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Guaranty Bancorp Announces 2012 Annual and Fourth Quarter Financial Results

DENVER, CO -- (Marketwire) -- 01/28/13 -- Guaranty Bancorp (NASDAQ: GBNK)

  • Loan growth of $60.6 million, or 5.5% during 2012
  • Increase in pre-tax net income of $5.5 million, or 87.2%, as compared to 2011
  • Reduction in classified assets of $24.7 million, or 29.6%, during 2012, further reduced by an additional $10.9 million due to the sale of our largest classified asset in January 2013
  • Previously announced redemption of $15.0 million of our trust preferred securities scheduled for first quarter 2013 will reduce interest expense by $1.6 million annually

Guaranty Bancorp (NASDAQ: GBNK), a Colorado-based community bank holding company, today reported fourth quarter 2012 net income of $3.1 million, or $0.03 earnings per basic and diluted common share, compared to net income of $2.3 million, or $0.02 earnings per basic and diluted common share in the fourth quarter 2011.

"We could not be more pleased with our performance in 2012," said Paul W. Taylor, President and CEO. "We successfully executed on our business plans to grow loans, increase deposits, and improve our credit quality. Our 2012 loan growth was $60.6 million, or 5.5%, despite a $71.5 million reduction in our purchased loan participations. We also grew our core deposits by $153.6 million, or 13.8% during 2012, further enhancing our high liquidity level. Continued focus on improving our credit quality metrics resulted in a substantial reduction in our classified asset ratio to 25.2% at the end of 2012 as compared to 36.6% at the end of the previous year. On a proforma basis, our classified asset ratio at December 31, 2012 improved to 20.5% after consideration of the sale of our largest classified asset on January 28, 2013."

Taylor continued, "Private Capital Management, the Colorado based investment management firm we acquired in July of 2012, also delivered outstanding results in just five short months. Assets under management grew by $14.5 million, or 8.7%, since the close of the acquisition. Additionally, the firm contributed $0.5 million to noninterest income in 2012. These accomplishments, in addition to a continued focus on enhancing profitability, make Guaranty Bancorp well positioned for further growth in 2013."

The $0.8 million improvement in net income in the fourth quarter 2012 compared to the same quarter in 2011 was primarily due to a $2.3 million increase in pre-tax income, offset by a $1.5 million increase in tax expense. The improvement in pre-tax income was primarily due to a $4.5 million decrease in provision for loan loss, due to improvements in credit quality and reduced charge-off levels, and an increase in noninterest income of $1.0 million, primarily due to increases in customer service fees and gains on sale of securities. These improvements were partially offset by a $3.1 million increase in noninterest expense, primarily driven by a $3.0 million write-down on the Company's single largest other real estate owned ("OREO") property, which was subsequently sold in January 2013.

Earnings per basic and diluted common share improved to $0.14 for the year ended December 31, 2012 as compared to a loss per basic and diluted common share of $0.21 from the prior year. The prior year loss per common share calculation included a non-cash adjustment of approximately $19.8 million, or $0.30 per basic and diluted common share, related to three quarters of paid-in-kind preferred stock dividends and the mandatory accelerated conversion of the Company's Series A Convertible Preferred Stock into common stock in September 2011.

For the year ended December 31, 2012, net income improved by $8.7 million, or 137.1%, to $15.1 million compared to $6.4 million for the year ended December 31, 2011, primarily due to the lower level of provision for loan losses of $7.0 million, attributable to continued improvements in credit quality in 2012; the reversal of the remaining deferred tax asset valuation allowance, discussed below; and the reduction in interest expense of $5.3 million, mostly due to reductions in deposit rates and the early payoff of several Federal Home Loan Bank ("FHLB") borrowings in 2011. These improvements were partially offset by a reduction in interest income of $4.7 million, due to declines in average earning assets yields, an increase in noninterest expense of $1.6 million and a decrease in noninterest income of $0.4 million, primarily due to reductions in net gains on sales of securities. The increase in noninterest expense was due to the net increase in OREO expense of $2.8 million, mostly due to the write-down discussed above, and the impairment related to the closure of two branches of $2.8 million, offset by a decrease in intangible amortization of $1.0 million and the FHLB prepayment penalty of $2.7 million recorded in 2011.

The Company had a deferred tax asset valuation allowance of $6.6 million at December 31, 2011. During the second quarter 2012, the remaining deferred tax asset valuation allowance of $5.7 million was reversed based on the Company's determination that it was more likely than not that the entire deferred tax asset would be realized. Subsequent to the reversal of the deferred tax asset valuation allowance, the Company resumed recording income tax expense.

Key Financial Measures
Income Statement

                                  Quarter Ended              Year Ended
                          ----------------------------- -------------------
                           December September  December  December  December
                           31, 2012  30, 2012  31, 2011  31, 2012  31, 2011
                          --------- --------- --------- --------- ---------
                           (Dollars in thousands, except per share amounts)
Net income                $   3,120 $   2,830 $   2,276 $  15,059 $   6,352
Net income (loss) to
 common stockholders      $   3,120 $   2,830 $   2,276 $  15,059 $ (13,434)
Earnings (loss) per common
 share                    $    0.03 $    0.02 $    0.02 $    0.14 $   (0.21)
Return on average assets       0.67%     0.63%     0.54%     0.86%     0.36%
Net interest margin            3.48%     3.46%     3.86%     3.67%     3.61%
Efficiency ratio (tax
 equivalent)                  88.16%    71.56%    74.84%    77.05%    77.75%

Balance Sheet

                           December   September    %      December     %
                           31, 2012   30, 2012  Change    31, 2011  Change
                          ---------- ---------- ------   ---------- ------
                          (Dollars in thousands, except per share amounts)
Cash and cash equivalents $  121,217 $  127,823   (5.2)% $  109,225   11.0%
Time deposits with banks      50,000     40,000   25.0%           -  100.0%
Total investments            458,927    436,386    5.2%     386,141   18.8%
Total loans, net of
 unearned discount         1,158,749  1,118,968    3.6%   1,098,140    5.5%
Allowance for loan losses    (25,142)   (28,597) (12.1)%    (34,661) (27.5)%
Total assets               1,886,938  1,834,978    2.8%   1,689,668   11.7%
Average earning assets,
 quarter-to-date           1,740,273  1,670,300    4.2%   1,575,193   10.5%
Total deposits             1,454,756  1,395,096    4.3%   1,313,786   10.7%
Book value per common
 share                          1.78       1.74    2.3%        1.62    9.9%
Tangible book value per
 common share                   1.69       1.65    2.4%        1.53   10.5%
Equity ratio - GAAP             9.97%     10.09%  (1.2)%      10.12%  (1.5)%
Tangible common equity
 ratio                          9.53%      9.59%  (0.6)%       9.59%  (0.6)%
Total risk-based capital
 ratio                         16.27%     16.46%  (1.2)%      16.33%  (0.4)%

Net Interest Income and Margin

                              Quarter Ended                Year Ended
                     -------------------------------  --------------------
                      December  September   December   December   December
                      31, 2012   30, 2012   31, 2011   31, 2012   31, 2011
                     ---------  ---------  ---------  ---------  ---------
                                     (Dollars in thousands)
Net interest income  $  15,217  $  14,511  $  15,325  $  60,411  $  59,894
Interest rate spread      3.21%      3.15%      3.54%      3.37%      3.25%
Net interest margin       3.48%      3.46%      3.86%      3.67%      3.61%
Net interest margin,
 fully tax equivalent     3.57%      3.55%      3.95%      3.77%      3.68%
Average cost of
 deposits, including
 noninterest bearing
 deposits                 0.19%      0.20%      0.26%      0.21%      0.49%


Net interest income increased $0.7 million from $14.5 million in the third quarter 2012 to $15.2 million in the fourth quarter 2012 and decreased $0.1 million as compared to $15.3 million for the fourth quarter 2011. Net interest margin increased two basis points from 3.46% in the third quarter 2012 to 3.48% in the fourth quarter 2012 and declined 38 basis points from 3.86% in the fourth quarter 2011.

The increase in net interest income of $0.7 million from the third quarter 2012 to the fourth quarter 2012 was due to an increase in interest income of $0.6 million and a decrease in interest expense of $0.1 million. Interest income increased primarily due to increases in average loan and investment balances of $33.5 million and $48.3 million, respectively. The decrease in interest expense was the result of a reduction in subordinated debentures interest due to the payment of compounding, deferred interest during the third quarter 2012.

The decline in net interest income of $0.1 million for the fourth quarter 2012 as compared to the same quarter in 2011 was due to a reduction in interest income of $0.4 million, partially offset by a reduction in interest expense of $0.3 million. The decline in interest income was mostly due to a decline in loan income of $0.2 million and a decline in investment income of $0.2 million. The decline in interest expense was due to a change in the deposit mix from higher-cost time and money market deposits to lower yielding demand accounts, reductions in average time deposit rates and a reduction in subordinated debentures interest due to the payment of compounding, deferred interest during the third quarter 2012.

On a year-to-date basis, the net interest margin improved six basis points from 3.61% in 2011 to 3.67% in 2012, as a result of an increase in net interest income of $0.5 million and a reduction in average earning assets of $13.8 million. The improvement in net interest income was primarily due to a decrease in interest expense of $5.3 million caused by reductions in both average balances and average rates on time certificates of deposit. The improvement in interest expense was partially offset by a decrease in interest income of $4.7 million, primarily due to declines in yields on loans and investments.

Noninterest Income

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


                                  Quarter Ended               Year Ended
                          ------------------------------ -------------------
                           December September  December   December  December
                           31, 2012  30, 2012  31, 2011   31, 2012  31, 2011
                          --------- --------- ---------  --------- ---------
                                            (In thousands)
Noninterest income:
 Customer service and
  other fees              $   2,640 $   2,616 $   2,320  $   9,909 $   9,413
 Gain on sale of
  securities                    817       746       283      2,527     3,703
 Gain on sale of SBA
  loans                           -       203         -        203         -
 Other                          309       250       197        952       829
                          --------- --------- ---------  --------- ---------
 Total noninterest income $   3,766 $   3,815 $   2,800  $  13,591 $  13,945
                          ========= ========= =========  ========= =========

Overall noninterest income remained relatively consistent in the fourth quarter 2012, as compared to prior quarter. Increases in gains on sale of securities and a gain on sale of bank facilities of $0.1 million each during the fourth quarter 2012 were offset by the gain on sale of Small Business Administration ("SBA") loans of $0.2 million during the third quarter 2012.

Noninterest income increased $1.0 million to $3.8 million in the fourth quarter 2012, as compared to $2.8 million in the fourth quarter 2011, primarily due to an increase in the gain on sale of securities of $0.5 million, an increase in customer service fees of $0.3 million related to investment management fees generated by Private Capital Management ("PCM"), acquired in July 2012, and net gains on sales of bank facilities of $0.1 million.

For the year ended December 31, 2012, noninterest income decreased $0.3 million to $13.6 million, as compared to $13.9 million during the prior year, primarily due to the decrease in the net gains on sales of securities of $1.2 million, partially offset by the gains on sales of SBA loans and bank facilities of $0.4 million, as well as the increase in customer service fees of $0.5 million, primarily investment management fees generated by PCM, as discussed in the preceding paragraph.

Noninterest Expense

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


                                  Quarter Ended               Year Ended
                          ------------------------------ -------------------
                           December September  December   December  December
                           31, 2012  30, 2012  31, 2011   31, 2012  31, 2011
                          --------- --------- ---------  --------- ---------
                                            (In thousands)
Noninterest expense:
 Salaries and employee
  benefits                $   6,832 $   6,466 $   6,716  $  26,769 $  26,059
 Occupancy expense            1,550     1,712     1,967      7,253     7,513
 Furniture and equipment        760       779       846      3,143     3,508
 Amortization of
  intangible assets             812       803     1,017      3,138     4,091
 Other real estate owned      3,209       348       240      4,370     1,559
 Insurance and assessment       677       771       845      3,137     4,053
 Professional fees            1,543     1,062       690      4,089     3,528
 Prepayment penalty on
  long term debt                  -         -         -          -     2,672
 Impairment of long-lived
  assets                          -         -         -      2,750         -
 Other general and
  administrative              2,539     2,253     2,528      9,465     9,504
                          --------- --------- ---------  --------- ---------
 Total noninterest
  expense                 $  17,922 $  14,194 $  14,849  $  64,114 $  62,487
                          ========= ========= =========  ========= =========

Noninterest expense increased $3.7 million to $17.9 million in the fourth quarter 2012 as compared to $14.2 million in the third quarter 2012. The increase was primarily due to an increase in OREO expenses driven by a $3.0 million write-down of a single property, which was subsequently sold in January 2013. In addition, professional fees increased $0.5 million, primarily due to legal expenses, and salary and benefits increased $0.4 million. These increases were partially of offset by a decline in occupancy expense of $0.2 million.

As compared to the fourth quarter 2011, noninterest expense increased $3.1 million primarily due to the OREO write-down discussed above. In addition, professional fees increased $0.9 million primarily related to legal expenses, which were partially offset by declines in occupancy expense of $0.4 million due to savings related to branch closures and declines in insurance and assessment expense of $0.2 million related to decreases in FDIC and other insurance premiums.

Noninterest expense increased $1.6 million to $64.1 million for the year ended December 31, 2012 as compared to $62.5 million for the same period in 2011. Increases in noninterest expense consisted of the increases in OREO expenses of $2.8 million, mostly due to the write-down discussed above, the impairment charge related to the closure of two branches of $2.8 million, an increase in professional fees of $0.6 million related to legal expenses, and an increase in salary and benefit expense of $0.7 million, primarily related to annual salary increases. These increases in noninterest expense were partially offset by the prepayment penalty on FHLB borrowings of $2.7 million incurred in September 2011; reductions in loan collection expenses of $1.0 million, as the result of improved credit quality; decrease in amortization of intangible assets of $1.0 million; reductions in insurance and assessments of $0.9 million, related to lower insurance premiums and FDIC assessments; and reductions in occupancy and furniture and equipment of $0.6 million due to savings related to branch closures in 2012.

Balance Sheet


                            December   September    %     December     %
                            31, 2012   30, 2012  Change   31, 2011  Change
                           ---------- ---------- ------  ---------- --------
                                        (Dollars in thousands)
Total assets               $1,886,938 $1,834,978    2.8% $1,689,668   11.7%
Average assets, quarter-to-
 date                       1,843,212  1,776,557    3.8%  1,682,168    9.6%
Total loans, net of
 unearned discount          1,158,749  1,118,968    3.6%  1,098,140    5.5%
Total deposits              1,454,756  1,395,096    4.3%  1,313,786   10.7%
Equity ratio - GAAP              9.97%     10.09%  (1.2)%     10.12%  (1.5)%
Tangible common equity
 ratio                           9.53%      9.59%  (0.6)%      9.59%  (0.6)%

At December 31, 2012, the Company had total assets of $1.9 billion, which represented a $52.0 million increase as compared to September 30, 2012 and a $197.3 million increase as compared to December 31, 2011. The increase in assets from September 30, 2012 consisted primarily of an increase in loans, net of unearned discount, of $39.8 million and an increase in investments of $22.5 million, partially offset by a decline in other assets of $11.2 million related to securities sold not yet settled. As compared to December 31, 2011, the increase in total assets was primarily due to an increase in investments of $72.8 million, an increase in loans, net of unearned discount, of $60.6 million, an increase in time deposits with banks of $50.0 million, and an increase in cash and cash equivalents of $12.0 million, partially offset by a decrease in OREO of $9.5 million. In addition, the allowance for loan losses decreased by $9.5 million.

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


                                          December    September   December
                                          31, 2012    30, 2012    31, 2011
                                         ----------  ----------  ----------
                                                   (In thousands)
Loans on real estate:
  Residential and Commercial             $  737,537  $  725,498  $  712,368
  Construction                               72,842      53,172      44,087
  Equity lines of credit                     45,308      44,131      44,601
Commercial loans                            237,199     226,205     223,479
Agricultural loans                            9,417      10,634      11,527
Installment loans to individuals             17,787      19,481      22,937
SBA                                          37,207      39,043      37,876
Other                                         3,043       2,521       3,092
                                         ----------  ----------  ----------
Gross loans                               1,160,340   1,120,685   1,099,967
Unearned discount                            (1,591)     (1,717)     (1,827)
                                         ----------  ----------  ----------
Loans, net of unearned discount          $1,158,749  $1,118,968  $1,098,140
                                         ==========  ==========  ==========

For the year ending December 31, 2012, loans, net of unearned discount, grew $60.6 million, despite a $71.5 million reduction in our purchased loan participations. The increase in loans is due to a $28.8 million increase in construction loans, a $25.2 million increase in residential and commercial real estate and a $13.7 million increase in commercial loans. These increases were partially offset by declines in consumer loans of $5.2 million and agricultural loans of $2.1 million. The growth in construction loans was primarily due to construction of multi-tenant retail and long-term care facilities with full lease commitments. Residential and commercial real estate growth was primarily due to commercial real estate loans for multi-tenant retail or industrial-flex office buildings that are either owner-occupied or substantially leased. Excluding reductions in our energy portfolio of $30.7 million, our commercial loans grew $45.1 million during 2012, or 27.6%. At December 31, 2012, the overall loan portfolio included 29.9% owner-occupied properties; 18.2% retail and industrial properties; 10.7% office properties; 8.9% other commercial real estate properties; and 5.4% multi-family properties. The Bank has capacity to extend additional credit on residential and commercial real estate loans pursuant to the Bank's concentration ratios discussed below.

Since December 31, 2011, the ratio of construction, land and land development loans to capital increased by five percentage points to 57% at December 31, 2012. During the same period, the ratio of commercial real estate loans to capital increased by 24 percentage points to 278%. These concentration ratios remain below the regulatory commercial real estate concentration guidelines of 100% for land and construction loans and 300% for all investor real estate loans.

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


                                           December   September    December
                                           31, 2012    30, 2012    31, 2011
                                         ----------- ----------- -----------
                                                    (In thousands)
Noninterest-bearing deposits             $   564,215 $   514,912 $   450,451
Interest-bearing demand and NOW              285,679     286,888     289,987
Money market                                 312,724     290,520     277,997
Savings                                      100,704      99,654      91,260
Time                                         191,434     203,122     204,091
                                         ----------- ----------- -----------
Total deposits                           $ 1,454,756 $ 1,395,096 $ 1,313,786
                                         =========== =========== ===========

Non-maturing deposits increased $71.3 million, or 6.0%, in the fourth quarter 2012 as compared to the third quarter 2012 and $153.6 million, or 13.8%, as compared to fourth quarter 2011. The growth in non-maturing deposits in 2012 included approximately $50.0 million in balances from five customers. We expect these funds will be withdrawn during the first and second quarters of 2013. Time deposits decreased $11.7 million as of December 31, 2012 as compared to September 30, 2012 and $12.7 million as compared to December 31, 2011. At December 31, 2012, noninterest-bearing deposits as a percentage of total deposits increased to 38.8% as compared to 36.9% at September 30, 2012 and 34.3% at December 31, 2011.

Securities sold under agreements to repurchase decreased $16.7 million from September 30, 2012 and increased $50.4 million from December 31, 2011 to $67.0 million at December 31, 2012. The increase from prior year was primarily related to a single depositor whose balance is expected to be re-deployed into the depositor's operations during the first quarter in 2013.

Total borrowings were $110.2 million at December 31, 2012, September 30, 2012 and December 31, 2011. The entire balance of borrowings at each balance sheet date consisted of term notes with the FHLB.

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
                                                                Requirement
                         Ratio at     Ratio at      Minimum     for "Well
                       December 31, December 31,    Capital    Capitalized"
                           2012         2011      Requirement   Institution
                       ------------ ------------ ------------ -------------

Total Risk-Based
 Capital Ratio:
 Consolidated                 16.27%       16.33%        8.00%          N/A
 Guaranty Bank and
  Trust Company               15.52%       15.59%        8.00%        10.00%
Tier 1 Risk-Based
 Capital Ratio:
 Consolidated                 15.02%       15.06%        4.00%          N/A
 Guaranty Bank and
  Trust Company               14.26%       14.32%        4.00%         6.00%
Leverage Ratio:
 Consolidated                 11.93%       12.12%        4.00%          N/A
 Guaranty Bank and
  Trust Company               11.35%       11.53%        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 December 31, 2012, approximately $7.0 million of the Bank's allowance for loan losses was disallowed from being included in total risk-based capital under the regulatory capital rules, or approximately 0.48% of the Company's consolidated risk-weighted assets.

As previously announced, the Company has submitted redemption notices to the trustee with respect to all of its $10.0 million CenBank I 10.6% and $5.0 million CenBank II 10.2% trust preferred securities. The trust preferred securities will be redeemed at a price equal to 104.24% (CenBank I) and 104.08% (CenBank II) of the liquidation amount of $1,000 per trust preferred security, respectively, plus all accrued and unpaid distributions to the respective redemption dates. The redemption of the trust preferred securities will be funded by a dividend from the Bank. The Company expects to redeem these securities during the first quarter 2013. As a result of the redemption, our consolidated total risk-based capital ratio and our Tier 1 risk-based capital ratio will decline by approximately one percentage point and our leverage ratio will decline by approximately 0.8 percentage points. All three ratios will continue to remain well above the minimum capital requirements for holding companies and well capitalized requirements for banks.

Asset Quality

The following table presents select asset quality data as of the dates indicated:


                 December
                 31, 2012
                    Pro
                   Forma   December September    June      March   December
                    (1)    31, 2012  30, 2012  30, 2012  31, 2012  31, 2011
                 --------  --------  --------  --------  --------  --------
                                   (Dollars in thousands)

Nonaccrual loans
 and leases      $ 13,692  $ 13,692  $ 21,185  $ 21,291  $ 29,648  $ 26,801
Other
 nonperforming
 loans                224       224       543         -     1,301         6
                 --------  --------  --------  --------  --------  --------
Total
 nonperforming
 loans (NPLs)    $ 13,916  $ 13,916  $ 21,728  $ 21,291  $ 30,949  $ 26,807
Other real
 estate owned
 and foreclosed
 assets             8,730    19,580    23,532    24,640    28,072    29,027
                 --------  --------  --------  --------  --------  --------
Total
 nonperforming
 assets (NPAs)   $ 22,646  $ 33,496  $ 45,260  $ 45,931  $ 59,021  $ 55,834
                 ========  ========  ========  ========  ========  ========

Accruing loans
 past due 90
 days or more
 (2)             $    224  $    224  $    543  $      -  $  1,301  $      6
                 ========  ========  ========  ========  ========  ========
Accruing loans
 past due 30-89
 days (2)        $  4,270  $  4,270  $  7,678  $ 18,448  $ 10,798  $ 10,805
                 ========  ========  ========  ========  ========  ========
Allowance for
 loan losses     $ 25,142  $ 25,142  $ 28,597  $ 29,307  $ 30,075  $ 34,661
                 ========  ========  ========  ========  ========  ========
Selected ratios:
NPLs to loans,
 net of unearned
 discount            1.20%     1.20%     1.94%     1.92%     2.79%     2.44%
NPAs to total
 assets              1.20%     1.78%     2.47%     2.62%     3.44%     3.30%
Allowance for
 loan losses to
 NPAs              111.02%    75.06%    63.18%    63.81%    50.96%    62.08%
Allowance for
 loan losses to
 NPLs              180.67%   180.67%   131.61%   137.65%    97.17%   129.30%
Allowance for
 loan losses to
 loans               2.17%     2.17%     2.56%     2.64%     2.71%     3.16%
Loans 30-89 days
 past due to
 loans, net of
 unearned
 discount            0.37%     0.37%     0.69%     1.66%     0.97%     0.98%
Texas ratio (3)      9.72%    14.37%    19.49%    19.92%    25.93%    24.55%
Classified asset
 ratio (4)          20.50%    25.16%    32.10%    33.79%    35.64%    36.62%


 (1)  December 31, 2012 Pro Forma represents data subsequent to the sale of
       our largest OREO property in January 2013.
 (2)  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.
 (3)  Texas ratio defined as total NPAs divided by subsidiary bank only Tier
       1 Capital plus allowance for loan losses.
 (4)  Classified asset ratio defined as total classified assets to
       subsidiary bank only Tier 1 Capital plus allowance for loan losses.


The following tables summarize past due loans by class as of the dates indicated:


                                   90 days
                                  +Past Due    Non-
                      30-89 Days  and Still   Accrual  Total Past    Total
December 31, 2012      Past Due   Accruing     Loans       Due       Loans
                      ---------- ---------- ---------- ---------- ----------

                                          (In thousands)
Commercial and
 residential real
 estate               $      832 $      224 $    8,034 $    9,090 $  736,524
Construction loans             -          -          -          -     72,742
Commercial loans           2,671          -      3,005      5,676    236,874
Consumer loans               140          -      1,332      1,472     64,307
Other                        627          -      1,321      1,948     48,302
                      ---------- ---------- ---------- ---------- ----------
Total                 $    4,270 $      224 $   13,692 $   18,186 $1,158,749
                      ========== ========== ========== ========== ==========


                                   90 days
                                  +Past Due    Non-
                      30-89 Days  and Still   Accrual  Total Past    Total
September 30, 2012     Past Due   Accruing     Loans       Due       Loans
                      ---------- ---------- ---------- ---------- ----------

                                          (In thousands)
Commercial and
 residential real
 estate               $    6,280 $      543 $   15,056 $   21,879 $  724,388
Construction loans             -          -          -          -     53,091
Commercial loans             753          -      3,217      3,970    225,858
Consumer loans               612          -      1,541      2,153     63,749
Other                         33          -      1,371      1,404     51,882
                      ---------- ---------- ---------- ---------- ----------
Total                 $    7,678 $      543 $   21,185 $   29,406 $1,118,968
                      ========== ========== ========== ========== ==========

During the fourth quarter 2012, nonaccrual loans declined $7.5 million as compared to third quarter 2012, primarily due to the payoff of the largest single nonaccrual loan. In addition, classified loans declined $11.7 million and loans classified as special mention and watch loans declined by $14.5 million. OREO decreased by $4.0 million during the fourth quarter 2012 as compared to the third quarter 2012, primarily driven by the $3.0 million write down on the Company's single largest OREO property, which was subsequently sold in January 2013.

At December 31, 2012, classified assets as a percentage of capital and allowance for loan losses were 25.2%, a favorable decline from 32.1% at September 30, 2012 and 36.6% at December 31, 2011.

Net charge-offs in the fourth quarter 2012 were negligible as compared to $0.7 million in the third quarter 2012 and $2.2 million in the fourth quarter 2011.

The general component of the allowance for loan losses decreased from $24.8 million at September 30, 2012 to $22.5 million at December 31, 2012. The general component represented 1.9% of loans, net of unearned discount, at December 31, 2012 as compared to 2.2% of loans, net of unearned discount, at the end of the previous quarter. The coverage ratio, defined as allowance for loan losses divided by nonperforming loans, increased from 131.6% at September 30, 2012 to 180.7% at December 31, 2012.

The Company recorded a $3.5 million negative provision for loan losses in the fourth quarter 2012, as compared to no provision in the third quarter 2012 and $1.0 million in the fourth quarter 2011. The decrease in provision for loan losses over the last year reflects an overall improvement in asset quality and the declines in net historical charge-offs.

Shares Outstanding

As of December 31, 2012, the Company had 105,847,607 shares of common stock outstanding, consisting of 100,752,607 shares of voting common stock and 5,095,000 shares of non-voting common stock. At December 31, 2012, total common shares outstanding include 1,696,796 shares of unvested stock awards.

Non-GAAP Financial Measures

This press release includes non-GAAP financial measures related to tangible assets, including tangible book value and the tangible equity ratio, all of which exclude intangible assets.

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

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

                                   December 31, September 30,  December 31,
                                       2012          2012          2011
                                  ------------- ------------- -------------
                                   (Dollars in thousands, except per share
                                                   amounts)
Tangible Book Value per Common
 Share
  Total stockholders' equity      $     188,200 $     185,073 $     171,011
  Less: Intangible assets                (9,348)      (10,161)       (9,963)
                                  ------------- ------------- -------------
  Tangible common equity          $     178,852 $     174,912 $     161,048
                                  ============= ============= =============

  Number of common shares
   outstanding                      105,847,607   106,256,654   105,436,623

  Book value per common share     $        1.78 $        1.74 $        1.62
  Tangible book value per common
   share                          $        1.69 $        1.65 $        1.53


Tangible Common Equity Ratio
                                   December 31, September 30,  December 31,
                                       2012          2012          2011
                                  ------------- ------------- -------------
                                   (Dollars in thousands, except per share
                                                   amounts)

  Total stockholders' equity      $     188,200 $     185,073 $     171,011
  Less: Intangible assets                (9,348)      (10,161)       (9,963)
                                  ------------- ------------- -------------
  Tangible common equity          $     178,852 $     174,912 $     161,048
                                  ============= ============= =============

  Total assets                    $   1,886,938 $   1,834,978 $   1,689,668
  Less: Intangible assets                (9,348)      (10,161)       (9,963)
                                  ------------- ------------- -------------
  Tangible assets                 $   1,877,590 $   1,824,817 $   1,679,705
                                  ============= ============= =============

  Equity ratio - GAAP (total
   stockholders' equity / total
   assets)                                 9.97%        10.09%        10.12%
  Tangible common equity ratio
   (tangible common equity /
   tangible assets)                        9.53%         9.59%         9.59%


About Guaranty Bancorp

Guaranty Bancorp is a bank holding company that operates 28 branches in Colorado through a single bank, Guaranty Bank and Trust Company. The Bank provides banking and other financial services including commercial and industrial, real estate, construction, 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 and its subsidiary also provide wealth management services, including private banking, investment management and trust 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 Company's operations; 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 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; 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 terms of other 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

                                 December 31,  September 30,   December 31,
                                     2012           2012           2011
                                -------------  -------------  -------------
                                               (In thousands)
Assets
Cash and due from banks         $     121,217  $     127,823  $     109,225
Time deposits with banks               50,000         40,000              -


Securities available for sale,
 at fair value                        413,382        395,632        353,152
Securities held to maturity            31,283         26,286         18,424
Bank stocks, at cost                   14,262         14,468         14,565
                                -------------  -------------  -------------
    Total investments                 458,927        436,386        386,141
                                -------------  -------------  -------------



Loans, net of unearned discount     1,158,749      1,118,968      1,098,140
  Less allowance for loan
   losses                             (25,142)       (28,597)       (34,661)
                                -------------  -------------  -------------
    Net loans                       1,133,607      1,090,371      1,063,479
                                -------------  -------------  -------------

Premises and equipment, net            46,918         47,083         53,851
Other real estate owned and
 foreclosed assets, net                19,580         23,532         29,027
Other intangible assets, net            9,348         10,161          9,963
Securities sold, not yet
 settled                                5,878         15,628              -
Other assets                           41,463         43,994         37,982
                                -------------  -------------  -------------
    Total assets                $   1,886,938  $   1,834,978  $   1,689,668
                                =============  =============  =============

Liabilities and Stockholders'
 Equity
Liabilities:
  Deposits:
    Noninterest-bearing demand  $     564,215  $     514,912  $     450,451
    Interest-bearing demand and
     NOW                              285,679        286,888        289,987
    Money market                      312,724        290,520        277,997


    Savings                           100,704         99,654         91,260
    Time                              191,434        203,122        204,091
                                -------------  -------------  -------------
      Total deposits                1,454,756      1,395,096      1,313,786
                                -------------  -------------  -------------
Securities sold under
 agreements to repurchase and
 federal funds purchased               67,040         83,734         16,617
Borrowings                            110,163        110,166        110,177
Subordinated debentures                41,239         41,239         41,239
Securities purchased, not yet
 settled                               16,943         12,311         20,800
Interest payable and other
 liabilities                            8,597          7,359         16,038
                                -------------  -------------  -------------
Total liabilities                   1,698,738      1,649,905      1,518,657
                                -------------  -------------  -------------


Stockholders' equity:
  Common stock and additional
   paid-in capital-common stock       705,389        705,238        704,698
  Accumulated deficit                (417,957)      (421,077)      (433,016)
  Accumulated other
   comprehensive income                 3,165          3,277          1,683
  Treasury stock                     (102,397)      (102,365)      (102,354)
                                -------------  -------------  -------------
      Total stockholders'
       equity                         188,200        185,073        171,011
                                -------------  -------------  -------------
      Total liabilities and
       stockholders' equity     $   1,886,938  $   1,834,978  $   1,689,668
                                =============  =============  =============



                     GUARANTY BANCORP AND SUBSIDIARIES
              Unaudited Consolidated Statements of Operations

                      Quarter Ended December 31,   Year Ended December 31,
                      -------------------------- --------------------------
                          2012          2011         2012          2011
                      ------------  ------------ ------------  ------------
                        (Dollars in thousands, except share and per share
                                              data)
Interest income:
  Loans, including
   fees               $     14,303  $     14,552 $     57,326  $     59,985
  Investment
   securities:
    Taxable                  2,127         2,441        8,746        11,277
    Tax-exempt                 691           582        2,558         2,066
  Dividends                    156           158          631           653
  Federal funds sold
   and other                    99            71          304           332
                      ------------  ------------ ------------  ------------
    Total interest
     income                 17,376        17,804       69,565        74,313
                      ------------  ------------ ------------  ------------
Interest expense:
  Deposits                     693           878        2,878         6,746
  Securities sold
   under agreement to
   repurchase and
   federal funds
   purchased                    22            14           67            74
  Borrowings                   836           836        3,327         4,727
  Subordinated
   debentures                  608           751        2,882         2,872
                      ------------  ------------ ------------  ------------
    Total interest
     expense                 2,159         2,479        9,154        14,419
                      ------------  ------------ ------------  ------------
    Net interest
     income                 15,217        15,325       60,411        59,894
Provision (credit)
 for loan losses            (3,500)        1,000       (2,000)        5,000
                      ------------  ------------ ------------  ------------
    Net interest
     income, after
     provision for
     loan losses            18,717        14,325       62,411        54,894
Noninterest income:
  Customer service
   and other fees            2,640         2,320        9,909         9,413
  Gain on sale of
   securities                  817           283        2,527         3,703
  Gain on sale of SBA
   loans                         -             -          203             -
  Other                        309           197          952           829
                      ------------  ------------ ------------  ------------
    Total noninterest
     income                  3,766         2,800       13,591        13,945
Noninterest expense:
  Salaries and
   employee benefits         6,832         6,716       26,769        26,059
  Occupancy expense          1,550         1,967        7,253         7,513
  Furniture and
   equipment                   760           846        3,143         3,508
  Amortization of
   intangible assets           812         1,017        3,138         4,091
  Other real estate
   owned, net                3,209           240        4,370         1,559
  Insurance and
   assessments                 677           845        3,137         4,053
  Professional fees          1,543           690        4,089         3,528
  Prepayment penalty
   on long term debt             -             -            -         2,672
  Impairment of long-
   lived assets                  -             -        2,750             -
  Other general and
   administrative            2,539         2,528        9,465         9,504
                      ------------  ------------ ------------  ------------
    Total noninterest
     expense                17,922        14,849       64,114        62,487
                      ------------  ------------ ------------  ------------
    Income before
     income taxes            4,561         2,276       11,888         6,352
Income tax expense
 (benefit)                   1,441             -       (3,171)            -
                      ------------  ------------ ------------  ------------
    Net Income        $      3,120  $      2,276 $     15,059  $      6,352
                      ============  ============ ============  ============

Net income (loss)
 applicable to common
 stockholders         $      3,120  $      2,276 $     15,059  $    (13,454)
                      ============  ============ ============  ============

Earnings (loss) per
 common share-basic:  $       0.03  $       0.02 $       0.14  $      (0.21)
Earnings (loss) per
 common share-
 diluted:                     0.03          0.02         0.14         (0.21)

Weighted average
 common shares
 outstanding-basic     103,988,407   103,840,990  103,934,009    64,941,731
Weighted average
 common shares
 outstanding-diluted   104,337,595   104,060,096  104,391,256    64,941,731



                      GUARANTY BANCORP AND SUBSIDIARIES
                Unaudited Consolidated Average Balance Sheets

                                 QTD Average                YTD Average
                       December   September  December   December   December
                       31, 2012   30, 2012   31, 2011   31, 2012   31, 2011
                      ---------- ---------- ---------- ---------- ----------
                                          (In thousands)
Assets
Interest earning
 assets
  Loans, net of
   unearned discount  $1,129,893 $1,096,395 $1,085,975 $1,110,267 $1,123,619
  Securities             451,342    403,053    364,833    405,240    394,456
  Other earning
   assets                159,038    170,852    124,385    129,391    140,608
                      ---------- ---------- ---------- ---------- ----------
Average earning
 assets                1,740,273  1,670,300  1,575,193  1,644,898  1,658,683
Other assets             102,939    106,257    106,975    104,217    110,249
                      ---------- ---------- ---------- ---------- ----------

Total average assets  $1,843,212 $1,776,557 $1,682,168 $1,749,115 $1,768,932
                      ========== ========== ========== ========== ==========

Liabilities and
 Stockholders' Equity
Average liabilities:
Average deposits:
  Noninterest-bearing
   deposits           $  521,000 $  515,157 $  459,031 $  496,940 $  425,763
  Interest-bearing
   deposits              895,729    861,685    869,758    867,259    953,727
                      ---------- ---------- ---------- ---------- ----------
  Average deposits     1,416,729  1,376,842  1,328,789  1,364,199  1,379,490
Other interest-
 bearing liabilities     232,004    208,643    173,848    197,633    215,093
Other liabilities          8,736      8,739      9,691      7,983      8,548
                      ---------- ---------- ---------- ---------- ----------
Total average
 liabilities           1,657,469  1,594,224  1,512,328  1,569,815  1,603,131
Average stockholders'
 equity                  185,743    182,333    169,840    179,300    165,801
                      ---------- ---------- ---------- ---------- ----------
Total average
 liabilities and
 stockholders' equity $1,843,212 $1,776,557 $1,682,168 $1,749,115 $1,768,932
                      ========== ========== ========== ========== ==========



                             GUARANTY BANCORP
                     Unaudited Credit Quality Measures

                                       Quarter Ended
                -----------------------------------------------------------
                 December     September   June 30,    March 31,   December
                 31, 2012     30, 2012      2012        2012      31, 2011
                ----------   ----------  ----------  ----------  ----------
                                   (Dollars in thousands)
Nonaccrual
 loans and
 leases         $   13,692   $   21,185  $   21,291  $   29,648  $   26,801
Other
 nonperforming
 loans                 224          543           -       1,301           6
                ----------   ----------  ----------  ----------  ----------
  Total
   nonperformin
   g loans      $   13,916   $   21,728  $   21,291  $   30,949  $   26,807
                ----------   ----------  ----------  ----------  ----------
Other real
 estate owned
 and foreclosed
 assets             19,580       23,532      24,640      28,072      29,027
                ----------   ----------  ----------  ----------  ----------
  Total
   nonperformin
   g assets     $   33,496   $   45,260  $   45,931  $   59,021  $   55,834
                ==========   ==========  ==========  ==========  ==========

Total
 classified
 assets         $   58,635   $   74,514  $   77,910  $   81,130  $   83,317
                ==========   ==========  ==========  ==========  ==========

Nonperforming
 loans          $   13,916   $   21,728  $   21,291  $   30,949  $   26,807
Other
 restructured
 loans still
 accruing            3,838            -           -           -           -
Allocated
 allowance for
 loan losses         (2654)      (3,774)     (1,859)     (2,572)     (3,490)
                ----------   ----------  ----------  ----------  ----------
  Net
   investment
   in impaired
   loans        $   15,100   $   17,954  $   19,432  $   28,377  $   23,317
                ==========   ==========  ==========  ==========  ==========

Accruing loans
 past due 90
 days or more   $      224   $      543  $        -  $    1,301  $        6
                ==========   ==========  ==========  ==========  ==========

Accruing loans
 past due 30-89
 days           $    4,270   $    7,678  $   18,448  $   10,798  $   10,805
                ==========   ==========  ==========  ==========  ==========

Charged-off
 loans          $    1,199   $    1,067  $    2,062  $    6,371  $    2,603
Recoveries          (1,244)        (357)       (794)       (785)       (412)
                ----------   ----------  ----------  ----------  ----------
  Net charge-
   offs         $      (45)  $      710  $    1,268  $    5,586  $    2,191
                ==========   ==========  ==========  ==========  ==========

Provision for
 loan losses    $   (3,500)  $        -  $      500  $    1,000  $    1,000
                ==========   ==========  ==========  ==========  ==========

Allowance for
 loan losses    $   25,142   $   28,597  $   29,307  $   30,075  $   34,661
                ==========   ==========  ==========  ==========  ==========

Allowance for
 loan losses to
 loans, net of
 unearned
 discount             2.17%        2.56%       2.64%       2.71%       3.16%
Allowance for
 loan losses to
 nonaccrual
 loans              183.63%      134.99%     137.65%     101.44%     129.33%
Allowance for
 loan losses to
 nonperforming
 assets              75.06%       63.18%      63.81%      50.96%      62.08%
Allowance for
 loan losses to
 nonperforming
 loans              180.67%      131.61%     137.65%      97.17%     129.30%
Nonperforming
 assets to
 loans, net of
 unearned
 discount, and
 other real
 estate owned         2.84%        3.96%       4.05%       5.19%       4.95%
Nonperforming
 assets to
 total assets         1.78%        2.47%       2.62%       3.44%       3.30%
Nonaccrual
 loans to
 loans, net of
 unearned
 discount             1.18%        1.89%       1.92%       2.67%       2.44%
Nonperforming
 loans to
 loans, net of
 unearned
 discount             1.20%        1.94%       1.92%       2.79%       2.44%
Annualized net
 charge-offs to
 average loans       (0.02)%       0.26%       0.46%       2.03%       0.80%


Contact:
Paul W. Taylor
President and Chief Executive Officer
Guaranty Bancorp
1331 Seventeenth Street, Suite 345
Denver, CO 80202
303/293-5563


Christopher G. Treece
E.V.P., Chief Financial Officer and Secretary
Guaranty Bancorp
1331 Seventeenth Street, Suite 345
Denver, CO 80202
303/675-1194


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