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.

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