Guaranty Financial Corp · OTC:GFCJ

Guaranty Financial — Q4 2007 Earnings Presentation

14 slides from Guaranty Financial's earnings presentation, Feb 6, 2008

  1. Slide 1: Fourth Quarter and Year 2007 Financial Highlights

    Fourth Quarter and Year 2007 Financial Highlights February 6, 2008

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements This presentation contains "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements are identified by their use of terms and phrases such as "believe," "anticipate," "could," "estimate," "likely," "intend," "may," "pl

  3. Slide 3: Earnings Highlights

    ($ in millions, except per share data) 2004 2005 2006 2007 Net Interest Income before LLP $406 $396 $412 $391 (Provision) Credit for Credit Losses 12 (10) (1) (50) Net Interest Income After Provision 418 386 411 341 Non-Interest Income 267 180 168 157 Non-Interest Expense (534) (384) (388) (372) Inc

  4. Slide 4: Maintain Strong Credit and Risk Standards: Net Interest Margin

    Maintain Strong Credit and Risk Standards Net Interest Margin Despite volatility in interest rates, successfully maintained stable net interest margin 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Guaranty Net Interest Margin 0.0234 0.0251 0.0263 0.0275 0.0238 0.0237 0.0255 0.0258 0.0258 0.0259

  5. Slide 5: Balance Sheet Highlights

    ($ in billions, except per share data) 2004 2005 2006 2007 Total Assets $16.1 $17.7 $16.2 $16.8 Loans, net of allowance 9.6 9.8 9.6 9.9 Securities 4.7 6.2 5.4 5.5 Total Liabilities 15.2 16.7 15.2 15.7 Deposits 9.0 9.2 9.5 9.4 FHLB Borrowings 4.7 6.9 5.1 5.7 Stockholders' Equity 0.9 1.0 1.0 1.1 Book

  6. Slide 6: Diversified deposit base

    Diversified deposit base Total Deposits (Dec 31, 2007) Deposits MMDA Checking CDs 0.29 0.2 0.51 Total: $9.4 billion

  7. Slide 7: Loan Portfolio Dec. 31, 2007

    Loan Portfolio Dec. 31, 2007 Maintain diversified loan portfolio Overview $10 billion total Strong middle market focus Strong energy lending with focus on E&P Significant commercial real estate experience Lower risk single family mortgage portfolio Energy Lending Multifamily and Senior Housing Singl

  8. Slide 8: Commercial Loan Balances

    2004* 2005* 2006 2007 Single-Family Construction 1.303 1.665 1.782 1.51 Multifamily and Senior Housing 1.454 1.469 1.27 1.541 Commercial Real Estate 0.709 0.758 1.227 1.674 Single-Family Mrtg Warehouse 0.58 0.757 0.795 0.695 Energy 0.717 0.756 1.117 1.47 Commercial and Business 0.746 0.843 1.012 1.3

  9. Slide 9: Nonperforming Assets

    Nonperforming Assets Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Residential Mortgage 18.19 22.993 23.029 30 40 Other 13 13 13.08 12 22 Homebuilder (Private) 88 117

  10. Slide 10: Homebuilder Portfolios

    Homebuilder Portfolios As of Dec 31, 2007 National (mostly public builders) Approximately half secured Borrowing base Regional (all private builders) Over 90% secured Policy limits Land Max. 50% Original LTV Lots Max. 75% Original LTV Houses Max. 80% Original LTV Guarantees National Private National

  11. Slide 11: Regional Homebuilder Loans

    Regional Homebuilder Loans *Represents approx. 3% of total loans. As of December 31, 2007 ($ in millions) Houses Land/Lots & Other Total % of Total Northern & Central California 94 164 258* 20% Other California 94 128 222 18% Texas 105 27 132 10% Florida 52 67 119 9% Colorado 51 34 85 7% Arizona 30

  12. Slide 12: Single-Family Mortgages Detail

    Single-Family Mortgages Detail *Current loan to value reflects changes in loan balance and changes in property value since loan origination (with changes in value estimated using Office of Federal Housing Enterprise Oversight data from September 2007). **Lifetime loss projection from S&P Levels (r)

  13. Slide 13: Mortgage Backed Securities

    Mortgage Backed Securities At Issue 12/31/2007 East 0.107 0.145 As of Dec. 31, 2007 ($ Billions) Amortized Cost Fair Value Available for Sale: Agency $0.57 $0.57 Private $1.37 $1.31 Held to Maturity: Agency $1.23 $1.23 Private $2.41 $2.20 Total: $5.58 $5.31 Private Issue MBS Adjustable rate All AAA

  14. Slide 14: Capital: Guaranty vs. Peers

    Capital Guaranty as of December 31, 2007 Peers* as of September 30, 2007 OTS Well Capitalized Standard Total Risk-Based Capital Tier 1 Risk-Based Capital Tier 1 (Core) Capital (Leverage) 10% 6.0% 5.0% 10.5% 11.9% 7.7% 8.1% 9.6% 10.0% 5.8% 6.6% TCE/TA *Peers: ASBC, BOH, BOKF, BXS, CBSH, CFR, CNB, CYN

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