Guaranty Bancorp reports first-quarter loss

DENVER – Guaranty Bancorp reported a first quarter net loss of $1.8
million, primarily due to additional funds set aside for loan losses and
higher expenses related to other real estate owned.

The bank holding company, which operates 11 Guaranty Bank and Trust
branches in Northern Colorado, had a net income of $400,000 in the first
quarter of 2009, but a $1.5 million increase in provision for loan
losses and a $2.7 million increase in noninterest expense largely
related to costs associated with properties taken through foreclosure or
to otherwise satisfy debt led the loss this year.

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“I continue to be encouraged by the improvement in our asset quality
trends,´ said President and CEO Dan Quinn. “First quarter charge-offs
were 44 percent lower than the fourth quarter 2009 charge-offs and 60
percent lower than the first quarter 2009 charge-offs.”

Year-over-year, the bank has reduced its loan portfolio by more than 18
percent. Other real estate owned more than doubled to $30.9 million and
nonaccruing loans increased from $57.7 million to $70.5 million. In
general, delinquent and nonperforming assets peaked for the bank in the
second quarter of 2009 and have since been on the decline.

In afternoon trading, Guaranty stock was up 1 cent to $1.81.