equity ratio - GAAP 9.41% 9.05% 4.0 % 8.03% 17.1 %
Tangible equity
ratio 8.60% 8.23% 4.5 % 6.94% 23.9 %

At March 31, 2010, total assets of $2.0 billion declined by $97.2
million, or 4.6%, as compared to December 31, 2009 and remained
relatively flat as compared to March 31, 2009. The decline in assets from
December 31, 2009 is mostly due to an $84.5 million decline in loans, net
of unearned discount. Most of this decrease was in commercial loans. The
decline in commercial loans is partly attributable to planned efforts by
the bank to reduce lower yielding syndicated and participated loans.

Although total assets remained relatively flat at March 31, 2010 as
compared to March 31, 2009, there was a change in the mix of assets as
total loans declined by $322 million, while investment securities
increased by $113 million and cash and cash equivalents increased by $187
million. The increase in cash and cash equivalents is primarily a result
of management's decision to improve the bank's overall liquidity position.
Management continues to evaluate alternatives to utilize this additional
low-yielding liquidity in the existing interest-rate environment in order
to improve our future net interest margin.

The GAAP equity ratio and tangible equity ratio increased at March 31,
2010 as compared to December 31, 2009. Additionally, both the GAAP equity
ratio and tangible equity ratio increased significantly from March 31,
2009, primarily as a result of the issuance of $57.8 million, net of
expenses, of convertible preferred stock in August 2009.

The following table sets forth the amounts of our loans outstanding
(excluding loans held for sale) at the dates indicated:

March 31, December 31, March 31,
2010 2009 2009
----------- ----------- -----------
(In thousands)
Loans on real estate:
Residential and commercial $ 748,135 $ 760,719 $ 658,982
Construction 111,231 105,612 250,665
Equity lines of credit 53,014 54,852 52,679
Commercial loans 448,908 521,016 714,218
Agricultural loans 17,203 18,429 22,686
Lease financing 4,014 4,011 3,547
Installment loans to individuals 34,986 36,175 38,220
Overdrafts 612 358 987
SBA and other 19,396 20,997 18,294
----------- ----------- -----------
1,437,499 1,522,169 1,760,278
Unearned discount (2,428) (2,561) (3,175)
----------- ----------- -----------
Loans, net of unearned discount $ 1,435,071 $ 1,519,608 $ 1,757,103
=========== =========== ===========

There were $912.4 million of real estate loans at March 31, 2010 as
compared to $921.2 million at December 31, 2009, a decrease of $8.8
million as management continues efforts to decrease its exposure to
residential and commercial real-estate.

The $139.4 million decrease in construction loans, and the $89.2 million
increase in residential and commercial real estate loans at March 31, 2010
as compared to March 31, 2009 is partially due to reclassifying $124.0
million of construction loans to residential and commercial real estate
loans because of the completion of the underlying building projects and
the commencement of amortization on these loans. A portion of the
remainder of the decrease in construction loans was a result of payoffs
on existing loans, as well as moving loans to other real estate owned
during 2009 and 2010.

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

March 31, December 31, March 31,
2010 2009 2009
------------ ------------ ------------
(In thousands)
Noninterest bearing deposits $ 363,059 $ 366,103 $ 422,509
Interest bearing demand 165,315 171,844 140,110
Money market 321,603 352,127 285,164
Savings 74,537 71,816 72,157
Time 678,370 731,400 719,857
------------ ------------ ------------
Total deposits $ 1,602,884 $ 1,693,290 $ 1,639,797
============ ============ ============

Total deposits decreased by $90.4 million to $1.60 billion at March
31, 2010 as compared to $1.69 billion at December 31, 2009, and decreased
by $36.9 million as compared to $1.64 billion at March 31, 2009. The
overall decrease in deposits during the first quarter 2010 is mostly due
to a $53.0 million decline in time deposits and a $30.5 million decline
in money markets due mostly to seasonal fluctuations of customer balances.

Borrowings were $164.3 million at March 31, 2010 as compared to $164.4
million at December 31, 2009, and $164.5 million at March 31, 2009. The
entire balance of borrowings at each balance sheet date consisted of term
advances with the Federal Home Loan Bank.

Regulatory Capital Ratios

The Company's and the subsidiary bank's capital ratios increased at March
31, 2010 as compared to December 31, 2009 due to a decrease in
risk-weighted assets. All of the regulatory capital ratios are above the
highest regulatory capital requirement of "well-capitalized" at March 31,
2010. The Company's and the subsidiary bank's actual capital ratios for
March 31, 2010 and December 31, 2009 are presented in the table below:

Minimum
Requirement
Ratio at Ratio at Minimum for "Well
March 31, December Capital Capitalized"
2010 31, 2009 Requirement Institution
--------- --------- --------- ---------

Total Risk-Based Capital Ratio:
Consolidated 14.28% 13.80% 8.00% N/A
Guaranty Bank and Trust
Company 13.40% 12.82% 8.00% 10.00%
Tier 1 Risk-Based Capital
Ratio:
Consolidated 9.64% 9.43% 4.00% N/A
Guaranty Bank and Trust
Company 12.12% 11.55% 4.00% 6.00%
Leverage Ratio:
Consolidated 7.94% 7.89% 4.00% N/A
Guaranty Bank and Trust
Company 9.90% 9.66% 4.00% 5.00%

Generally, the allowance for loan losses is included in total capital
for regulatory purposes; however, it is limited to 1.25% of total
risk-weighted assets. At March 31, 2010, approximately $30.7 million of
the subsidiary bank's allowance for loan losses is disallowed from being
included in total risk-based capital under the regulatory capital rules,
or approximately 1.84% of the subsidiary bank's risk-weighted assets.

Asset Quality

The following table presents selected asset quality data (excluding loans
held for sale) as of the dates indicated:

March 31, December September June 30, March 31,
2010 31, 2009 30, 2009 2009 2009
--------- --------- --------- --------- ---------
(Dollars in thousands)

Nonaccrual loans,
not restructured $ 70,500 $ 59,584 $ 81,035 $ 52,483 $ 57,299
Other nonperforming
loans 558 123 150 2,671 911
--------- --------- --------- --------- ---------

Total nonperforming
loans (NPLs) $ 71,058 $ 59,707 $ 81,185 $ 55,154 $ 58,210
Other real estate
owned and
foreclosed assets 30,918 37,192 32,246 34,746 14,524
--------- --------- --------- --------- ---------

Total nonperforming
assets (NPAs) $ 101,976 $ 96,899 $ 113,431 $ 89,900 $ 72,734
========= ========= ========= ========= =========

Accruing loans past
due 90 days or more
(1) $ 558 $ 123 $ 9,140 $ 2,671 $ 911
========= ========= ========= ========= =========

Accruing loans past
due 30-89 days (1) $ 21,956 $ 21,709 $ 52,443 $ 39,836 $ 31,957
========= ========= ========= ========= =========

Allowance for loan
losses $ 52,015 $ 51,991 $ 49,038 $ 43,041 $ 37,598
========= ========= ========= ========= =========

Selected ratios:
NPLs to loans, net
of unearned
discount 4.95% 3.93% 5.11% 3.34% 3.31%
NPAs to total assets 5.02% 4.55% 5.51% 4.62% 3.57%
Allowance for loan
losses to NPAs 51.01% 53.65% 43.23% 47.88% 51.69%
Allowance for loan
losses to NPLs 73.20% 87.08% 60.40% 78.04% 64.59%
Allowance for loan
losses to loans,
net of unearned
discount 3.62% 3.42% 3.09% 2.61% 2.14%
Loans 30-89 days
past due to loans,
net of unearned
discount 1.53% 1.43% 3.30% 2.41% 1.82%

(1)Past due loans include both loans that are past due with respect to
payments, and loans that are past due with respect to the fact that the
loan has matured and is in the process of renewal, but continues to be
current with respect to payments.

The types of nonperforming loans (excluding loans held for sale) as of
March 31, 2010 and December 31, 2009 are as follows:

-----------------------------------------------------------
Nonperforming Loans
-----------------------------------------------------------
March 31, 2010 December 31, 2009
----------------------------- -----------------------------
Loan Related Loan Related
Balance Percent Allowance Balance Percent Allowance
--------- -------- --------- --------- -------- ---------
(Amounts in thousands)
Residential
Construction,
Land and Land
Development $ 39,931 56.2% $ 4,681 $ 25,812 43.2% $ 2,542
Other
Residential
Loans 4,054 5.7% 649 3,131 5.2% 623
Commercial and
Industrial
Loans 10,661 15.0% 1,620 18,206 30.5% 1,960
Commercial Real
Estate 16,069 22.6% 3,852 12,188 20.5% 1,468
Other 343 0.5% - 370 0.6% 10
--------- -------- --------- --------- -------- ---------
Total $ 71,058 100.0% $ 10,802 $ 59,707 100.0% $ 6,603
========= ======== ========= ========= ======== =========

The increase in nonperforming loans related to residential
construction, land and land development is primarily a result of one
syndicated credit that was downgraded by the lead bank, of which our
share is $19.1 million. The amount of the allowance for loan losses
allocated to this loan is $1.4 million. The underlying collateral on this
syndicated credit is a for-rent multifamily project which is essentially
leasing to plan; however, the loan was placed on nonaccrual status due to
issues between the borrower's parent company and the lead bank. This loan
was placed on nonaccrual status due to the lead lender's efforts to reach
a broader settlement with the borrower's parent company on this property
and other projects in which we do not participate.

The types of loans included in the accruing loans past due 30-89 days as
of March 31, 2010 and December 31, 2009 are as follows:

--------------------------------------------------
Accruing loans past due 30-89 days
--------------------------------------------------
March 31, 2010 December 31, 2009
------------------------ ------------------------
Loan Balance Percent Loan Balance Percent
------------ ----------- ------------ -----------
(Amounts in thousands)
Residential Construction,
Land and Land
Development $ 5,138 23.4% $ 10,265 47.3%
Other Residential Loans 1,382 6.3% 2,103 9.7%
Commercial and
Industrial Loans 5,027 22.9% 4,038 18.6%
Commercial Real Estate 2,268 10.3% 3,516 16.2%
Other 8,141 37.1% 1,787 8.2%
------------ ----------- ------------ -----------
Total $ 21,956 100.0% $ 21,709 100.0%
============ =========== ============ ===========

The overall level of accruing loans past due 30-89 days remains
stable with the previous quarter. The level of past due loans for the
prior two quarters reflects a significant decline when compared to the
first three quarters of 2009. At March 31, 2010, approximately $9.8
million of the $22.0 million of accruing loans past due 30-89 days were
matured and in the process of renewal. These loans are current with
respect to payments, but are considered past due as they have matured and
are expected to be renewed. Due to more conservative underwriting
requirements and pricing increases being sought, it is taking longer to
negotiate and redocument the matured loans.

Net charge-offs in the first quarter 2010 were $4.0 million as compared to
$7.1 million in the fourth quarter 2009 and $9.9 million in the first
quarter 2009. This is the lowest level of quarterly charge-offs since
2008. Impaired loans as of March 31, 2010 totaled $71.1 million compared
to $59.7 million at December 31, 2009 and $58.2 million at March 31, 2009.

The Company recorded a provision for loan losses in the first quarter 2010
of $4.0 million, as compared to $10.0 million in the fourth quarter 2009
and $2.5 million in the first quarter 2009. The first quarter 2010
provision for loan losses is 60% lower than the fourth quarter 2009. The
provision for loan losses in the first quarter consisted of an $8.1
million increase in the specific component of the allowance including
charge-offs on impaired loans, partially offset by a $4.1 million
decrease in the general component of the allowance due primarily to
declines in overall classified and watch list loans, as well as a
decrease in the balance of loans that are allocated a general component
of the allowance for loan losses.

Shares Outstanding

As of March 31, 2010, the Company had 52,825,468 shares of common stock
outstanding, including 1,330,571 shares of unvested stock awards, but
excluding 156,567 shares of common stock to be issued under its deferred
compensation plan. In addition, the company had 61,787 shares of Series A
convertible preferred stock outstanding, with a liquidation value of
$1,000 per share.

Non-GAAP Financial Measures

This press release includes non-GAAP financial measures related to
tangible assets, including tangible book value, tangible book value
(after giving effect to conversion of preferred stock), and tangible
equity ratio, which exclude intangible assets.

The Company discloses these non-GAAP financial measures to provide
meaningful supplemental information regarding the Company's operational
performance and to enhance investors' overall understanding of the
Company's core financial performance. Management believes that these
non-GAAP financial measures allow for additional transparency and are used
by some investors, analysts and other users of the Company's financial
information as performance measures. These non-GAAP financial measures
are presented for supplemental informational purposes only for
understanding the Company's operating results and should not be
considered a substitute for financial information presented in accordance
with GAAP. These non-GAAP financial measures presented by the Company may
be different from non-GAAP financial measures used by other companies.

The following non-GAAP schedule reconciles the book value per share to the
tangible book value per share and the tangible equity ratio as of the
dates
indicated:

March 31, December 31, March 31,
2010 2009 2009
----------- ----------- -----------
(Dollars in thousands, except per
share amounts)
Tangible Book Value per Common Share
Total stockholders' equity $ 190,980 $ 192,638 $ 163,573
Less: Preferred share liquidation
preference (61,787) (60,434) -
----------- ----------- -----------
Stockholders' equity attributable
to common shares 129,193 132,204 163,573
Less: Intangible assets (17,922) (19,222) (23,918)
----------- ----------- -----------
Tangible common equity $ 111,271 $ 112,982 $ 139,655
=========== =========== ===========

Number of common shares
outstanding and to be issued 52,982,035 52,952,703 52,570,986

Number of shares of preferred
stock outstanding 61,787 60,434 N/A

Number of shares of common stock
to be issued upon conversion of
preferred stock 34,326,111 33,574,444 N/A

Book value per common share $ 2.44 $ 2.50 $ 3.11
Tangible book value per common
share $ 2.10 $ 2.13 $ 2.66
Tangible book value per common
share (after giving effect to
conversion of preferred stock) $ 1.98 $ 2.00 $ 2.66

Tangible Equity Ratio
Total assets $ 2,030,331 $ 2,127,580 $ 2,036,395
Less: Intangible assets (17,922) (19,222) (23,918)
----------- ----------- -----------
Tangible assets $ 2,012,409 $ 2,108,358 $ 2,012,477
=========== =========== ===========

Equity ratio - GAAP
(Total stockholders' equity /
total assets) 9.41% 9.05% 8.03%
Tangible equity ratio
(Tangible common equity +
Preferred share liquidation
preference) / tangible assets 8.60% 8.23% 6.94%

About Guaranty Bancorp

Guaranty Bancorp is a bank holding company that operates 34 branches in
Colorado through a single bank, Guaranty Bank and Trust Company. The bank
provides banking and other financial services including real estate,
construction, commercial and industrial, energy, consumer and agricultural
loans throughout its targeted Colorado markets to consumers and small to
medium-sized businesses, including the owners and employees of those
businesses. The bank also provides trust services, including personal
trust administration, estate settlement, investment management accounts
and self-directed IRAs. More information about Guaranty Bancorp can be
found at www.gbnk.com.

Forward-Looking Statements

This press release contains forward-looking statements, which are included
in accordance with the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. In some cases, you can identify
forward-looking statements by terminology such as "may," "will," "should,"
"could," "expects," "plans," "intends," "anticipates," "believes,"
"estimates," "predicts," "potential," or "continue," or the negative of
such terms and other comparable terminology. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the Company's actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the following: failure to
maintain adequate levels of capital and liquidity to support Company's
operations; the effect of the regulatory written agreement the Company
and its bank subsidiary have entered into and potential future
supervisory action against the Company or its bank subsidiary; general
economic and business conditions in those areas in which the Company
operates; demographic changes; competition; fluctuations in interest
rates; continued ability to attract and employ qualified personnel;
ability to receive regulatory approval for our bank subsidiary to declare
dividends to the Company; adequacy of our allowance for loan losses,
changes in credit quality and the effect of credit quality on our
provision for credit losses and allowance for loan losses; changes in
governmental legislation or regulation, including, but not limited to,
any increase in FDIC insurance premiums; changes in accounting policies
and practices; changes in the deferred tax asset valuation allowance;
changes in business strategy or development plans; changes in the
securities markets; changes in consumer spending, borrowing and savings
habits; the availability of capital from private or government sources;
competition for loans and deposits and failure to attract or retain loans
and deposits; changes in the financial performance and/or condition of
our borrowers and the ability of our borrowers to perform under the terms
of their loans and other terms of credit agreements; political
instability, acts of war or terrorism and natural disasters; and
additional "Risk Factors" referenced in the Company's most recent Annual
Report on Form 10-K filed with the Securities and Exchange Commission, as
supplemented from time to time. When relying on forward-looking statements
to make decisions with respect to the Company, investors and others are
cautioned to consider these and other risks and uncertainties. The Company
can give no assurance that any goal or plan or expectation set forth in
forward-looking statements can be achieved and readers are cautioned not
to place undue reliance on such statements, which speak only as of the
date made. The forward-looking statements are made as of the date of this
press release, and the Company does not intend, and assumes no
obligation, to update the forward-looking statements or to update the
reasons why actual results could differ from those projected in the
forward-looking
statements.

GUARANTY BANCORP AND SUBSIDIARIES
Unaudited Consolidated Balance Sheets

March 31, December 31, March 31,
2010 2009 2009
----------- ----------- -----------
(In thousands)
Assets
Cash and due from banks $ 222,723 $ 234,483 $ 34,982
Federal funds sold - - 1,000
----------- ----------- -----------
Cash and cash equivalents 222,723 234,483 35,982
----------- ----------- -----------
Securities available for sale, at
fair value 219,490 221,134 99,107
Securities held to maturity 15,760 9,942 11,946
Bank stocks, at cost 17,143 17,160 28,334
----------- ----------- -----------
Total investments 252,393 248,236 139,387
----------- ----------- -----------

Loans, net of unearned discount 1,435,071 1,519,608 1,757,103
Less allowance for loan losses (52,015) (51,991) (37,598)
----------- ----------- -----------
Net loans 1,383,056 1,467,617 1,719,505
----------- ----------- -----------
Loans held for sale 11,506 9,862 5,175
Premises and equipment, net 59,587 60,267 62,386
Other real estate owned and
foreclosed assets 30,918 37,192 14,524
Other intangible assets, net 17,922 19,222 23,918
Other assets 52,226 50,701 35,518
----------- ----------- -----------
Total assets $ 2,030,331 $ 2,127,580 $ 2,036,395
=========== =========== ===========

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing demand $ 363,059 $ 366,103 $ 422,509
Interest-bearing demand 486,918 523,971 425,274
Savings 74,537 71,816 72,157
Time 678,370 731,400 719,857
----------- ----------- -----------
Total deposits 1,602,884 1,693,290 1,639,797
----------- ----------- -----------
Securities sold under agreements to
repurchase and federal funds
purchased 18,387 22,990 16,291
Borrowings 164,310 164,364 164,499
Subordinated debentures 41,239 41,239 41,239
Interest payable and other
liabilities 12,531 13,059 10,996
----------- ----------- -----------
Total liabilities 1,839,351 1,934,942 1,872,822
----------- ----------- -----------

Stockholders' equity:
Preferred stock and Additional
paid-in capital - Preferred stock 60,580 59,227 -
Common stock and Additional
paid-in capital - Common stock 618,779 618,408 617,314
Shares to be issued for deferred
compensation obligations 237 199 81
Accumulated deficit (385,804) (382,599) (351,567)
Accumulated other comprehensive
income (loss) (341) (143) 166
Treasury Stock (102,471) (102,454) (102,421)
----------- ----------- -----------
Total stockholders' equity 190,980 192,638 163,573
----------- ----------- -----------
Total liabilities and
stockholders' equity $ 2,030,331 $ 2,127,580 $ 2,036,395
=========== =========== ===========

GUARANTY BANCORP AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations

Three Months Ended March 31,
-----------------------------
2010 2009
------------- --------------
(In thousands, except share
and per share data)
Interest income:

Loans, including fees $ 20,784 $ 23,076
Investment securities:
Taxable 1,516 726
Tax-exempt 720 767
Dividends 185 288
Federal funds sold and other 116 3
------------- --------------
Total interest income 23,321 24,860
------------- --------------
Interest expense:
Deposits 4,713 7,125
Federal funds purchased and repurchase
agreements 43 38
Borrowings 1,301 1,321
Subordinated debentures 632 658
------------- --------------
Total interest expense 6,689 9,142
------------- --------------
Net interest income 16,632 15,718
Provision for loan losses 4,000 2,505
------------- --------------
Net interest income, after provision for loan
losses 12,632 13,213
Noninterest income:
Customer service and other fees 2,214 2,679
Gain on sale of securities 14 -
Other 194 215
------------- --------------
Total noninterest income 2,422 2,894
Noninterest expense:
Salaries and employee benefits 6,563 6,739
Occupancy expense 1,890 1,921
Furniture and equipment 976 1,131
Amortization of intangible assets 1,300 1,582
Other real estate owned 2,749 48
Insurance and assessments 1,812 1,041
Professional fees 877 849
Other general and administrative 1,959 2,149
------------- --------------
Total noninterest expense 18,126 15,460
------------- --------------
Income (loss) before income taxes (3,072) 647
Income tax expense (benefit) (1,227) 211
------------- --------------
Net income (loss) (1,845) 436
Preferred stock dividends (1,360) -
------------- --------------
Net income (loss) applicable to common
shareholders $ (3,205) $ 436
============= ==============

Earnings (loss) per common share-basic: $ (0.06) $ 0.01
Earnings (loss) per common share-diluted: (0.06) 0.01

Weighted average common shares
outstanding-basic 51,607,044 51,277,748
Weighted average common shares
outstanding-diluted 51,607,044 51,277,930

GUARANTY BANCORP AND SUBSIDIARIES
Unaudited Consolidated Average Balance Sheets

-----------------------------------
QTD Average
-----------------------------------
March 31, December 31, March 31,
2010 2009 2009
----------- ----------- -----------
(In thousands)
Assets
Interest earning assets
Loans, net of unearned discount $ 1,492,630 $ 1,578,761 $ 1,808,727
Securities 245,518 228,608 141,031
Other earning assets 190,302 176,049 5,175
----------- ----------- -----------
Average earning assets 1,928,450 1,983,418 1,954,933
Other assets 138,480 133,839 110,747
----------- ----------- -----------
Total average assets $ 2,066,930 $ 2,117,257 $ 2,065,680
=========== =========== ===========

Liabilities and Stockholders' Equity
Average liabilities:
Average deposits:
Noninterest-bearing deposits $ 352,937 $ 363,177 $ 432,080
Interest-bearing deposits 1,282,119 1,320,410 1,227,242
----------- ----------- -----------
Average deposits 1,635,056 1,683,587 1,659,322
Other interest-bearing liabilities 224,856 223,835 230,379
Other liabilities 13,105 11,979 12,122
----------- ----------- -----------
Total average liabilities 1,873,017 1,919,401 1,901,823
Average stockholders' equity 193,913 197,856 163,857
----------- ----------- -----------
Total average liabilities and
stockholders' equity $ 2,066,930 $ 2,117,257 $ 2,065,680
=========== =========== ===========

GUARANTY BANCORP
Unaudited Credit Quality Measures

Quarter Ended
-----------------------------------------------------
March 31, December September June 30, March 31,
2010 31, 2009 30, 2009 2009 2009
--------- --------- --------- --------- ---------
(Dollars in thousands)
Nonaccrual loans
and leases, not
restructured $ 70,500 $ 59,584 $ 81,035 $ 52,483 $ 57,299
Other nonperforming
loans 558 123 150 2,671 911
--------- --------- --------- --------- ---------
Total
nonperforming
loans $ 71,058 $ 59,707 $ 81,185 $ 55,154 $ 58,210
--------- --------- --------- --------- ---------
Other real estate
owned and
foreclosed
assets 30,918 37,192 32,246 34,746 14,524
--------- --------- --------- --------- ---------
Total
nonperforming
assets $ 101,976 $ 96,899 $ 113,431 $ 89,900 $ 72,734
========= ========= ========= ========= =========

Impaired loans $ 71,058 $ 59,707 $ 81,185 $ 55,154 $ 58,210
Allocated allowance
for loan losses (10,802) (6,603) (7,515) (7,291) (6,342)
--------- --------- --------- --------- ---------
Net investment in
impaired loans $ 60,256 $ 53,104 $ 73,670 $ 47,863 $ 51,868
========= ========= ========= ========= =========

Accruing loans past
due 90 days or more $ 558 $ 123 $ 9,140 $ 2,671 $ 911
========= ========= ========= ========= =========

Accruing loans past
due 30-89 days $ 21,956 $ 21,709 $ 52,443 $ 39,836 $ 31,957
========= ========= ========= ========= =========

Charged-off loans $ 4,271 $ 7,618 $ 14,618 $ 13,509 $ 10,262
Recoveries (295) (566) (615) (347) (367)
--------- --------- --------- --------- ---------
Net charge-offs $ 3,976 $ 7,052 $ 14,003 $ 13,162 $ 9,895
========= ========= ========= ========= =========

Provision for loan
loss $ 4,000 $ 10,005 $ 20,000 $ 18,605 $ 2,505
========= ========= ========= ========= =========

Allowance for loan
losses $ 52,015 $ 51,991 $ 49,038 $ 43,041 $ 37,598
========= ========= ========= ========= =========

Allowance for loan
losses to loans,
net of unearned
discount 3.62% 3.42% 3.09% 2.61% 2.14%
Allowance for loan
losses to
nonaccrual loans 73.78% 87.26% 60.51% 82.01% 65.62%
Allowance for loan
losses to
nonperforming
assets 51.01% 53.65% 43.23% 47.88% 51.69%
Allowance for loan
losses to
nonperforming loans 73.20% 87.08% 60.40% 78.04% 64.59%
Nonperforming assets
to loans, net of
unearned discount,
and other real
estate owned 6.96% 6.22% 7.00% 5.33% 4.11%
Nonperforming assets
to total assets 5.02% 4.55% 5.51% 4.62% 3.57%
Nonaccrual loans to
loans, net of
unearned discount 4.91% 3.92% 5.11% 3.18% 3.26%
Nonperforming loans
to loans, net of
unearned discount 4.95% 3.93% 5.11% 3.34% 3.31%
Annualized net
charge-offs to
average loans 1.08% 1.77% 3.42% 3.05% 2.22%

Contact:
Daniel M. Quinn
President & Chief Executive Officer
1331 Seventeenth Street, Suite 300
Denver, CO 80202
303/313-6763

Paul W. Taylor
E.V.P., Chief Financial & Operating Officer & Secretary
1331 Seventeenth Street, Suite 300
Denver, CO 80202
303/293-5563

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