This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

10 Community Bank Takeover Targets

10. Guaranty Bancorp

Company Profile

Shares of Guaranty Bancorp (GBNK) of Denver, Colo. closed at $1.53 Monday, returning 20% over the previous year.

The company is one of three community bank targets named by FBR analyst Brett Scheiner, who cited credit problems and said that Guaranty Bancorp's market footprint in Denver could be attractive to buyers.

Income Statement

The company hasn't said when it will announce its fourth-quarter results and didn't return a call requesting comment. For the third quarter, Guaranty Bancorp reported a net loss applicable to common stockholders of $5.4 million, or 11 cents a share, improving from a loss of $5.7 million, or 11 cents a share, the previous quarter and $16.9 million, or 33 cents a share a year earlier.

The provision for loan losses was $2.5 million, declining from $8.4 million the previous quarter and $20 million a year earlier, however, the linked-quarter improvement was more than offset by third-quarter foreclosure expenses totaling $7.8 million. Scheiner said the third quarter appeared "to represent a setback in credit quality." Net charge-offs - loan losses less recoveries - during the quarter totaled $7.5 million.

Guaranty Bancorp's third-quarter net interest margin improved to 3.53% from 3.14% a year earlier.

Balance Sheet

Total assets were $1.9 billion as of September 30 and nonperforming assets - including nonaccrual loans and repossessed assets - totaled $116 million, or 6.00% of total assets, compared to 4.82% in June and 5.51% a year earlier.

The annualized ratio of net charge-offs for the third quarter was 2.19% and loan loss reserves covered 3.25% of total loans as of September 30.

Scheiner said his firm believed that "Guaranty's robust capital base (tangible equity to assets of 8.88%) will be more than sufficient to absorb any future losses associated with it s loan portfolio.

Stock Ratios

Scheiner estimated in October that the company would lose 6 cents per common share for all of 2011. There are no earnings estimates available for 2012. The shares trade for 0.7 times tangible book value, according to SNL Financial.

Analyst Ratings

Scheiner has a "market perform" or neutral rating on the shares.

2 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
UCBI $18.51 0.00%
BXS $22.67 0.00%
FMBI $17.01 0.00%
FCNCA $253.86 0.00%
MBFI $30.50 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs