Exhibit 99.1
Contact: | | Daniel M. Quinn | | Paul W. Taylor |
| | President & Chief Executive Officer | | E.V.P., Chief Financial & Operating Officer & Secretary |
| | 1331 Seventeenth Street, Suite 300 | | 1331 Seventeenth Street, Suite 300 |
| | Denver, CO 80202 | | Denver, CO 80202 |
| | 303/313-6763 | | 303/293-5563 |
FOR IMMEDIATE RELEASE:
Guaranty Bancorp Announces 2009 First Quarter Earnings
Denver, Colorado (April 16, 2009) — Guaranty Bancorp (Nasdaq: GBNK) today reported first quarter 2009 net income of $0.4 million, or 1 cent earnings per basic and diluted share, compared to first quarter 2008 net income of $3.2 million, or 6 cents earnings per basic and diluted share. Excluding after-tax intangible asset amortization of $1.0 million, first quarter 2009 cash net income was $1.4 million, or 3 cents per basic and diluted share, compared to first quarter 2008 cash net income of $4.4 million, or 9 cents per basic and diluted share. The decrease in net income in the first quarter 2009 as compared to the first quarter 2008 is primarily due to a decrease in net interest income and an increase to provision for loan losses, partially offset by a decrease in noninterest expense.
Dan Quinn, Guaranty Bancorp President and CEO, stated, “In the first quarter 2009, the Company continued its focus on strengthening its capital position, expanding interest margin and managing noninterest expense. Total risk-based capital increased by 21 basis points from 10.61% at December 31, 2008 to 10.82% at March 31, 2009. Although net interest margin decreased to 3.26% in the first quarter of 2009 from 3.55% in the fourth quarter of 2008, net interest margin began to recover in March 2009 as a result of higher rates on renewed and new loans and a decrease in the cost of time deposits.”
Mr. Quinn continued, “We remained relatively flat in noninterest expense compared to the prior quarter, and overall noninterest expense decreased by approximately $3.2 million, or 17.3% from the same quarter in 2008. As announced in the second quarter 2008, the Company began a major effort to better align our expenses with the current size of our business. This effort has produced a $3.7 million drop in quarterly noninterest expense from the average quarterly noninterest expense recognized in the first half of 2008.”
Key Financial Measures
| | Quarter Ended | |
| | March 31,
2009 | | December 31,
2008 | | March 31,
2008 | |
Earnings per share-basic & diluted | | $ | 0.01 | | $ | 0.07 | | $ | 0.06 | |
Cash earnings per share-basic & diluted | | $ | 0.03 | | $ | 0.10 | | $ | 0.09 | |
Return on average assets | | 0.09 | % | 0.72 | % | 0.55 | % |
Return on tangible average assets (cash) | | 0.28 | % | 0.95 | % | 0.85 | % |
Net Interest Margin | | 3.26 | % | 3.55 | % | 4.42 | % |
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Regulatory Capital Increases during the Quarter
The Company’s capital ratios increased during the first quarter of 2009 and remain above the highest regulatory capital requirement of “well-capitalized” at March 31, 2009 as follows:
| | Ratio at
March 31,
2009 | | Ratio at
December 31,
2008 | | Minimum
Capital
Requirement | | Minimum
Requirement for
“Well
Capitalized”
Institution | |
| | | | | | | | | |
Total Risk-Based Capital Ratio | | 10.82 | % | 10.61 | % | 8.00 | % | 10.00 | % |
Tier 1 Risk-Based Capital Ratio | | 9.56 | % | 9.35 | % | 4.00 | % | 6.00 | % |
Leverage Ratio | | 9.20 | % | 8.98 | % | 4.00 | % | 5.00 | % |
Net Interest Income and Margin
| | Quarter Ended | |
| | March 31,
2009 | | December 31,
2008 | | March 31,
2008 | |
| | (Dollars in thousands) | |
| | | | | | | |
Net interest income | | $ | 15,718 | | $ | 17,679 | | $ | 21,650 | |
Interest rate spread | | 2.62 | % | 2.92 | % | 3.58 | % |
Net interest margin | | 3.26 | % | 3.55 | % | 4.42 | % |
Net interest margin, fully tax equivalent | | 3.34 | % | 3.64 | % | 4.53 | % |
| | | | | | | | | | |
First quarter 2009 net interest income of $15.7 million decreased by $2.0 million from the fourth quarter 2008, and $5.9 million from the first quarter 2008. The Company’s net interest margin of 3.26% for the first quarter 2009 reflected a decline of 29 basis points from the fourth quarter 2008 and a decline of 116 basis points from the first quarter 2008. The decline in net interest margin from the first quarter 2008 to first quarter 2009 is mostly attributable to the greater than 400 basis point cuts in the target federal funds rate by the Federal Open Market Committee of the Federal Reserve Board since the beginning of the first quarter 2008. The targeted federal funds rate was 4.25% at January 1, 2008 and fell to between 0% and 0.25% on December 16, 2008, where it remains today. These historically low rates have caused a dramatic decrease to our overall net interest margin throughout 2008 and into 2009.
Although net interest margin decreased from the fourth quarter 2008, net interest margin began to recover during March 2009. In the fourth quarter of 2008, the prime rate dropped by 175 basis points, including a 75 basis point drop in December 2008. The detrimental impact of these rate changes on loan yields continued into early 2009 due to the repricing of loans with monthly, quarterly and annual loan repricing dates. January and February 2009 net interest margin were 3.19% and 3.13%, respectively. Management had begun addressing the falling interest rates in 2008 and into 2009 through the utilization of loan floors and higher pricing on renewed and new loans. The impact of these efforts lead to a recovery of net interest margin to 3.46% in March 2009. Management expects that net interest margin will continue to improve throughout 2009.
Interest income decreased by $8.5 million from $33.4 million in the first quarter 2008 to $24.9 million in the first quarter 2009. This decrease was almost entirely made up of a decrease in rates. Approximately 63% of the Company’s outstanding loan balances are variable rate loans and are generally tied to an index, such as prime or LIBOR. As a result of the decline in rates discussed
2
above, the average yield on loans for the Company decreased by 189 basis points from 7.06% for the quarter ended March 31, 2008 to 5.17% for the same period in 2009. The Company remains asset sensitive at the end of first quarter 2009 and expects that as interest rates rise, net interest income will also increase.
Interest expense decreased by $2.6 million, or 22.2%, to $9.1 million for the first quarter 2009 as compared to the first quarter 2008. The decrease in interest expense from the first quarter 2008 was primarily the result of a $3.1 million favorable rate variance and a $0.5 million unfavorable volume variance. The overall cost of funds declined by 70 basis points to 2.54% from the first quarter 2008 to the first quarter 2009, primarily as a result of the overall cost of interest bearing deposits decreasing by 73 basis points.
Noninterest Income
The following table presents noninterest income as of the dates indicated.
| | Quarter Ended | |
| | March 31,
2009 | | December 31,
2008 | | March 31,
2008 | |
| | (In thousands) | |
Noninterest income: | | | | | | | |
Customer service and other fees | | $ | 2,679 | | $ | 2,357 | | $ | 2,276 | |
Gain on sale of securities | | — | | — | | 138 | |
Other | | 236 | | (91 | ) | 101 | |
Total noninterest income | | $ | 2,915 | | $ | 2,266 | | $ | 2,515 | |
Noninterest income for the first quarter 2009 increased by $0.6 million from the fourth quarter 2008 and increased by $0.4 million from the first quarter 2008. The increase in other noninterest income in the first quarter 2009 as compared to the first quarter 2008, was primarily the result of increases in customer fee income, partially as a result of a reduction in the earnings credit rate on commercial deposit accounts.
Fluctuations in other noninterest income are primarily the result of the volatility of the fair value of assets held by the Company for purposes of funding its nonqualified deferred compensation plan. During the fourth quarter 2008, the Company recognized a $0.3 million fair value write-down (contra-income) related to the average balance of $1.1 million of assets held for purposes of funding the Company’s deferred compensation plan. These assets are required to be marked-to-market through the income statement. These write-downs of the assets held for the deferred compensation plan are almost entirely offset by a reduction to our deferred compensation liability account which reduces our overall compensation cost. Therefore, this volatility on the market value of our deferred compensation plan asset and liability accounts had no overall impact on net income.
3
Noninterest Expense
The following table presents noninterest expense as of the dates indicated.
| | Quarter Ended | |
| | March 31,
2009 | | December 31,
2008 | | March 31,
2008 | |
| | (In thousands) | |
Noninterest expense: | | | | | | | |
Salaries and employee benefits | | $ | 6,739 | | $ | 6,255 | | $ | 9,720 | |
Occupancy expense | | 1,921 | | 1,725 | | 2,001 | |
Furniture and equipment | | 1,131 | | 1,203 | | 1,314 | |
Impairment of goodwill | | — | | — | | — | |
Amortization of intangible assets | | 1,582 | | 1,803 | | 1,877 | |
Other general and administrative | | 4,108 | | 4,381 | | 3,798 | |
Total noninterest expense | | $ | 15,481 | | $ | 15,367 | | $ | 18,710 | |
Noninterest expense for the first quarter 2009 remained relatively flat as compared to the fourth quarter 2008, and decreased by $3.2 million from the first quarter 2008. The increase in salary expense from the fourth quarter 2008 is partially due to the recognition of $0.3 million of severance costs during the first quarter 2009. The decrease in noninterest expense in the first quarter 2009, as compared to the same quarter in 2008 is primarily a result of decreases in salaries and employee benefits. Overall salaries and benefits decreased primarily as a result of the major effort announced in the second quarter 2008 to better align our expenses with the current size of our business, which resulted in a decline in the number of full-time equivalent employees.
Amortization of intangible assets in the first quarter 2009 decreased by $0.2 million from the fourth quarter 2008 and decreased by $0.3 million from the first quarter 2008. These decreases are a result of the use of accelerated amortization related to our core deposit intangible assets.
Other general and administrative expense in the first quarter 2009 decreased by $0.3 million from the fourth quarter 2008 and increased by $0.3 million from the first quarter 2008. The decrease from the fourth quarter 2008 is primarily a result of a $0.3 million write-down of other real estate owned during the fourth quarter 2008. The increase of $0.3 million from the first quarter 2008 is primarily a result of an increase in Federal Deposit Insurance Corporation (FDIC) insurance premiums on our deposits.
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Balance Sheet
| | March 31,
2009 | | December 31,
2008 | | %
Change | | March 31,
2008 | | %
Change | |
| | (Dollars in thousands, except per share amounts) | |
Total loans, net of unearned discount | | $ | 1,757,103 | | $ | 1,826,333 | | (3.8 | )% | $ | 1,759,297 | | (0.1 | )% |
Loans held for sale | | 5,175 | | 5,760 | | (10.2 | )% | — | | 100.0 | % |
Allowance for loan losses | | (37,598 | ) | (44,988 | ) | (16.4 | )% | (26,048 | ) | 44.3 | % |
Total assets | | 2,036,395 | | 2,102,741 | | (3.2 | )% | 2,345,079 | | (13.2 | )% |
Average assets, quarter-to-date | | 2,065,680 | | 2,099,519 | | (1.6 | )% | 2,376,539 | | (13.1 | )% |
Total deposits | | 1,639,797 | | 1,698,651 | | (3.5 | )% | 1,710,082 | | (4.1 | )% |
Book value per share | | $ | 3.11 | | $ | 3.07 | | 1.3 | % | $ | 7.99 | | (61.1 | )% |
Tangible book value per share | | $ | 2.66 | | $ | 2.58 | | 3.1 | % | $ | 2.65 | | 0.4 | % |
Equity ratio - GAAP | | 8.03 | % | 7.68 | % | 4.6 | % | 17.97 | % | (55.3 | )% |
Tangible equity ratio | | 6.94 | % | 6.55 | % | 5.9 | % | 6.77 | % | 2.5 | % |
At March 31, 2009, the Company had total assets of $2.0 billion as compared to $2.1 billion at December 31, 2008, and $2.3 billion at March 31, 2008. The decline in assets from December 31, 2008, is primarily a result of a $69 million decrease in total loans outstanding, of which $36 million was a decrease in real estate loans and most of the remaining decrease was a result of a reduction in lower yielding syndicated and participated loans. The decline in overall assets from March 31, 2008 is mostly due to a reduction in intangible assets as a result of a non-cash goodwill impairment charge recorded in the third quarter 2008.
The following table sets forth the amounts of our loans outstanding at the dates indicated:
| | March 31,
2009 | | December 31,
2008 | | March 31,
2008 | |
| | (In thousands) | |
Loans on real estate: | | | | | | | |
Residential and commercial | | $ | 658,982 | | $ | 680,030 | | $ | 723,246 | |
Construction | | 250,665 | | 268,306 | | 238,926 | |
Equity lines of credit | | 52,679 | | 50,270 | | 47,659 | |
Commercial loans | | 714,218 | | 746,241 | | 657,423 | |
Agricultural loans | | 22,686 | | 22,738 | | 35,003 | |
Lease financing | | 3,547 | | 3,549 | | 472 | |
Installment loans to individuals | | 38,220 | | 38,352 | | 38,151 | |
Overdrafts | | 987 | | 855 | | 2,520 | |
SBA and other | | 18,294 | | 19,592 | | 19,213 | |
| | 1,760,278 | | 1,829,933 | | 1,762,613 | |
Unearned discount | | (3,175 | ) | (3,600 | ) | (3,316 | ) |
Loans, net of unearned discount | | $ | 1,757,103 | | $ | 1,826,333 | | $ | 1,759,297 | |
There were $962.3 million of real estate loans at March 31, 2009. Management continues its efforts to decrease its exposure to residential real-estate and residential land and land development loans. At March 31, 2009, there were approximately $47 million of loans secured by for-sale residential real estate and approximately $109 million of residential land and land development loans, respectively. This compares to December 31, 2008, with approximately $57 million of loans secured by for-sale residential real estate and approximately $114 million of residential land and land development loans.
5
The following table sets forth the amounts of our deposits outstanding at the dates indicated:
| | March 31,
2009 | | December 31,
2008 | |
| | (In thousands) | |
Noninterest bearing deposits | | $ | 422,509 | | $ | 433,761 | |
Interest bearing demand | | 140,110 | | 145,492 | |
Money market | | 285,164 | | 315,364 | |
Savings | | 72,157 | | 68,064 | |
Time | | 719,857 | | 735,970 | |
| | | | | |
Total deposits | | $ | 1,639,797 | | $ | 1,698,651 | |
Total deposits at March 31, 2009 declined by $58.9 million, as compared to December 31, 2008. It is expected that the decline in time deposits will continue throughout 2009. At March 31, 2009, there were approximately $192 million in brokered time deposits. Approximately $71 million of brokered deposits with an average rate of 3.78% will mature during the remainder of 2009 and management does not expect to replace these maturities with new time deposits.
Noninterest bearing deposits as a percent of total deposits remained relatively unchanged at March 31, 2009, as compared to December 31, 2008. Noninterest bearing deposits comprised 25.8% of total deposits at March 31, 2009 as compared to 25.5% at December 31, 2008.
Borrowings were $164.5 million at March 31, 2009 as compared to $166.4 million at December 31, 2008, and $117.3 million at March 31, 2008. The entire balance of borrowings at each balance sheet date consisted of term advances with the Federal Home Loan Bank. The increase in the balance from March 31, 2008 to March 31, 2009, is a result of a decision in 2008 to complement increased time deposits described above with longer-term and more favorably priced FHLB term advances.
6
Asset Quality
The following table presents selected asset quality data (excluding loans held for sale) as of the dates indicated:
| | March 31,
2009 | | December 31,
2008 | | September 30,
2008 | | June 30,
2008 | | March 31,
2008 | |
| | (Dollars in thousands) | |
| | | | | | | | | | | |
Nonaccrual loans, not restructured | | $ | 57,299 | | $ | 54,594 | | $ | 54,654 | | $ | 29,742 | | $ | 20,798 | |
Accruing loans past due 90 days or more | | 911 | | 228 | | 324 | | 98 | | 1 | |
| | | | | | | | | | | |
Total nonperforming loans (NPLs) | | $ | 58,210 | | $ | 54,822 | | $ | 54,978 | | $ | 29,840 | | $ | 20,799 | |
Other real estate owned and foreclosed assets | | 14,524 | | 484 | | 1,199 | | 1,910 | | 1,715 | |
| | | | | | | | | | | |
Total nonperforming assets (NPAs) | | $ | 72,734 | | $ | 55,306 | | $ | 56,177 | | $ | 31,750 | | $ | 22,514 | |
| | | | | | | | | | | |
Accruing loans past due 30-89 days | | $ | 31,957 | | $ | 35,169 | | $ | 20,660 | | $ | 20,169 | | $ | 42,682 | |
| | | | | | | | | | | |
Allowance for loan losses | | $ | 37,598 | | $ | 44,988 | | $ | 44,765 | | $ | 26,506 | | $ | 26,048 | |
| | | | | | | | | | | |
Selected ratios: | | | | | | | | | | | |
NPLs to loans, net of unearned discount | | 3.31 | % | 3.00 | % | 3.09 | % | 1.67 | % | 1.18 | % |
NPAs to total assets | | 3.57 | % | 2.63 | % | 2.74 | % | 1.35 | % | 0.96 | % |
Allowance for loan losses to NPAs | | 51.69 | % | 81.34 | % | 79.69 | % | 83.48 | % | 115.70 | % |
Allowance for loan losses to NPLs | | 64.59 | % | 82.06 | % | 81.42 | % | 88.83 | % | 125.24 | % |
Allowance for loan losses to loans, net of unearned discount | | 2.14 | % | 2.46 | % | 2.52 | % | 1.48 | % | 1.48 | % |
Loans 30-89 days past due to loans, net of unearned discount | | 1.82 | % | 1.93 | % | 1.16 | % | 1.13 | % | 2.43 | % |
The types of nonperforming loans (excluding loans held for sale) as of March 31, 2009 and December 31, 2008 are as follows:
| | Nonperforming Loans | |
| | March 31, 2009 | | December 31, 2008 | |
| | Loan
Balance | | Percent | | Related
Allowance | | Loan Balance | | Percent | | Related
Allowance | |
| | (Amounts in thousands) | |
Residential Construction, Land and Land Development | | $ | 31,194 | | 53.6 | % | $ | 2,842 | | $ | 36,808 | | 67.1 | % | $ | 8,677 | |
Other Residential Loans | | 3,720 | | 6.4 | % | 424 | | 1,504 | | 2.7 | % | 87 | |
Commercial and Industrial Loans | | 12,262 | | 21.1 | % | 1,080 | | 10,450 | | 19.1 | % | 1,307 | |
Commercial Real Estate | | 10,962 | | 18.8 | % | 1,957 | | 5,963 | | 10.9 | % | 962 | |
Other | | 72 | | 0.1 | % | 39 | | 97 | | 0.2 | % | 31 | |
Total | | $ | 58,210 | | 100.0 | % | $ | 6,342 | | $ | 54,822 | | 100.0 | % | $ | 11,064 | |
| | | | | | | | | | | | | | | | | | | |
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The types of loans included in the accruing loans past due 30-89 days as of March 31, 2009 and December 31, 2008 are as follows:
| | Accruing loans past due 30-89 days | |
| | March 31, 2009 | | December 31, 2008 | |
| | Loan Balance | | Percent | | Loan Balance | | Percent | |
| | (Amounts in thousands) | |
Residential Construction, Land and Land Development | | $ | 20,539 | | 64.3 | % | $ | 15,029 | | 42.7 | % |
Other Residential Loan | | 153 | | 0.5 | % | 704 | | 2.0 | % |
Commercial and Industrial Loans | | 8,065 | | 25.2 | % | 16,274 | | 46.3 | % |
Commercial Real Estate | | 2,265 | | 7.1 | % | 2,334 | | 6.6 | % |
Other | | 935 | | 2.9 | % | 828 | | 2.4 | % |
Total | | $ | 31,957 | | 100.0 | % | $ | 35,169 | | 100.0 | % |
At March 31, 2009, approximately $28.4 million of the $32.0 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 on the past due listing as they have matured and need to be renewed. Approximately 95% of the loans that are past due as a result of a loan maturity are past due less than 60 days. During the last three quarters, the Company has seen an increase of approximately $10.6 million in the matured past due loan category. Due to the changing underwriting requirements and pricing increases being sought, it is taking longer to negotiate and redocument the matured loans.
The Company recorded a provision for loan losses in the first quarter 2009 of $2.5 million, as compared to $0.9 million in the first quarter 2008 and $1.3 million in the fourth quarter 2008. The higher first quarter 2009 provision for loan losses was due primarily to the impact of charge-offs on our historical loss and economic concerns components of our allowance computation.
Net chargeoffs in the first quarter 2009 were $9.9 million, as compared to $0.6 million in the first quarter 2008, and $1.0 million in the fourth quarter 2008. Of the $9.9 million in net chargeoffs, approximately $6.1 million were provided for as the result of specific allowance allocation on impaired loans as of December 31, 2008. Most of the remainder of the first quarter chargeoffs relate to a single relationship that went on nonaccrual status during the first quarter 2009 and was moved to other real estate owned at the end of the quarter. This was a result of reaching a settlement agreement with the borrower that included the bank receiving deeds in lieu of foreclosure. Impaired loans as of March 31, 2009 totaled $58.2 million, as compared to $54.8 million at the end of the fourth quarter 2008. After the chargeoffs on loans with a specific allocation at December 31, 2008, and transfers to other real estate owned, the Company added approximately $15.9 million in new impaired loans during the quarter. The majority of this increase was from three loans that were adequately collateralized, therefore, there was not an increase in the specific allowance allocation related to impaired loans during the quarter.
The allowance for loan losses to total loans outstanding was 2.14% at March 31, 2008, as compared to 2.46% at December 31, 2008 and 1.48% at March 31, 2008. The decrease in the allowance for loan losses as a percent of total loans outstanding during the first quarter 2009 is primarily a result of chargeoffs on loans with a specific allowance allocation as of December 31, 2008.
8
Shares Outstanding
As of March 31, 2009, the Company had 52,529,532 shares outstanding, including 1,237,978 shares of unvested stock awards, but excluding 41,454 of shares to be issued under its deferred compensation plan.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures related to the income statement, including cash net income, cash earnings per share and return on average tangible assets (cash), which exclude the after-tax impact of intangible asset amortization expense.
This press release also includes non-GAAP financial measures related to tangible assets, including return on average tangible assets (cash), tangible book value 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.
9
The following non-GAAP schedule reconciles cash net income and return on tangible net assets (cash) to their respective GAAP measure as of the dates indicated:
| | Quarter Ended | |
| | March 31,
2009 | | December 31,
2008 | | March 31,
2008 | |
| | (In thousands, except per share data) | |
Cash net income | | | | | | | |
GAAP net income | | $ | 436 | | $ | 3,824 | | $ | 3,245 | |
Add: Amortization of intangible assets | | 1,581 | | 1,803 | | 1,877 | |
Less: Income tax effect | | (601 | ) | (686 | ) | (713 | ) |
Cash net income | | $ | 1,416 | | $ | 4,941 | | $ | 4,409 | |
| | | | | | | |
Weighted average shares — diluted | | 51,277,930 | | 51,116,291 | | 51,049,525 | |
| | | | | | | |
Earnings per share — diluted | | $ | 0.01 | | $ | 0.07 | | $ | 0.06 | |
Add: Amortization of intangible assets (after tax effect) | | 0.02 | | 0.03 | | 0.03 | |
Cash earnings per share | | $ | 0.03 | | $ | 0.10 | | $ | 0.09 | |
| | | | | | | |
Return on tangible net assets (cash) | | | | | | | |
Cash net income | | $ | 1,416 | | $ | 4,941 | | $ | 4,409 | |
| | | | | | | |
Average total assets | | $ | 2,065,680 | | $ | 2,099,519 | | $ | 2,376,539 | |
Less: Average intangible assets | | (24,671 | ) | (26,374 | ) | (282,830 | ) |
Average tangible assets | | $ | 2,041,009 | | $ | 2,073,145 | | $ | 2,093,709 | |
| | | | | | | |
| | | | | | | |
Return on average assets - GAAP net income divided by total average assets | | 0.09 | % | 0.72 | % | 0.55 | % |
| | | | | | | |
Return on average tangible assets (cash) - cash net income divided by average tangible assets | | 0.28 | % | 0.95 | % | 0.85 | % |
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,
2009 | | December 31,
2008 | | March 31,
2008 | |
| | (Dollars in thousands, except per share amounts) | |
Tangible Book Value per Share | | | | | | | |
Stockholders’ equity | | $ | 163,573 | | $ | 161,580 | | $ | 421,461 | |
Less: Intangible assets | | (23,918 | ) | (25,500 | ) | (281,804 | ) |
Tangible equity | | $ | 139,655 | | $ | 136,080 | | $ | 139,657 | |
| | | | | | | |
Number of shares outstanding and to be issued | | 52,570,986 | | 52,654,131 | | 52,726,120 | |
Book value per share | | $ | 3.11 | | $ | 3.07 | | $ | 7.99 | |
Tangible book value per share | | $ | 2.66 | | $ | 2.58 | | $ | 2.65 | |
| | | | | | | |
Tangible Equity Ratio | | | | | | | |
Total assets | | $ | 2,036,395 | | $ | 2,102,741 | | $ | 2,345,079 | |
Less: Intangible assets | | (23,918 | ) | (25,500 | ) | (281,804 | ) |
Tangible assets | | $ | 2,012,477 | | $ | 2,077,241 | | $ | 2,063,275 | |
| | | | | | | |
Equity ratio - GAAP (stockholders’ equity / total assets) | | 8.03 | % | 7.68 | % | 17.97 | % |
Tangible equity ratio (tangible equity / tangible assets) | | 6.94 | % | 6.55 | % | 6.77 | % |
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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
Certain statements contained in this press release, including, without limitation, statements containing the words “believes”, “anticipates”, “intends”, “expects”, and words of similar import, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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: 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; costs and uncertainties related to the outcome of pending litigation; changes in business strategy or development plans; changes that occur in the securities markets; changes in governmental legislation or regulation; changes in credit quality; the availability of capital to fund the expansion of the Company’s business; the failure to obtain approval to participate in the U.S. Treasury’s Capital Purchase Program and, if such approval is obtained, the failure to complete the sale of preferred stock under such program; economic, political and global changes arising from natural disasters; the war on terrorism; conflicts in the Middle East; 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.
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GUARANTY BANCORP AND SUBSIDIARIES
Unaudited Consolidated Balance Sheets
| | March 31,
2009 | | December 31,
2008 | | March 31,
2008 | |
| | (In thousands) | |
Assets | | | | | | | |
Cash and due from banks | | $ | 34,982 | | $ | 32,189 | | $ | 51,770 | |
Federal funds sold | | 1,000 | | 13,522 | | 9,788 | |
Cash and cash equivalents | | 35,982 | | 45,711 | | 61,558 | |
Securities available for sale, at fair value | | 99,107 | | 102,874 | | 116,742 | |
Securities held to maturity | | 11,946 | | 13,114 | | 14,106 | |
Bank stocks, at cost | | 28,334 | | 28,276 | | 32,588 | |
Total investments | | 139,387 | | 144,264 | | 163,436 | |
| | | | | | | |
Loans, net of unearned discount | | 1,757,103 | | 1,826,333 | | 1,759,297 | |
Less allowance for loan losses | | (37,598 | ) | (44,988 | ) | (26,048 | ) |
Net loans | | 1,719,505 | | 1,781,345 | | 1,733,249 | |
Loans held for sale | | 5,175 | | 5,760 | | — | |
Premises and equipment, net | | 62,386 | | 63,018 | | 69,519 | |
Other real estate owned and foreclosed assets | | 14,524 | | 484 | | 1,715 | |
Goodwill | | — | | — | | 250,748 | |
Other intangible assets, net | | 23,918 | | 25,500 | | 31,056 | |
Other assets | | 35,518 | | 36,659 | | 33,798 | |
Total assets | | $ | 2,036,395 | | $ | 2,102,741 | | $ | 2,345,079 | |
| | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | |
Liabilities: | | | | | | | |
Deposits: | | | | | | | |
Noninterest-bearing demand | | $ | 422,509 | | $ | 433,761 | | $ | 473,247 | |
Interest-bearing demand | | 425,274 | | 460,856 | | 738,429 | |
Savings | | 72,157 | | 68,064 | | 71,617 | |
Time | | 719,857 | | 735,970 | | 426,789 | |
Total deposits | | 1,639,797 | | 1,698,651 | | 1,710,082 | |
Securities sold under agreements to repurchase and federal funds purchased | | 16,291 | | 21,781 | | 36,400 | |
Borrowings | | 164,499 | | 166,404 | | 117,227 | |
Subordinated debentures | | 41,239 | | 41,239 | | 41,239 | |
Interest payable and other liabilities | | 10,996 | | 13,086 | | 18,670 | |
Total liabilities | | 1,872,822 | | 1,941,161 | | 1,923,618 | |
| | | | | | | |
Stockholders’ equity: | | | | | | | |
Common stock | | 65 | | 65 | | 65 | |
Additional paid-in capital | | 617,249 | | 617,188 | | 618,382 | |
Shares to be issued for deferred compensation obligations | | 81 | | 710 | | 585 | |
Accumulated deficit | | (351,567 | ) | (352,003 | ) | (92,022 | ) |
Accumulated other comprehensive (income) loss | | 166 | | (1,302 | ) | (2,572 | ) |
Treasury Stock | | (102,421 | ) | (103,078 | ) | (102,977 | ) |
Total stockholders’ equity | | 163,573 | | 161,580 | | 421,461 | |
Total liabilities and stockholders’ equity | | $ | 2,036,395 | | $ | 2,102,741 | | $ | 2,345,079 | |
12
GUARANTY BANCORP AND SUBSIDIARIES
Unaudited Consolidated Statements of Income
| | Three Months Ended March 31, | |
| | 2009 | | 2008 | |
| | (In thousands, except share and per
share data) | |
Interest income: | | | | | |
Loans, including fees | | $ | 23,076 | | $ | 31,040 | |
Investment securities: | | | | | |
Taxable | | 726 | | 615 | |
Tax-exempt | | 767 | | 893 | |
Dividends | | 288 | | 470 | |
Federal funds sold and other | | 3 | | 385 | |
Total interest income | | 24,860 | | 33,403 | |
Interest expense: | | | | | |
Deposits | | 7,125 | | 9,795 | |
Federal funds purchased and repurchase agreements | | 38 | | 137 | |
Borrowings | | 1,321 | | 1,029 | |
Subordinated debentures | | 658 | | 792 | |
Total interest expense | | 9,142 | | 11,753 | |
Net interest income | | 15,718 | �� | 21,650 | |
Provision for loan losses | | 2,505 | | 875 | |
Net interest income, after provision for loan losses | | 13,213 | | 20,775 | |
Noninterest income: | | | | | |
Customer service and other fees | | 2,679 | | 2,276 | |
Gain on sale of securities | | — | | 138 | |
Other | | 236 | | 101 | |
Total noninterest income | | 2,915 | | 2,515 | |
Noninterest expense: | | | | | |
Salaries and employee benefits | | 6,739 | | 9,720 | |
Occupancy expense | | 1,921 | | 2,001 | |
Furniture and equipment | | 1,131 | | 1,314 | |
Amortization of intangible assets | | 1,582 | | 1,877 | |
Other general and administrative | | 4,108 | | 3,798 | |
Total noninterest expense | | 15,481 | | 18,710 | |
Income before income taxes | | 647 | | 4,580 | |
Income tax expense | | 211 | | 1,335 | |
Net income | | $ | 436 | | $ | 3,245 | |
| | | | | |
Earnings per share—basic: | | $ | 0.01 | | $ | 0.06 | |
Earnings per share—diluted: | | 0.01 | | 0.06 | |
| | | | | |
Weighted average shares outstanding-basic | | 51,277,748 | | 50,988,229 | |
Weighted average shares outstanding-diluted | | 51,277,930 | | 51,049,525 | |
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Guaranty Bancorp and Subsidiaries
Unaudited Consolidated Average Balance Sheets
| | QTD Average | |
| | March 31,
2009 | | December 31,
2008 | | March 31,
2008 | |
| | (In thousands) | |
Assets | | | | | | | |
Interest earning assets | | | | | | | |
Loans, net of unearned discount | | $ | 1,808,727 | | $ | 1,825,489 | | $ | 1,767,582 | |
Securities | | 141,031 | | 141,005 | | 159,777 | |
Other earning assets | | 5,175 | | 13,022 | | 41,796 | |
Average earning assets | | 1,954,933 | | 1,979,516 | | 1,969,155 | |
Other assets | | 110,747 | | 120,003 | | 407,384 | |
| | | | | | | |
Total average assets | | $ | 2,065,680 | | $ | 2,099,519 | | $ | 2,376,539 | |
| | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | |
Average liabilities: | | | | | | | |
Average deposits: | | | | | | | |
Noninterest-bearing deposits | | $ | 432,080 | | $ | 410,663 | | $ | 472,802 | |
Interest-bearing deposits | | 1,227,242 | | 1,275,220 | | 1,277,606 | |
Average deposits | | 1,659,322 | | 1,685,883 | | 1,750,408 | |
Other interest-bearing liabilities | | 230,379 | | 241,453 | | 180,633 | |
Other liabilities | | 12,122 | | 15,001 | | 22,958 | |
Total average liabilities | | 1,901,823 | | 1,942,337 | | 1,953,999 | |
Average stockholders’ equity | | 163,857 | | 157,182 | | 422,540 | |
Total average liabilities and stockholders’ equity | | $ | 2,065,680 | | $ | 2,099,519 | | $ | 2,376,539 | |
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Guaranty Bancorp
Unaudited Credit Quality Measures
| | Quarter Ended | |
| | March 31,
2009 | | December
31, 2008 | | September
30, 2008 | | June 30,
2008 | | March 31,
2008 | |
| | (Dollars in thousands) | |
Nonaccrual loans and leases, not restructured | | $ | 57,299 | | $ | 54,594 | | $ | 54,654 | | $ | 29,742 | | $ | 20,798 | |
Accruing loans past due 90 days or more | | 911 | | 228 | | 324 | | 98 | | 1 | |
Total nonperforming loans | | $ | 58,210 | | $ | 54,822 | | $ | 54,978 | | $ | 29,840 | | $ | 20,799 | |
Other real estate owned and foreclosed assets | | 14,524 | | 484 | | 1,199 | | 1,910 | | 1,715 | |
Total nonperforming assets | | $ | 72,734 | | $ | 55,306 | | $ | 56,177 | | $ | 31,750 | | $ | 22,514 | |
| | | | | | | | | | | |
Impaired loans | | $ | 58,210 | | $ | 54,822 | | $ | 54,978 | | $ | 29,840 | | $ | 20,799 | |
Allocated allowance for loan losses | | (6,342 | ) | (11,064 | ) | (12,825 | ) | (6,295 | ) | (5,368 | ) |
Net investment in impaired loans | | $ | 51,868 | | $ | 43,758 | | $ | 42,153 | | $ | 23,545 | | $ | 15,431 | |
| | | | | | | | | | | |
Charged-off loans | | $ | 10,262 | | $ | 2,032 | | $ | 12,779 | | $ | 673 | | $ | 743 | |
Recoveries | | (367 | ) | (1,005 | ) | (288 | ) | (231 | ) | (205 | ) |
Net charge-offs | | $ | 9,895 | | $ | 1,027 | | $ | 12,491 | | $ | 442 | | $ | 538 | |
| | | | | | | | | | | |
Provision for loan loss | | $ | 2,505 | | $ | 1,250 | | $ | 30,750 | | $ | 900 | | $ | 875 | |
| | | | | | | | | | | |
Allowance for loan losses | | $ | 37,598 | | $ | 44,988 | | $ | 44,765 | | $ | 26,506 | | $ | 26,048 | |
| | | | | | | | | | | |
Allowance for loan losses to loans, net of unearned discount | | 2.14 | % | 2.46 | % | 2.52 | % | 1.48 | % | 1.48 | % |
Allowance for loan losses to nonaccrual loans | | 65.62 | % | 82.41 | % | 81.91 | % | 89.12 | % | 125.24 | % |
Allowance for loan losses to nonperforming assets | | 51.69 | % | 81.34 | % | 79.69 | % | 83.48 | % | 115.70 | % |
Allowance for loan losses to nonperforming loans | | 64.59 | % | 82.06 | % | 81.42 | % | 88.83 | % | 125.24 | % |
| | | | | | | | | | | |
Nonperforming assets to loans, net of unearned discount, and other real estate owned | | 4.11 | % | 3.03 | % | 3.15 | % | 1.77 | % | 1.28 | % |
Nonperforming assets to total assets | | 3.57 | % | 2.63 | % | 2.74 | % | 1.35 | % | 0.96 | % |
Nonaccrual loans to loans, net of unearned discount | | 3.26 | % | 2.99 | % | 3.07 | % | 1.66 | % | 1.18 | % |
Nonperforming loans to loans, net of unearned discount | | 3.31 | % | 3.00 | % | 3.09 | % | 1.67 | % | 1.18 | % |
Annualized net charge-offs to average loans | | 2.22 | % | 0.22 | % | 2.75 | % | 0.10 | % | 0.12 | % |
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