DENVER, CO -- (Marketwired) -- 07/17/13 -- Guaranty Bancorp (NASDAQ: GBNK)
•Net income growth of $1.5 million from prior linked quarter, or 68.0% •Year-to-date loan growth of $81.8 million, or 14.2% annualized •Significantly improved tax-equivalent efficiency ratio to 65.6% from 73.4% in the prior linked quarter •Favorable decline in nonperforming assets of 35.3% during the second quarter •Paid first dividend of 2.5 cents per share in May 2013
Guaranty Bancorp (NASDAQ: GBNK), a community bank holding company based in Colorado, today announced second quarter 2013 net income of $3.8 million, or $0.18 earnings per basic and diluted common share. Net income for the same quarter in 2012 was $6.2 million, or $0.30 earnings per basic and diluted common share (1). The second quarter 2012 net income was impacted by two significant items -- a $5.7 million reversal of expense related to the remaining deferred tax valuation allowance, partially offset by a $2.8 million impairment on bank facilities. The Company's pre-tax operating earnings (2) of $5.3 million in the second quarter 2013 improved by $1.7 million compared to the same quarter in 2012.
The $1.7 million increase in pre-tax operating earnings in the second quarter 2013 as compared to the same quarter in the prior year was due mostly to a $0.4 million increase in net interest income due primarily to lower interest costs; $0.4 million of increased asset management fees resulting from the purchase of Private Capital Management ("PCM") in July 2012; $0.3 million in increased gain on sale of SBA loans and a net reduction in noninterest expense.
"The experienced team we have assembled is successfully executing on our business strategies by attracting new customers and expanding current relationships across our markets," said Paul W. Taylor, President and CEO. "In addition, our continued focus on driving noninterest income and managing our expenses resulted in a $1.5 million increase to our net income for the quarter. As the Colorado economy continues to improve, we are seeing greater business and consumer confidence as evidenced by elevated utilization of our outstanding lines of credit."
Mr. Taylor continued, "We grew loans by 14.2% for the first six months of 2013, annualized, while maintaining our overall net interest margin during the same period. Commercial loan growth continues to be strong with a 27.9% annualized increase for the first six months of 2013. Our nonperforming assets declined 35.3% to $26.0 million resulting in a decline in nonperforming assets as a percentage of total assets to 1.4% from 2.2% at the end of the prior quarter. Our tax-equivalent efficiency ratio improved to 65.6% from 73.4% during the second quarter due to the combination of our reduced credit costs; strong loan growth and significant increases in noninterest income."
For the six months ending June 30, 2013, pre-tax operating earnings increased $2.1 million to $9.4 million as compared to $7.3 million for the six months ending June 30, 2012. The increase in pre-tax operating earnings was mostly due to a $1.6 million improvement in noninterest income, due to a $1.0 million increase in investment advisory fees and increases in other service fee income, as well as a $0.4 million increase in net interest income. For the six months ending June 30, 2013, net income was $6.1 million, or $0.29 earnings per basic and diluted share compared to net income of $9.1 million, or $0.44 earnings per basic and diluted share for the same period in 2012. The net income for the first six months of 2012 included a $5.7 million reversal of the remaining deferred tax valuation allowance, partially offset by a $2.8 million impairment on bank facilities during the second quarter 2012.
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