Guaranty Bancorp Announces 2016 First Quarter Financial Results
/EINPresswire.com/ -- DENVER, CO--(Marketwired - April 20, 2016) - Guaranty Bancorp (NASDAQ: GBNK)
- Previously announced planned merger with Home State Bancorp
- Improved net income by 8.9% compared to the first quarter 2015
- Increased quarterly dividend 15% to $0.115 cents per share in the first quarter 2016
- Grew deposits by $70.9 million or 15.8% during the first quarter 2016
Guaranty Bancorp (NASDAQ: GBNK) ("we", "our" or "the Company"), a community bank holding company based in Colorado, today announced first quarter 2016 net income of $5.5 million, or $0.26 per basic and diluted common share, an increase of $0.5 million or $0.02 per basic and diluted common share as compared to the first quarter 2015.
The Company's operating earnings
"We have some very exciting initiatives in 2016 that will help to advance our growth strategy and strengthen our market share," said Paul W. Taylor, President and Chief Executive Officer. "On March 16th, we announced our planned merger with Home State Bancorp, based in Loveland, Colorado. Together, our two premier community banks will create one of the largest bank holding companies headquartered in the state of Colorado. Based on financial results as of December 31, 2015, the combined company will have approximately $3.3 billion in total assets, $2.5 billion in total deposits and $2.3 billion in total gross loans. We expect the transaction to close in the third quarter of 2016. I look forward to this exciting opportunity for our combined customers, employees and shareholders."
Mr. Taylor added, "I am equally pleased with our sustained momentum in the first quarter of 2016. We continue to remain focused on the fundamentals of our business, as evidenced by our nearly 16% growth in operating earnings as compared with the first quarter 2015, and strong balance sheet growth including a 17.7% increase in loans and an 8.8% increase in deposits over the last twelve months."
As compared to the fourth quarter 2015, the Company's first quarter 2016 operating earnings increased $0.1 million to $5.9 million. Operating return on average assets increased to 1.01% in the first quarter 2016 compared to 0.99% in the fourth quarter 2015. As compared to the fourth quarter 2015, the Company's first quarter 2016 net income decreased $0.4 million to $5.5 million primarily due to merger-related expenses incurred during the first quarter 2016. Return on average assets (GAAP) during the first quarter 2016 was 0.94% compared to 1.00% in the fourth quarter in the prior year.
Key Financial Measures
Income Statement
Three Months Ended
-----------------------------------
March 31, December 31, March 31,
2016 2015 2015
-----------------------------------
(Dollars in thousands, except per
share amounts)
Net income $ 5,535 $ 5,891 $ 5,084
Operating earnings (1) $ 5,918 $ 5,830 $ 5,109
Earnings per common share - diluted -
operating (1) $ 0.28 $ 0.27 $ 0.24
Earnings per common share - diluted $ 0.26 $ 0.28 $ 0.24
Return on average assets - operating (1) 1.01% 0.99% 0.98%
Return on average assets 0.94% 1.00% 0.98%
Return on average equity - operating (1) 10.62% 10.44% 9.86%
Return on average equity 9.93% 10.55% 9.81%
Net interest margin 3.60% 3.58% 3.84%
Efficiency ratio - tax equivalent (2) 59.92% 59.55% 62.82%
________________
(1) See reconciliation of non-GAAP financial measure to the corresponding
GAAP measurement in "Non-GAAP Financial Measures" later in this
document.
(2) The efficiency ratio equals noninterest expense adjusted to exclude
amortization of intangible assets, prepayment penalties on long-term
debt, impairment of long-lived assets and merger related expenses,
divided by the sum of tax equivalent net interest income and tax
equivalent noninterest income. To calculate tax equivalent net interest
income and noninterest income, the interest earned on tax exempt loans
and investment securities and the income earned on bank-owned life
insurance has been adjusted to reflect the amount that would have been
earned had these investments been subject to normal income taxation.
Balance Sheet
March 31, December 31, Percent March 31, Percent
2016 2015 Change 2015 Change
-------------------------------------------------------
(Dollars in thousands, except per share amounts)
Total investments $ 400,890 $ 424,692 (5.6)% $ 452,271 (11.4)%
Total loans, net of
deferred costs and
fees 1,830,246 1,814,536 0.9% 1,555,154 17.7%
Allowance for loan
losses (23,025) (23,000) 0.1% (22,500) 2.3%
Total assets 2,362,216 2,368,525 (0.3)% 2,145,452 10.1%
Total deposits 1,872,717 1,801,845 3.9% 1,721,881 8.8%
Book value per
common share 10.35 10.21 1.4% 9.71 6.6%
Tangible book value
per common share 10.12 9.97 1.5% 9.41 7.5%
Equity ratio - GAAP 9.55% 9.36% 2.0% 9.84% (2.9)%
Tangible common
equity ratio 9.36% 9.16% 2.2% 9.56% (2.1)%
Total risk-based
capital ratio 13.31% 13.24% 0.5% 13.75% (3.2)%
Assets under
management and
administration $ 704,713 $ 698,247 0.9% $ 706,844 (0.3)%
Net Interest Income and Margin
Three Months Ended
-------------------------------------
March 31, December 31, March 31,
2016 2015 2015
-------------------------------------
(Dollars in thousands)
Net interest income $ 19,995 $ 19,856 $ 18,777
Average earning assets 2,234,247 2,201,096 1,980,717
Interest rate spread 3.44% 3.43% 3.72%
Net interest margin 3.60% 3.58% 3.84%
Net interest margin, fully tax
equivalent 3.68% 3.66% 3.93%
Average cost of interest-bearing
liabilities (including noninterest-
bearing deposits) 0.35% 0.30% 0.23%
Average cost of deposits (including
noninterest-bearing deposits) 0.22% 0.20% 0.16%
Net interest income increased $1.2 million in the first quarter 2016, as compared to the same quarter in 2015, due to a $2.0 million increase in interest income, partially offset by a $0.8 million increase in interest expense. The increase in interest income was primarily the result of a $288.4 million, or 18.9% increase in average loan balances in the first quarter 2016 as compared to the same quarter in 2015. The increase in interest expense is primarily attributable to a $116.2 million increase in the Company's average FHLB borrowings compounded by an increase in the average cost of these borrowings.
In the first quarter 2016, net interest income increased $0.1 million as compared to the fourth quarter 2015, due to a $0.4 million increase in interest income, partially offset by a $0.3 million increase in interest expense. The increase in interest income during the first quarter 2016, as compared to the fourth quarter 2015, was primarily due to a $49.0 million increase in average loan balances. The increase in interest expense during the first quarter 2016, as compared to the fourth quarter 2015, was primarily due to a $65.3 million increase in average Federal Home Loan Bank (FHLB) borrowings as well as an increase in the average cost of these borrowings.
Noninterest Income
The following table presents noninterest income as of the dates indicated:
Three Months Ended
----------------------------------
March 31, December 31, March 31,
2016 2015 2015
----------------------------------
(In thousands)
Noninterest income:
Deposit service and other fees $ 2,169 $ 2,259 $ 2,035
Investment management and trust 1,280 1,225 1,334
Increase in cash surrender value of
life insurance 448 442 408
Gain on sale of securities 45 132 -
Gain on sale of SBA loans 154 143 280
Other 82 61 58
----------------------------------
Total noninterest income $ 4,178 $ 4,262 $ 4,115
==================================
First quarter 2016 noninterest income was $4.2 million as compared to $4.3 million in the fourth quarter 2015 and $4.1 million in the first quarter 2015.
Noninterest Expense
The following table presents noninterest expense as of the dates indicated:
Three Months Ended
----------------------------------
March 31, December 31, March 31,
2016 2015 2015
----------------------------------
(In thousands)
Noninterest expense:
Salaries and employee benefits $ 8,788 $ 8,643 $ 8,604
Occupancy expense 1,375 1,498 1,697
Furniture and equipment 818 801 730
Amortization of intangible assets 240 495 495
Other real estate owned, net 2 16 41
Insurance and assessment 613 603 565
Professional fees 857 700 829
Other general and administrative 3,099 2,491 2,309
----------------------------------
Total noninterest expense $ 15,792 $ 15,247 $ 15,270
==================================
Noninterest expense increased by $0.5 million to $15.8 million in the first quarter 2016 as compared to the fourth quarter 2015 and the first quarter 2015, primarily due to the $0.7 million in merger related expenses incurred during the first quarter 2016. Other offsetting variances in noninterest expense during the first quarter 2016 as compared to the fourth quarter 2015 included a $0.3 million decrease in amortization related to the use of accelerated amortization and a $0.2 million increase in professional fees. The Company's tax equivalent efficiency ratio was 59.92% for the first quarter 2016, as compared to 59.55% for the fourth quarter 2015, and 62.82% for the first quarter 2015.
Balance Sheet
March 31, December 31, Percent March 31, Percent
2016 2015 Change 2015 Change
-------------------------------------------------------
(Dollars in thousands)
Total assets $2,362,216 $ 2,368,525 (0.3)% $2,145,452 10.1%
Average assets,
quarter-to-date 2,359,180 2,327,224 1.4% 2,108,766 11.9%
Total loans, net of
deferred costs and
fees 1,830,246 1,814,536 0.9% 1,555,154 17.7%
Total deposits 1,872,717 1,801,845 3.9% 1,721,881 8.8%
Equity ratio - GAAP 9.55% 9.36% 2.0% 9.84% (2.9)%
Tangible common
equity ratio 9.36% 9.16% 2.2% 9.56% (2.1)%
At March 31, 2016, the Company had total assets of $2.4 billion, reflecting a decrease of $6.3 million as compared to December 31, 2015 and an increase of $216.8 million as compared to March 31, 2015. The $70.9 increase in total deposits during the first quarter 2016 assisted in the Company reducing its FHLB borrowings by $74.9 million from $280.8 million as of December 31, 2015 to $205.9 million as of March 31, 2016.
The following table sets forth the amount of loans outstanding at the dates indicated:
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
-------------------------------------------------------------
(In thousands)
Loans held for
sale $ - $ - $ 8 $ 423 $ 700
Commercial and
residential
real estate 1,307,854 1,281,701 1,196,209 1,146,508 1,055,219
Construction 87,753 107,170 92,473 85,516 72,505
Commercial 329,939 323,552 336,414 333,860 326,679
Agricultural 9,768 9,294 10,991 12,380 10,625
Consumer 66,829 66,288 63,517 61,870 60,008
SBA 26,811 25,645 25,911 26,975 27,419
Other 955 631 510 1,299 2,133
-------------------------------------------------------------
Total gross
loans 1,829,909 1,814,281 1,726,033 1,668,831 1,555,288
Deferred
costs and
(fees) 337 255 118 (173) (134)
-------------------------------------------------------------
Loans, net
of deferred
costs and
fees $1,830,246 $ 1,814,536 $ 1,726,151 $1,668,658 $1,555,154
=============================================================
The following table presents the changes in our loan balances at the dates indicated:
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
---------------------------------------------------------------
(In thousands)
Beginning
balance $1,814,281 $ 1,726,033 $ 1,668,831 $1,555,288 $1,541,813
New credit
extended 105,843 155,745 149,502 169,687 95,738
Net existing
credit
advanced 50,482 61,165 60,784 83,792 57,900
Net pay-
downs and
maturities (139,914) (129,189) (152,279) (138,770) (141,983)
Charge-offs
and other (783) 527 (805) (1,166) 1,820
---------------------------------------------------------------
Gross
loans 1,829,909 1,814,281 1,726,033 1,668,831 1,555,288
Deferred
costs and
(fees) 337 255 118 (173) (134)
---------------------------------------------------------------
Loans, net
of
deferred
costs and
fees $1,830,246 $ 1,814,536 $ 1,726,151 $1,668,658 $1,555,154
===============================================================
Net change -
loans
outstanding $ 15,710 $ 88,385 $ 57,493 $ 113,504 $ 13,720
During the first quarter 2016, loans net of deferred costs and fees increased $15.7 million which was comprised of a $26.2 million increase in commercial and residential real estate loans and a $6.4 million increase in commercial loans, partially offset by a $19.4 million decline in construction loans. First quarter 2016 net loan growth consisted of $156.3 million in new loans and net existing credit advanced, partially offset by $139.9 million in net loan pay-downs and maturities. In addition to contractual loan principal payments and maturities, the first quarter 2016 included $28.1 million in early payoffs related to the sale of the borrower's assets, $21.4 million in payoffs due to our strategic decision to not match certain financing terms offered by competitors, $11.7 million in pay-downs related to revolving line of credit fluctuations and $10.0 million in pay-downs of energy-related loans.
For the twelve months ended March 31, 2016, loans net of deferred costs and fees increased by $275.1 million, or 17.7%. Net loan growth was comprised of a $252.6 million increase in commercial and residential real estate loans and a $15.2 million increase in construction loans. The growth in loans was the result of the development of new customer relationships and growth in existing customer relationships. The utilization rate on commercial lines of credit was 43.0% at March 31, 2016 as compared to 41.2% at December 31, 2015 and 37.8% as of March 31, 2015. At March 31, 2016, 1-4 family residential real estate loans were $343.1 million, as compared to $349.1 million at December 31, 2015, and $262.0 million as of March 31, 2015.
The following table sets forth the amounts of deposits outstanding at the dates indicated:
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
-----------------------------------------------------------
(In thousands)
Noninterest-
bearing demand $ 631,544 $ 612,371 $ 683,797 $ 622,364 $ 659,765
Interest-bearing
demand and NOW 392,808 381,834 405,092 379,495 356,573
Money market 411,582 397,371 369,023 362,798 370,705
Savings 155,673 151,130 144,602 139,305 141,948
Time 281,110 259,139 244,815 238,037 192,890
-----------------------------------------------------------
Total deposits $1,872,717 $ 1,801,845 $ 1,847,329 $1,741,999 $1,721,881
===========================================================
At March 31, 2016, non-maturing deposits were $1.6 billion, an increase of $48.9 million as compared to December 31, 2015, and an increase of $62.6 million as compared to March 31, 2015. The increase in non-maturing deposits during the first quarter 2016 was attributable to seasonal cash fluctuations of various commercial customers in addition to new customer relationships. At March 31, 2016, noninterest-bearing deposits as a percentage of total deposits were 33.7%, as compared to 34.0% at December 31, 2015, and 38.3% at March 31, 2015.
At March 31, 2016, securities sold under agreements to repurchase were $18.7 million, a decrease of $7.7 million as compared to December 31, 2015, and a decrease of $5.2 million as compared to March 31, 2015.
Total FHLB borrowings were $205.9 million at March 31, 2016 consisting of $85.9 million of overnight advances on our subsidiary bank's, (Guaranty Bank and Trust Company) line of credit and $120.0 million in term advances. At December 31, 2015, total FHLB borrowings consisted of $185.8 million in overnight advances and $95.0 million in term advances.
Regulatory Capital Ratios
The following table provides the capital ratios of the Company and the Bank as of the dates presented, along with the applicable regulatory capital requirements:
Minimum
Ratio at Ratio at Minimum Requirement for
March 31, December 31, Capital "Well-Capitalized"
2016 2015 Requirement Institution
------------------------------------------------------
Common Equity Tier 1
Risk-Based Capital
Ratio
Consolidated 11.02% 10.94% 4.50% N/A
Guaranty Bank and
Trust Company 12.19% 11.96% 4.50% 6.50%
Tier 1 Risk-Based
Capital Ratio
Consolidated 12.18% 12.11% 6.00% N/A
Guaranty Bank and
Trust Company 12.19% 11.96% 6.00% 8.00%
Total Risk-Based
Capital Ratio
Consolidated 13.31% 13.24% 8.00% N/A
Guaranty Bank and
Trust Company 13.32% 13.09% 8.00% 10.00%
Leverage Ratio
Consolidated 10.64% 10.68% 4.00% N/A
Guaranty Bank and
Trust Company 10.66% 10.55% 4.00% 5.00%
At March 31, 2016, all of our regulatory capital ratios remained well above minimum requirements for a "well-capitalized" institution. Our Tier 1 risk-based capital ratio and total risk-based capital ratios increased as compared to our ratios at December 31, 2015 as a result of increased capital due to first quarter earnings, partially offset by growth in risk-weighted assets.
Asset Quality
The following table presents select asset quality data, including quarterly charged-off loans, recoveries and provision (credit) for loan losses as of the dates indicated:
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
-------------------------------------------------------------
(Dollars in thousands)
Nonaccrual
loans and
leases $ 13,401 $ 14,474 $ 14,512 $ 13,192 $ 13,266
Accruing loans
past due 90
days or more
(1) - - - - -
-------------------------------------------------------------
Total
nonperforming
loans (NPLs) $ 13,401 $ 14,474 $ 14,512 $ 13,192 $ 13,266
Other real
estate owned
and
foreclosed
assets 674 674 1,371 1,503 2,175
-------------------------------------------------------------
Total
nonperforming
assets (NPAs) $ 14,075 $ 15,148 $ 15,883 $ 14,695 $ 15,441
=============================================================
Total
classified
assets $ 27,191 $ 26,428 $ 31,208 $ 31,762 $ 28,637
=============================================================
Accruing loans
past due 30-
89 days (1) $ 1,398 $ 2,091 $ 3,461 $ 1,487 $ 8,368
=============================================================
Charged-off
loans $ (302) $ (66) $ (75) $ (48) $ (49)
Recoveries 311 184 101 285 82
-------------------------------------------------------------
Net
recoveries $ 9 $ 118 $ 26 $ 237 $ 33
=============================================================
Provision
(credit) for
loan losses $ 16 $ (8) $ 14 $ 113 $ (23)
=============================================================
Allowance for
loan losses $ 23,025 $ 23,000 $ 22,890 $ 22,850 $ 22,500
=============================================================
Selected
ratios:
NPLs to loans,
net of
deferred
costs and
fees (2) 0.73% 0.80% 0.84% 0.79% 0.85%
NPAs to total
assets 0.60% 0.64% 0.69% 0.65% 0.72%
Allowance for
loan losses
to NPLs 171.82% 158.91% 157.73% 173.21% 169.61%
Allowance for
loan losses
to loans, net
ofdeferred
costs and
fees (2) 1.26% 1.27% 1.33% 1.37% 1.45%
Loans 30-89
days past due
to loans, net
ofdeferred
costs and
fees (2) 0.08% 0.12% 0.20% 0.09% 0.54%
Texas ratio
(3) 5.14% 5.65% 6.09% 5.80% 6.07%
Classified
asset ratio
(4) 11.56% 11.66% 13.51% 13.87% 11.26%
______________
(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
is in the process of renewal, but continues to be current with respect
to payments.
(2) Loans, net of deferred costs and fees, exclude loans held for sale.
(3) Texas ratio is defined as total NPAs divided by subsidiary bank only
Tier 1 Capital plus allowance for loan losses.
(4) Classified asset ratio is defined as total classified assets to
subsidiary bank only Tier 1 Capital plus allowance for loan losses.
The following tables summarize past due loans held for investment by class as of the dates indicated:
90 Days + Total Total
30-89 Past Due Nonaccrual Loans,
Days Past and Still and Held for
March 31, 2016 Due Accruing Nonaccrual Past Due Investment
-----------------------------------------------------------
(In thousands)
Commercial and
residential real
estate $ 867 $ - $ 10,555 $ 11,422 $ 1,308,095
Construction - - 986 986 87,769
Commercial 80 - 854 934 330,000
Consumer 94 - 481 575 66,841
Other 357 - 525 882 37,541
-----------------------------------------------------------
Total $ 1,398 $ - $ 13,401 $ 14,799 $ 1,830,246
===========================================================
90 Days + Total Total
30-89 Past Due Nonaccrual Loans,
Days Past and Still and Held for
December 31, 2015 Due Accruing Nonaccrual Past Due Investment
-----------------------------------------------------------
(In thousands)
Commercial and
residential real
estate $ 653 $ - $ 11,905 $ 12,558 $ 1,281,881
Construction - - 986 986 107,185
Commercial 1,147 - 874 2,021 323,598
Consumer 291 - 459 750 66,297
Other - - 250 250 35,575
-----------------------------------------------------------
Total $ 2,091 $ - $ 14,474 $ 16,565 $ 1,814,536
===========================================================
During the first quarter 2016, nonperforming assets decreased by $1.1 million from December 31, 2015 and decreased by $1.4 million from March 31, 2015. The decrease in nonperforming assets at March 31, 2016 as compared to December 31, 2015 was primarily the result of the payoff during the first quarter 2016 of a single nonaccrual loan with a balance of $1.0 million as of December 31, 2015. As of March 31, 2016, nonperforming loans included one out-of-state loan participation with a balance of $9.5 million.
At March 31, 2016, classified assets represented 11.6% of bank-level Tier 1 risk-based capital plus allowance for loan losses, as compared to 11.7% at December 31, 2015, and 11.3% at March 31, 2015.
Net recoveries in first quarter 2016 were immaterial as compared to net recoveries of $0.1 million in the fourth quarter 2015, and an immaterial amount of net recoveries in the first quarter 2015. The Bank considered recoveries, historical charge-offs, level of nonperforming loans, loan growth and other factors when determining the adequacy of the allowance for loan losses and the resulting amount of loan loss provision to be recognized during the quarter.
Shares Outstanding
As of March 31, 2016, the Company had 21,790,800 shares of common stock outstanding, consisting of 20,771,800 shares of voting common stock, of which 556,944 shares were in the form of unvested stock awards, and 1,019,000 shares of non-voting common stock.
Non-GAAP Financial Measures
The Company discloses certain non-GAAP financial measures related to tangible assets, including tangible book value and tangible common equity, and operating earnings adjusted for merger related expenses, OREO expenses, debt termination expense, impairments of long-lived assets, securities gains and losses and gains or losses on the sale or disposal of other assets. The Company also discloses the following GAAP profitability metrics alongside the operating earnings equivalent: return on average assets, return on average equity and earnings per share (diluted).
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 schedule reconciles the non-GAAP operating earnings to GAAP net income as of the dates indicated:
Three Months Ended
---------------------------------------
March 31, December 31, March 31,
2016 2015 2015
---------------------------------------
(Dollars in thousands, except per
share amounts)
Net income $ 5,535 $ 5,891 $ 5,084
Expenses adjusted for:
Expenses (gains) related to other 2 16 41
real estate owned, net
Merger related expenses 675 - -
Asset impairments - - -
Impairment of long-lived assets - - -
Income adjusted for:
Gain on sale of securities (45) (132) -
(Gain) loss on sale of other
assets (14) 18 -
---------------------------------------
Pre-tax earnings adjustment 618 (98) 41
---------------------------------------
Tax effect of adjustments (1) (235) 37 (16)
---------------------------------------
Tax effected operating earnings
adjustment 383 (61) 25
---------------------------------------
Operating earnings $ 5,918 $ 5,830 $ 5,109
=======================================
Average assets $ 2,359,180 $ 2,327,224 $ 2,108,766
Average equity $ 224,179 $ 221,515 $ 210,110
Fully diluted average common shares
outstanding: 21,375,330 21,303,763 21,165,433
Earnings per common share-diluted: $ 0.26 $ 0.28 $ 0.24
Earnings per common share-diluted -
operating: $ 0.28 $ 0.27 $ 0.24
ROAA (GAAP) 0.94% 1.00% 0.98%
ROAA - operating 1.01% 0.99% 0.98%
ROAE (GAAP) 9.93% 10.55% 9.81%
ROAE - operating 10.62% 10.44% 9.86%
___________________
(1) Tax effect calculated using a combined federal and state marginal tax
rate of 38.01%
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:
Tangible Book Value per Common Share
March 31, December 31, March 31,
2016 2015 2015
---------------------------------------
(Dollars in thousands, except per
share amounts)
Total stockholders' equity $ 225,519 $ 221,639 $ 211,137
Less: Intangible assets (4,933) (5,173) (6,659)
---------------------------------------
Tangible common equity $ 220,586 $ 216,466 $ 204,478
=======================================
Number of common shares
outstanding 21,790,800 21,704,852 21,738,501
Book value per common share $ 10.35 $ 10.21 $ 9.71
Tangible book value per common
share $ 10.12 $ 9.97 $ 9.41
Tangible Common Equity Ratio
March 31, December 31, March 31,
2016 2015 2015
---------------------------------------
(Dollars in thousands)
Total stockholders' equity $ 225,519 $ 221,639 $ 211,137
Less: Intangible assets (4,933) (5,173) (6,659)
---------------------------------------
Tangible common equity $ 220,586 $ 216,466 $ 204,478
=======================================
Total assets $ 2,362,216 $ 2,368,525 $ 2,145,452
Less: Intangible assets (4,933) (5,173) (6,659)
---------------------------------------
Tangible assets $ 2,357,283 $ 2,363,352 $ 2,138,793
=======================================
Equity ratio - GAAP (total
stockholders' equity / total
assets) 9.55% 9.36% 9.84%
Tangible common equity ratio
(tangible common equity /
tangible assets) 9.36% 9.16% 9.56%
About Guaranty Bancorp
Guaranty Bancorp is a $2.4 billion financial services company that operates as the bank holding company for Guaranty Bank and Trust Company, a premier Colorado community bank. The Bank provides comprehensive financial solutions to consumers and small to medium-sized businesses that value local and personalized service. In addition to loans and depository services, the Bank also offers wealth management solutions, including trust and investment management services. 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 the Company's operations; general economic and business conditions in those areas in which the Company operates, including the impact of global and national economic conditions on our local economy; demographic changes; competition; fluctuations in interest rates; continued ability to attract and employ qualified personnel; ability to receive regulatory approval for the bank subsidiary to declare dividends to the Company; adequacy of the allowance for loan losses, changes in credit quality and the effect of credit quality on the 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 business strategy or development plans; failure or inability to complete mergers or other corporate transactions; 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; failure to recognize expected cost savings; 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 terms of other credit agreements; changes in oil and natural gas prices; 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 any forward-looking statement 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, except as may otherwise be required by law, 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,
2016 2015 2015
-------------------------------------
(In thousands)
Assets
Cash and due from banks $ 31,142 $ 26,711 $ 31,649
Securities available for sale, at fair
value 229,478 255,431 295,700
Securities held to maturity 152,213 148,761 141,969
Bank stocks, at cost 19,199 20,500 14,602
-------------------------------------
Total investments 400,890 424,692 452,271
-------------------------------------
Loans held for sale - - 700
Loans, held for investment, net of
deferred costs and fees 1,830,246 1,814,536 1,554,454
Less allowance for loan losses (23,025) (23,000) (22,500)
-------------------------------------
Net loans, held for investment 1,807,221 1,791,536 1,531,954
-------------------------------------
Premises and equipment, net 46,036 48,308 48,400
Other real estate owned and foreclosed
assets 674 674 2,175
Other intangible assets, net 4,933 5,173 6,659
Bank owned life insurance 49,279 48,909 47,795
Other assets 22,041 22,522 23,849
-------------------------------------
Total assets $2,362,216 $ 2,368,525 $2,145,452
=====================================
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing demand $ 631,544 $ 612,371 $ 659,765
Interest-bearing demand and NOW 392,808 381,834 356,573
Money market 411,582 397,371 370,705
Savings 155,673 151,130 141,948
Time 281,110 259,139 192,890
-------------------------------------
Total deposits 1,872,717 1,801,845 1,721,881
-------------------------------------
Securities sold under agreement to
repurchase and federal funds
purchased 18,730 26,477 23,922
Federal Home Loan Bank term notes 120,000 95,000 20,000
Federal Home Loan Bank line of credit
borrowing 85,900 185,847 128,600
Subordinated debentures 25,774 25,774 25,774
Securities purchased, not yet settled - - 2,284
Interest payable and other liabilities 13,576 11,943 11,854
-------------------------------------
Total liabilities 2,136,697 2,146,886 1,934,315
-------------------------------------
Stockholders' equity:
Common stock and additional paid-in
capital - common stock 713,491 712,334 710,241
Accumulated deficit (379,053) (382,147) (393,193)
Accumulated other comprehensive loss (4,307) (4,805) (2,466)
Treasury stock (104,612) (103,743) (103,445)
-------------------------------------
Total stockholders' equity 225,519 221,639 211,137
-------------------------------------
Total liabilities and
stockholders' equity $2,362,216 $ 2,368,525 $2,145,452
=====================================
GUARANTY BANCORP AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
Three Months Ended March 31,
------------------------------
2016 2015
------------------------------
(In thousands, except share
and per share data)
Interest income:
Loans, including costs and fees $ 18,854 $ 16,806
Investment securities:
Taxable 1,960 2,123
Tax-exempt 731 702
Dividends 311 222
Federal funds sold and other 4 1
------------------------------
Total interest income 21,860 19,854
------------------------------
Interest expense:
Deposits 1,007 668
Securities sold under agreement to
repurchase and federal funds purchased 10 11
Borrowings 623 199
Subordinated debentures 225 199
------------------------------
Total interest expense 1,865 1,077
------------------------------
Net interest income 19,995 18,777
Provision (credit) for loan losses 16 (23)
------------------------------
Net interest income, after provision for
loan losses 19,979 18,800
Noninterest income:
Deposit service and other fees 2,169 2,035
Investment management and trust 1,280 1,334
Increase in cash surrender value of life
insurance 448 408
Gain on sale of securities 45 -
Gain on sale of SBA loans 154 280
Other 82 58
------------------------------
Total noninterest income 4,178 4,115
Noninterest expense:
Salaries and employee benefits 8,788 8,604
Occupancy expense 1,375 1,697
Furniture and equipment 818 730
Amortization of intangible assets 240 495
Other real estate owned, net 2 41
Insurance and assessments 613 565
Professional fees 857 829
Other general and administrative 3,099 2,309
------------------------------
Total noninterest expense 15,792 15,270
------------------------------
Income before income taxes 8,365 7,645
Income tax expense 2,830 2,561
------------------------------
Net income $ 5,535 $ 5,084
==============================
Earnings per common share-basic: $ 0.26 $ 0.24
Earnings per common share-diluted: 0.26 0.24
Dividend declared per common share: $ 0.12 $ 0.10
Weighted average common shares outstanding-
basic: 21,184,892 21,037,325
Weighted average common shares outstanding-
diluted: 21,375,330 21,165,433
GUARANTY BANCORP AND SUBSIDIARIES
Unaudited Consolidated Average Balance Sheets
QTD Average
------------------------------------
March 31, December 31, March 31,
2016 2015 2015
------------------------------------
(In thousands)
Assets
Interest earning assets
Loans, net of deferred costs and fees $ 1,818,001 $ 1,769,010 $ 1,529,619
Securities 413,434 429,971 448,764
Other earning assets 2,812 2,115 2,334
------------------------------------
Average earning assets 2,234,247 2,201,096 1,980,717
Other assets 124,933 126,128 128,049
------------------------------------
Total average assets $ 2,359,180 $ 2,327,224 $ 2,108,766
====================================
Liabilities and Stockholders' Equity
Average liabilities:
Average deposits:
Noninterest-bearing deposits $ 611,736 $ 648,903 $ 647,184
Interest-bearing deposits 1,207,001 1,194,964 1,045,330
------------------------------------
Average deposits 1,818,737 1,843,867 1,692,514
Other interest-bearing liabilities 303,728 246,959 192,618
Other liabilities 12,536 14,883 13,524
------------------------------------
Total average liabilities 2,135,001 2,105,709 1,898,656
Average stockholders' equity 224,179 221,515 210,110
------------------------------------
Total average liabilities and
stockholders' equity $ 2,359,180 $ 2,327,224 $ 2,108,766
====================================
Contacts:
Paul W. Taylor
President and Chief Executive Officer
Guaranty Bancorp
1331 Seventeenth Street, Suite 200
Denver, CO 80202
(303) 293-5563
Christopher G. Treece
E.V.P., Chief Financial Officer and Secretary
Guaranty Bancorp
1331 Seventeenth Street, Suite 200
Denver, CO 80202
(303) 675-1194
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