Guaranty Bancorp Announces Second Quarter 2008 Earnings




 -- Net income of $2.0 million or $0.04 per basic and diluted share
 -- Stockholders' equity remains stable at 17.97% of total assets
    while tangible equity increases to 6.93% of tangible assets
 -- Major initiative undertaken to better align business expenses and
    revenue

DENVER, July 17, 2008 (PRIME NEWSWIRE) -- Guaranty Bancorp (Nasdaq:GBNK) today reported second quarter 2008 net income of $2.0 million, or 4 cents earnings per basic and diluted share, compared to a second quarter 2007 net loss of $6.8 million, or 13 cents loss per basic and diluted share. Excluding after-tax intangible asset amortization of $1.2 million, second quarter 2008 cash net income was $3.2 million, or 6 cents cash earnings per basic and diluted share, compared to second quarter 2007 cash net loss of $5.4 million, or 10 cents cash loss per basic and diluted share.

Second quarter 2008 net income increased by $8.8 million over the second quarter 2007 primarily due to the after-tax impact of a $11.9 million decrease in the provision for loan losses and a $7.9 million decrease in noninterest expense, partially offset by a $5.6 million decline in net interest income.

Dan Quinn, Guaranty Bancorp President and CEO, stated, "The second quarter showed further evidence of our efforts to strategically reposition the Company despite the challenges presented by the current economic environment. The loan portfolio was one important area of progress, where loans increased $29.9 million during the quarter despite the continuing reduction in our exposure to residential real estate."

"Another area of focus has been the reduction of operating expenses," Quinn continued. "Although operating expenses have reduced over the past two years, they remain higher than they should be in light of the current operating environment. As a consequence, we initiated a major effort in the second quarter to better align our expenses with the current size of our business. This effort will extend over the next several quarters and is expected to reduce operating expenses by approximately $6 million once fully implemented. As part of this effort, we decided to close two of our bank branches, each to take effect in the second half of 2008. In connection with these branch closures, we took a $1.3 million pre-tax charge in the second quarter. Without this charge, our second quarter net income would have been $2.8 million, or 6 cents per diluted share."

Key Financial Measures



                                Quarter Ended         Six Months Ended
                          --------------------------- -----------------
                          June 30, March 31, June 30, June 30, June 30,
                            2008     2008      2007     2008     2007
                          --------------------------- -----------------
 Earnings (loss) per
  share-basic & diluted   $  0.04  $  0.06  $ (0.13)  $  0.10  $ (0.03)
 Cash earnings (loss) per
  share-basic & diluted   $  0.06  $  0.09  $ (0.10)  $  0.15  $  0.02
 Return on average assets    0.35%    0.55%   (1.03%)    0.45%   (0.10%)
 Return on tangible
  average assets (cash)      0.62%    0.85%    0.98%     0.73%    0.12%
 Net interest margin         4.20%    4.42%    5.00%     4.31%    5.08%

The Company's net income for the first six months of 2008 improved by $6.7 million over the same period in 2007. For the year-to-date period ending June 30, 2008, net income was $5.3 million, or $0.10 earnings per basic and diluted share compared to a net loss of $1.4 million or $0.03 loss per basic and diluted share for the same period in 2007. The primary cause for the increase in net income over 2007 is an $11.8 million reduction in the provision for loan losses and a $9.9 million reduction in noninterest expense as discussed below, partially offset by a decrease in net interest income.

Cash net income for the first six months of 2008 was $7.6 million, or $0.15 per basic and diluted share excluding after-tax intangible asset amortization of $2.3 million. Cash net income for the first six months of 2007 was $1.3 million, or $0.02 per basic and diluted share excluding after-tax intangible amortization of $2.7 million.

Net Interest Income and Margin



                                  Quarter Ended       Six Months Ended
                          --------------------------- -----------------
                          June 30, March 31, June 30, June 30, June 30,
                            2008     2008      2007     2008     2007
                          --------------------------- -----------------
                                     (Dollars in thousands)

 Net interest income      $20,391  $21,650   $25,987  $42,041  $52,830
 Interest rate spread        3.50%    3.58%     3.98%    3.54%    4.07%
 Net interest margin         4.20%    4.42%     5.00%    4.31%    5.08%
 Net interest margin,
  fully tax equivalent       4.28%    4.53%     5.15%    4.41%    5.24%

Second quarter 2008 net interest income of $20.4 million decreased by $1.3 million from the first quarter 2008, and $5.6 million from the second quarter 2007. The Company's net interest margin of 4.20% for the second quarter 2008 reflected a decline of 22 basis points from the first quarter 2008 and a decline of 80 basis points from the second quarter 2007. The decline in net interest margin from the second quarter 2007 to second quarter 2008 is mostly attributable to the 325 basis point rate cuts in aggregate by the Federal Open Market Committee of the Federal Reserve Board during the past twelve months.

Interest income decreased by $11.5 million to $30.2 million in the second quarter 2008 from the second quarter 2007. This decrease consisted of a $9.2 million unfavorable rate variance due to lower rates, with the remainder of the decrease due to an overall decline in earnings assets. Approximately 66% of the Company's outstanding loan balances are variable rate loans and are generally tied to indexes such as prime, LIBOR or federal funds. The prime rate has decreased by 325 basis points from June 2007 to June 2008. As a result of the decline in rates, the average yield on loans for the Company decreased by 201 basis points from 8.33% for the quarter ended June 30, 2007 to 6.32% for the same period in 2008.

Interest expense decreased by $5.9 million, or 37.5%, to $9.8 million for the second quarter 2008 as compared to the second quarter 2007. The decrease in interest expense from the second quarter 2007 was primarily the result of a $3.9 million favorable rate variance with the remaining $1.9 million a result of a reduction in interest-bearing liabilities. The overall cost of funds declined by 132 basis points to 2.72% from the second quarter 2007 to the second quarter 2008. Average total interest-bearing deposits declined by $247.7 million from the second quarter 2007 to the second quarter 2008, with $151.6 million of the decrease in balances attributable to time deposits. This decline in time deposits is mostly due to the continuation of our strategic decision to reduce the balances of non-core time-deposits to mitigate the impact of margin compression.

For the six months ended June 30, 2008, the Company's net interest income declined by $10.8 million from the same period in 2007. This decline is due mostly to an $8.6 million unfavorable rate variance due to a 77 basis point decrease in net interest margin. The remainder of the decrease in net interest income is primarily due to lower earning assets.

Noninterest Income

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



                                  Quarter Ended       Six Months Ended
                          --------------------------- -----------------
                          June 30, March 31, June 30, June 30, June 30,
                            2008     2008      2007     2008     2007
                          --------------------------- -----------------
                                         (In thousands)
 Noninterest income:
  Customer service and
   other fees             $ 2,528  $ 2,276   $ 2,409  $ 4,804  $ 4,852
  Gain on sale of
   securities                  --      138        --      138       --
  Other                       604      101       168      705      292
                          --------------------------- -----------------
  Total noninterest
   income                 $ 3,132  $ 2,515   $ 2,577  $ 5,647  $ 5,144
                          =========================== =================

Noninterest income for second quarter 2008 increased by $0.6 million from the first quarter 2008 and by $0.6 million from the second quarter 2007. The increase from the first quarter 2008 is mostly due to higher fee income, partially offset by the decrease in gain on sale of securities. The $0.6 million increase in the second quarter 2008 as compared to the same period in 2007 is primarily attributable to a $0.3 million increase in analysis fees due to a decrease in earnings credits on compensating balances.

For the six months ended June 30, 2008, noninterest income increased by $0.5 million, or 9.8%, from the same period in 2007. The increase is mostly attributable to higher fee income, gain on sale of securities and a reduction in losses from disposals of other real estate owned.

Noninterest Expense

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



                                  Quarter Ended       Six Months Ended
                          --------------------------- -----------------
                          June 30, March 31, June 30, June 30, June 30,
                            2008     2008      2007     2008     2007
                          --------------------------- -----------------
                                         (In thousands)
 Noninterest expense:
  Salaries and employee
   benefits               $ 9,184  $ 9,720   $10,724  $18,904  $21,698
  Occupancy expense         2,131    2,001     2,056    4,132    4,177
  Furniture and equipment   1,383    1,314     1,231    2,697    2,471
  Amortization of
   intangible assets        1,877    1,877     2,195    3,754    4,390
  Other general and
   administrative           5,122    3,798    11,416    8,920   15,568
                          --------------------------- -----------------
  Total noninterest
   expense                $19,697  $18,710   $27,622  $38,407  $48,304
                          =========================== =================

 Efficiency ratio
  (excluding amortization
  of intangibles)           75.76%   69.66%    89.02%   72.67%   75.75%

Noninterest expense for the second quarter 2008 increased by $1.0 million from the first quarter of 2008, and decreased by $7.9 million from the second quarter 2007. The increase in noninterest expense from the first quarter of 2008 is mostly attributable to $1.3 million of expenses related to the decision in the second quarter 2008 to close two branches and a $0.2 million increase in legal and other fees, partially offset by a $0.5 million reduction in salaries and employee benefits expense. The $7.9 million decrease in noninterest expense from the second quarter 2007 is mostly attributable to additional charges of a $6.5 million settlement of a lawsuit and $1.0 million related to the merger of the subsidiary banks recorded in the second quarter 2007. Further, salaries and employee benefits expense decreased by $1.5 million due mostly to lower base salaries as a result of a continued focus on reducing staff levels, as well as lower bonus and incentive expense. These decreases were partially offset by $1.3 million in expenses related to the decision in the second quarter 2008 to close two branches.

Noninterest expense for the six months ended June 30, 2008 decreased by $9.9 million, or 20.5%, over the same period in 2007. This decline in noninterest expense is mostly attributable to the $6.5 million charge for a settlement of a lawsuit recorded in the second quarter 2007, as well as a $1.0 million charge taken for the merger of the Company's subsidiary banks in 2007. Additionally, there was a $2.8 million decrease in salaries and employee benefits expense due primarily to a decline in staffing levels and lower lender incentive expense, a $0.8 million decrease in professional fees relating mostly to external and internal audit fees, $0.6 million decline in amortization costs on intangible assets and $0.2 million of other expense decreases. These expense reductions were partially offset by a $1.3 million charge related to the decision to close two branches recorded in the second quarter 2008 as well as $0.7 million in charges related to other real estate owned in 2008, mostly attributable to the write-down of a single property.

Balance Sheet



                       June 30,    March 31,    %     June 30,     %
                         2008        2008     Change    2007     Change
 -----------------------------------------------------------------------
                      (Dollars in thousands, except per share amounts)
 Total loans, net of
  unearned discount   $1,789,155  $1,759,297   1.7%  $1,893,440   (5.5)%
 Allowance for loan
  losses                 (26,506)    (26,048)  1.8%     (35,594) (25.5)%
 Total assets          2,358,559   2,345,079   0.6%   2,640,732  (10.7)%
 Average assets,
  quarter-to-date      2,350,421   2,376,539  (1.1)%  2,654,637  (11.5)%
 Total deposits        1,707,031   1,710,082  (0.2)%  1,938,412  (11.9)%
 Book value per share $     8.04  $     7.99   0.6%  $    10.36  (22.4)%
 Tangible book value
  per share           $     2.73  $     2.65   3.1%  $     2.51    8.8%
 Equity ratio - GAAP       17.97%      17.97%    0%       21.50% (16.4)%
 Tangible equity ratio      6.93%       6.77%  2.4%        6.22%  11.4%

At June 30, 2008, the Company had total assets of $2.4 billion as compared to $2.3 billion at March 31, 2008, and $2.6 billion at June 30, 2007. The $282.2 million decline in assets from June 30, 2007 is mostly due to a $142.2 million goodwill impairment charge recorded in the fourth quarter 2007, as well as a $104.3 million decrease in loans, net of unearned discount. Approximately $48 million of this $104.3 million decrease in loans is attributable to the sale of certain impaired and classified loans in October 2007. A significant portion of the remaining decrease in loans is due to the Company's strategy of reducing its concentration of residential construction and land development loans.

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



                         June 30,    March 31,   Dec. 31,    June 30,
                           2008        2008        2007        2007
                        -----------------------------------------------
                                       (In thousands)
 Loans on real estate:
  Residential and
   commercial
   mortgage             $  717,533  $  723,246  $  713,478  $  742,802
  Construction             232,522     238,926     235,236     321,982
  Equity lines of
   credit                   46,778      47,659      48,624      53,676
 Commercial loans          705,309     657,423     679,717     652,911
 Agricultural loans         29,442      35,003      39,506      47,891
 Lease financing               472         472       4,732       6,435
 Installment loans to
  individuals               39,611      38,151      40,835      45,214
 Overdrafts                    915       2,520       1,329       4,350
 SBA and other              20,241      19,213      21,592      22,044
                        -----------------------------------------------
                         1,792,823   1,762,613   1,785,049   1,897,305
 Unearned discount          (3,668)     (3,316)     (3,402)     (3,865)
                        -----------------------------------------------
 Loans, net of
  unearned discount     $1,789,155  $1,759,297  $1,781,647  $1,893,440
                        ===============================================

Of the $997 million of real estate loans at June 30, 2008, approximately $65 million were secured by for-sale residential real estate. Further, approximately $119 million of these real estate loans consisted of residential land and land development loans.

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



                        ----------------------------------------------
                         June 30,    March 31,   Dec. 31,    June 30,
                           2008        2008        2007        2007
                        ----------------------------------------------
                                         (In thousands)
 Noninterest bearing
  deposits              $  515,646  $  473,247  $  515,299  $  472,777
 Interest bearing demand   149,019     156,416     160,100     156,440
 Money market              524,592     582,013     572,056     641,849
 Savings                    71,474      71,617      71,944      77,508
 Time                      446,300     426,789     480,108     589,838
                        ----------------------------------------------

 Total deposits         $1,707,031  $1,710,082  $1,799,507  $1,938,412
                        ==============================================

Total deposits at June 30, 2008 remained relatively flat as compared to March 31, 2008, but declined by $92.5 million from December 31, 2007 and by $231.4 million from June 30, 2007. The primary cause for the actual ending deposit balance at June 30, 2008 being approximately $58.7 million greater than average deposits for the second quarter 2008 is the receipt of a short-term deposit from a single depositor of approximately $62 million on the last day of the quarter. The decreases from both December 31, 2007 and June 30, 2007 are mostly due to decreases in money market and time deposits. The decrease in time deposits is due to a strategic decision to mitigate the impact of margin compression, whereas the decline in money market deposits is due to increased competition for deposits in the falling rate environment. Average noninterest bearing deposits were $452.3 million, or 27.4% of total deposits, for the quarter ended June 30, 2008 as compared to $478.5 million, or 24.9% of total deposits, for the quarter ended June 30, 2007.

Overall borrowings were $147.1 million at June 30, 2008 as compared to $63.7 million at December 31, 2007 and $26.0 million at June 30, 2007. The increase is mostly attributable to a decision to further utilize FHLB term advances as an alternative funding source to higher-cost time deposits.

Regulatory Capital Measures are Above the Well-Capitalized Minimums

The Company remains more than well-capitalized for regulatory capital purposes at June 30, 2008. In addition to exceeding the requirements to be a well capitalized institution, the regulatory capital ratios improved from December 31, 2007 as follows:



                                                             Minimum
                                                           Requirement
                       Ratio at    Ratio at     Minimum     for "Well
                       June 30,  December 31,   Capital    Capitalized"
                         2008        2007     Requirement  Institution
                       ------------------------------------------------

 Total Risk-Based
  Capital Ratio          11.0%       10.9%        8.00%       10.00%
 Tier 1 Risk-Based
  Capital Ratio           9.8%        9.6%        4.00%        6.00%
 Leverage Ratio           9.5%        8.6%        4.00%        5.00%

Asset Quality

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



                      June 30,  March 31, Dec. 31,  Sept. 30, June 30,
                        2008      2008      2007      2007      2007
                      -------------------------------------------------
                                   (Dollars in thousands)

 Nonaccrual loans, not
  restructured        $ 29,742  $ 20,798  $ 19,309  $ 16,831  $ 35,515
 Accruing loans past
  due 90 days or more       98         1       527         9       122
                      -------------------------------------------------

 Total nonperforming
  loans (NPLs)          29,840    20,799    19,836    16,840    35,637
 Other real estate
  owned                  1,910     1,715     3,517     3,401     1,385
                      -------------------------------------------------
 Total nonperforming
  assets (NPAs)       $ 31,750  $ 22,514  $ 23,353  $ 20,241  $ 37,022
                      =================================================

 Accruing loans past
  due 30-89 days      $ 20,169  $ 42,680  $ 28,242  $ 29,559  $ 25,452
                      =================================================

 Allowance for loan
  losses              $ 26,506  $ 26,048  $ 25,711  $ 23,979  $ 35,594
                      =================================================

 Selected ratios:
 NPLs to loans, net of
  unearned discount       1.67%     1.18%     1.11%     0.93%     1.88%
 NPAs to total assets     1.35%     0.96%     0.98%     0.77%     1.40%
 Allowance for loan
  losses to NPAs         83.48%   115.70%   110.10%   118.47%    96.14%
 Allowance for loan
  losses to NPLs         88.83%   125.24%   129.62%   142.39%    99.88%
 Allowance for loan
  losses to loans, net
  of unearned discount    1.48%     1.48%     1.44%     1.32%     1.88%
 Loans past due 30-89
  days to loans, net
  of unearned discount    1.13%     2.43%     1.59%     1.62%     1.34%

Nonperforming assets increased by $9.2 million at June 30, 2008 as compared to March 31, 2008, and decreased by $5.3 million as compared to June 30, 2007. Approximately 82% of the increase from the prior quarter is due to the addition of one loan relationship to nonperforming asset status during the second quarter 2008. The decrease from June 2007 was mostly due to the sale of certain nonperforming and classified loans on October 31, 2007. At June 30, 2008, six loan relationships comprised approximately 67% of nonperforming loans. Of the $29.8 million of nonperforming loans at June 30, 2008, approximately fifty percent was secured by residential real estate including residential land and land development loans.

The Company took a second quarter 2008 provision for loan losses of $0.9 million, as compared to $0.9 million in the first quarter 2008 and $12.8 million in the second quarter 2007. The lower net charge-offs and level of impaired loans at June 30, 2008 and March 31, 2008, as compared to June 30, 2007 resulted in the lower provision for loan losses in the current quarter.

Net charge-offs in the second quarter 2008 were $0.4 million, as compared to $0.5 million in the first quarter 2008, and $4.7 million in the second quarter 2007. Impaired loans as of June 30, 2008 totaled $29.8 million, as compared to $20.8 million at the end of the first quarter of 2008, and $55.8 million at the end of the second quarter of 2007.

The allowance for loan losses to total loans outstanding was 1.48% at June 30, 2008, as compared to 1.48% at March 31, 2008 and 1.88% at June 30, 2007.

Stock Repurchase Programs

During the second quarter 2008, the Company did not repurchase any shares under its stock repurchase programs and only repurchased 13,558 shares related to the net settlement of vested, restricted stock awards at a cost of $70,000, or an average price of $5.13 per share. At June 30, 2008, the Company had 1,200,000 shares remaining under its stock repurchase program adopted in October 2007 (149,858 shares expired in May 2008 when the stock repurchase program adopted in May 2007 lapsed). The remaining shares may be acquired from time to time either in the open market or in privately negotiated transactions in accordance with applicable regulations of the Securities and Exchange Commission. However, the Company does not anticipate purchasing any of the remaining shares in the near future due to its focus and strategy to strengthen its capital position. As of June 30, 2008, the Company had 52,736,269 shares outstanding, including 1,689,608 shares of unvested stock awards, and 69,275 of shares to be issued at June 30, 2008 under its deferred compensation plan.

Non-GAAP Financial Measures

This press release includes non-GAAP financial measures related to the income statement, including cash net income, cash earnings per share and return on average tangible assets (cash), which exclude the after-tax impact of intangible asset amortization expense.

This press release also includes non-GAAP financial measures related to tangible assets, including return on average tangible assets (cash), tangible book value and tangible equity ratio. These items exclude average and actual intangible assets, respectively.

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

The following non-GAAP schedule reconciles cash net income and return on tangible net assets (cash) to their respective GAAP measure as of the dates indicated:



                      Quarter Ended                Six Months Ended
            ----------------------------------  ----------------------
             June 30,    March 31,   June 30,    June 30,    June 30,
               2008        2008        2007        2008        2007
            ----------------------------------  ----------------------
                      (In thousands, except per share data)
 GAAP net
  income
  (loss)    $    2,025  $    3,245  $   (6,794) $    5,270  $   (1,385)
  Add:
   Amorti-
    zation of
    intangible
    assets       1,877       1,877       2,195       3,754       4,390
  Less:
   Income
   tax
   effect         (713)       (713)       (834)     (1,427)     (1,669)
            ----------------------------------  ----------------------
 Cash net
  income
  (loss)    $    3,189  $    4,409  $   (5,433) $    7,597  $    1,336
            ==================================  ======================

 Weighted
  average
  shares -
  diluted   51,091,042  51,049,525  53,425,770  51,086,578  54,105,373

 Earnings
  (loss) per
  share -
  diluted   $     0.04  $     0.06  $    (0.13) $     0.10 $     (0.03)
  Add:
   Amorti-
    zation of
    intangible    0.02        0.03        0.03        0.05        0.05
    assets
   (after
   tax
   effect)
 Cash
  earnings
  (loss)
  per       ----------------------------------------------------------
  share     $     0.06  $     0.09  $    (0.10) $     0.15  $     0.02
            ==========================================================

 Return on
  tangible
  net assets
  (cash)

  Cash net
   income
   (loss)   $    3,189  $    4,409  $   (5,433) $    7,597  $    1,336
            ----------------------------------  ----------------------

  Average
   total
   assets   $2,350,421  $2,376,539  $2,654,637  $2,363,499  $2,670,986
  Less
   average
   intangible
   assets     (280,845)   (282,830)   (431,220)   (281,837)   (432,389)
            ----------------------------------  ----------------------
  Average
   tangible
   assets   $2,069,576  $2,093,709  $2,223,417  $2,081,662  $2,238,597
            ----------------------------------  ----------------------

  Return on
   average
   assets -
   GAAP net
   income
   (loss)
   divided
   by total
   average
   assets         0.35%       0.55%      -1.03%       0.45%      -0.10%
            ==================================  ======================


  Return on
   average
   tangible
   assets
   (cash) -
   cash net
   income
   divided by
   average
   tangible
   assets         0.62%       0.85%      -0.98%       0.73%       0.12%
            ==================================  ======================

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



                                   June 30,    March 31,     June 30,
                                     2008        2008          2007
                                 -------------------------------------
                                   (Dollars in thousands, except per
                                            share amounts)
 Tangible Book Value per Share
  Stockholders' equity           $   423,927  $   421,461  $   567,690
  Intangible assets                 (279,927)    (281,804)    (430,167)
                                 -------------------------------------
  Tangible equity                $   144,000  $   139,657  $   137,523
                                 =====================================

  Number of shares outstanding
   and to be issued               52,736,269   52,726,120   54,809,236
  Book value per share           $      8.04  $      7.99  $     10.36
  Tangible book value per share  $      2.73  $      2.65  $      2.51

 Tangible Equity Ratio

  Total assets                   $ 2,358,559  $ 2,345,079  $ 2,640,732

  Less:  Intangible assets          (279,927)    (281,804)    (430,167)
                                 -------------------------------------
  Tangible assets                $ 2,078,632  $ 2,063,275  $ 2,210,565
                                 =====================================

  Equity ratio - GAAP
   (stockholders' equity / total
   assets)                             17.97%       17.97%       21.50%

  Tangible equity ratio (tangible
   equity / tangible assets)            6.93%        6.77%        6.22%

About Guaranty Bancorp

Guaranty Bancorp is a bank holding company that operates 36 branches in Colorado through a single bank, Guaranty Bank and Trust Company. The bank provides banking and other financial services including real estate, construction, commercial and industrial, energy, consumer and agricultural loans throughout its targeted Colorado markets to consumers and small to medium-sized businesses, including the owners and employees of those businesses. The bank also provides trust services, including personal trust administration, estate settlement, investment management accounts and self-directed IRAs. More information about Guaranty Bancorp can be found at www.gbnk.com.

Forward-Looking Statements

Certain statements contained in this press release, including, without limitation, statements containing the words "believes", "anticipates", "intends", "expects", and words of similar import, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions in those areas in which the Company operates; demographic changes; competition; fluctuations in interest rates; continued ability to attract and employ qualified personnel; costs and uncertainties related to the outcome of pending litigation; changes in business strategy or development plans; changes that occur in the securities markets; changes in governmental legislation or regulation; changes in credit quality; the availability of capital to fund the expansion of the Company's business; economic, political and global changes arising from natural disasters; the war on terrorism; conflicts in the Middle East; and additional "Risk Factors" referenced in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, as supplemented from time to time. When relying on forward-looking statements to make decisions with respect to the Company, investors and others are cautioned to consider these and other risks and uncertainties. The Company can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. The forward-looking statements are made as of the date of this press release, and the Company does not intend, and assumes no obligation, to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.



                  GUARANTY BANCORP AND SUBSIDIARIES
                Unaudited Consolidated Balance Sheets

                                     June 30,    Dec. 31,    June 30,
                                       2008        2007        2007
                                    ----------------------------------
                                              (In thousands)
 Assets
 Cash and due from banks            $   44,175  $   51,611  $   48,255
 Federal funds sold                     11,672         745       4,200
                                    ----------------------------------
    Cash and cash equivalents           55,847      52,356      52,455
                                    ----------------------------------
 Securities available for sale, at
  fair value                           112,118     118,964     143,879
 Securities held to maturity            13,772      14,889      12,160
 Bank stocks, at cost                   32,713      32,464      32,176
                                    ----------------------------------
    Total investments                  158,603     166,317     188,215
                                    ----------------------------------

 Loans, net of unearned discount     1,789,155   1,781,647   1,893,440
  Less allowance for loan losses       (26,506)    (25,711)    (35,594)
                                    ----------------------------------
    Net loans                        1,762,649   1,755,936   1,857,846
                                    ----------------------------------
 Loans, held for sale                       --         492          --
 Premises and equipment, net            65,087      69,981      72,046
 Other real estate owned and
  foreclosed assets                      1,910       3,517       1,385
 Goodwill                              250,748     250,748     392,958
 Other intangible assets, net           29,179      32,933      37,209
 Other assets                           34,536      39,384      38,618
                                    ----------------------------------
    Total assets                    $2,358,559  $2,371,664  $2,640,732
                                    ==================================

 Liabilities and Stockholders' Equity
 Liabilities:
  Deposits:
   Noninterest-bearing demand       $  515,646  $  515,299  $  472,777
   Interest-bearing demand             673,611     732,156     798,289
   Savings                              71,474      71,944      77,508
   Time                                446,300     480,108     589,838
                                    ----------------------------------
    Total deposits                   1,707,031   1,799,507   1,938,412
                                    ----------------------------------
 Securities sold under agreements to
  repurchase and federal fund
  purchases                             21,442      23,617      37,391


 Borrowings                            147,117      63,715      26,030
 Subordinated debentures                41,239      41,239      41,239
 Interest payable and other
  liabilities                           17,803      24,932      29,970
                                    ----------------------------------
    Total liabilities                1,934,632   1,953,010   2,073,042
                                    ----------------------------------

 Stockholders' equity:
  Common stock                              65          64          64
  Additional paid-in capital           619,188     617,611     616,447
  Shares to be issued for deferred
   compensation obligations                613         573         562
  Accumulated deficit                  (89,997)    (95,196)     41,511
  Accumulated other comprehensive
   loss                                 (2,894)     (1,472)       (522)
  Treasury Stock                      (103,048)   (102,926)    (90,372)
                                    ----------------------------------
    Total stockholders' equity         423,927     418,654     567,690
                                    ----------------------------------
    Total liabilities and
     stockholders' equity           $2,358,559  $2,371,664  $2,640,732
                                    ==================================


                  GUARANTY BANCORP AND SUBSIDIARIES
             Unaudited Consolidated Statements of Income

                          Three Months Ended       Six Months Ended
                        ----------------------  ----------------------
                         June 30,    June 30,    June 30,    June 30,
                           2008        2007        2008        2007
                        ----------------------  ----------------------
                             (In thousands, except per share data)
 Interest income:
  Loans, including fees $   28,107  $   39,087  $   59,147  $   78,825
  Investment securities:
   Taxable                     779         608       1,463       1,229
   Tax-exempt                  877       1,336       1,770       2,748
  Dividends                    435         459         905         934
  Federal funds sold and
   other                        18         213         334         327
                        ----------------------  ----------------------
   Total interest income    30,216      41,703      63,619      84,063
                        ----------------------  ----------------------
 Interest expense:
  Deposits                   7,411      13,738      17,206      27,084
  Federal funds
   purchased and
   repurchase
   agreements                  145         448         282         749
  Borrowings                 1,417         592       2,446       1,530
  Subordinated
   debentures                  852         938       1,644       1,870
                        ----------------------  ----------------------
   Total interest
    expense                  9,825      15,716      21,578      31,233
                        ----------------------  ----------------------
   Net interest income      20,391      25,987      42,041      52,830
 Provision for loan
  losses                       900      12,766       1,775      13,615
                        ----------------------  ----------------------
   Net interest income,
    after provision for
    loan losses             19,491      13,221      40,266      39,215
 Noninterest income:
  Customer service and
   other fees                2,528       2,409       4,804       4,852
  Gain on sale of
   securities                   --          --         138          --
  Other                        604         168         705         292
                        ----------------------  ----------------------
   Total noninterest
    income                   3,132       2,577       5,647       5,144
 Noninterest expense:
  Salaries and employee
   benefits                  9,184      10,724      18,904      21,698
  Occupancy expense          2,131       2,056       4,132       4,177
  Furniture and
   equipment                 1,383       1,231       2,697       2,471
  Amortization of
   intangible assets         1,877       2,195       3,754       4,390
  Other general and
   administrative            5,122      11,416       8,920      15,568
                        ----------------------  ----------------------
   Total noninterest
    expense                 19,697      27,622      38,407      48,304
                        ----------------------  ----------------------
   Income before income
    taxes                    2,926     (11,824)      7,506      (3,945)
 Income tax expense            901      (5,030)      2,236      (2,560)
                        ----------------------  ----------------------
   Net income (loss)    $    2,025  $   (6,794) $    5,270  $   (1,385)
                        ======================  ======================

 Earnings (loss) per
  share-basic:          $     0.04  $    (0.13) $     0.10  $    (0.03)
 Earnings (loss) per
  share-diluted:              0.04       (0.13)       0.10       (0.03)

 Weighted average
  shares outstanding-
  basic                 51,004,472  53,425,770  50,996,350  54,105,373
 Weighted average shares
  outstanding-diluted   51,091,042  53,425,770  51,086,578  54,105,373


                  Guaranty Bancorp and Subsidiaries
            Unaudited Consolidated Average Balance Sheets

                           QTD Average           YTD Average
                -------------------------------- ---------------------
                 June 30,   March 31,  June 30,   June 30,   June 30,
                   2008       2008       2007       2008       2007
                -------------------------------- ---------------------
                                    (In thousands)
 Assets
 Interest
  earning assets
  Loans, net of
   unearned
   discount     $1,788,603 $1,767,582 $1,882,840 $1,778,098 $1,896,185
  Securities       162,293    159,777    190,819    161,035    193,910
  Other earning
   assets            2,738     41,796     11,282     22,267      7,638
                -------------------------------- ---------------------
 Average earning
  assets         1,953,634  1,969,155  2,084,941  1,961,400  2,097,733
 Other assets      396,787    407,384    569,696    402,099    573,253
                -------------------------------- ---------------------

 Total average
  assets        $2,350,421 $2,376,539 $2,654,637 $2,363,499 $2,670,986
                ================================ =====================

 Liabilities and
  Stockholders'
  Equity
 Average
  liabilities:
 Average
  deposits:
  Noninterest-
   bearing
   deposits     $  452,315 $  472,802 $  478,520 $  462,564 $  480,875
  Interest-
   bearing
   deposits      1,195,998  1,277,606  1,443,719  1,236,802  1,446,018
                -------------------------------- ---------------------
  Average
   deposits      1,648,313  1,750,408  1,922,239  1,699,366  1,926,893
 Other interest-
  bearing
  liabilities      258,557    180,633    118,147    219,595    125,431
 Other
  liabilities       18,802     22,958     32,603     20,893     33,578
                -------------------------------- ---------------------
 Total average
  liabilities    1,925,672  1,953,999  2,072,989  1,939,854  2,085,902
 Average
  stockholders'
  equity           424,749    422,540    581,648    423,645    585,084
                -------------------------------- ---------------------
 Total average
  liabilities
  and
  stockholders'
  equity        $2,350,421 $2,376,539 $2,654,637 $2,363,499 $2,670,986
                ================================ =====================


                          Guaranty Bancorp
                  Unaudited Credit Quality Measures

                                       Quarter Ended
                      ------------------------------------------------
                      June 30,  March 31, Dec. 31,  Sept. 30, June 30,
                        2008      2008      2007      2007      2007
                      ------------------------------------------------
                                  (Dollars in thousands)
 Nonaccrual loans and
  leases, not
  restructured        $ 29,742  $ 20,798  $ 19,309  $ 16,831  $ 35,515
 Accruing loans past
   due 90 days or more      98         1       527         9       122
 Other real estate
  owned                  1,910     1,715     3,517     3,401     1,385
                      ------------------------------------------------
  Total nonperforming
   assets             $ 31,750  $ 22,514  $ 23,353  $ 20,241  $ 37,022
                      ------------------------------------------------

 Nonperforming loans  $ 29,840  $ 20,799  $ 19,836  $ 16,840  $ 35,637
 Other impaired loans       --        --     3,492       510    20,208
                      ------------------------------------------------
 Total impaired loans   29,840    20,799    23,328    17,350    55,845
 Allocated allowance
  for loan losses       (6,295)   (5,368)   (4,283)   (4,028)  (14,113)
                      ------------------------------------------------
  Net investment in
   impaired loans     $ 23,545  $ 15,431  $ 19,045  $ 13,322  $ 41,732
                      ================================================

 Charged-off loans    $    673  $    743  $  1,729  $ 20,079  $  5,473
 Recoveries               (231)     (205)     (436)     (438)     (809)
                      ------------------------------------------------
  Net charge-offs     $    442  $    538  $  1,293  $ 19,641  $  4,664
                      ================================================

 Provision for loan
  loss                $    900  $    875  $  3,025  $  8,026  $ 12,766
                      ================================================

 Allowance for loan
  losses              $ 26,506  $ 26,048  $ 25,711  $ 23,979  $ 35,594
                      ================================================

 Allowance for loan
  losses to loans, net
  of unearned discount    1.48%     1.48%     1.44%     1.32%     1.88%
 Allowance for loan
  losses to nonaccrual
  loans                  89.12%   125.24%   133.16%   142.47%   100.22%
 Allowance for loan
  losses to
  nonperforming assets   83.48%   115.70%   110.10%   118.47%    96.14%
 Allowance for loan
  losses to
  nonperforming loans    88.83%   125.24%   129.62%   142.39%    99.88%

 Nonperforming assets
  to loans, net of
  unearned discount,
  and other real
  estate owned            1.77%     1.28%     1.31%     1.11%     1.96%
 Annualized net
  charge-offs to
  average loans           0.10%     0.12%     0.28%     4.16%     0.99%
 Nonaccrual loans to
  loans, net of
  unearned discount       1.66%     1.18%     1.08%     0.93%     1.88%


            

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