Guaranty Bank Receives 7th Consecutive Outstanding Rating

The Office of Thrift Supervision (OTS), an agency of the Department of Treasury, has awarded Guaranty Bank with an "Outstanding Rating" for its Community Reinvestment Act (CRA) compliance. Since its inception in 1988, Guaranty has received seven consecutive "outstanding" ratings for its lending, investment and service activities to low- and moderate-income (LMI) neighborhoods and communities served by the Bank.

"A relentless commitment to making a positive impact in the communities where we live and work is a core part of Guaranty's mission," said Linda Walker, Senior Vice President Guaranty Bank. "We are proud of our seventh consecutive 'Outstanding Rating' and will continue to work with business, civic and charitable causes with redevelopment projects to help grow and sustain our communities."

The OTS conducts an examination approximately every two years to ensure financial institutions are adhering to CRA requirements, including providing financial and credit products and services to underserved communities. Based on its evaluation, OTS concluded Guaranty's record of lending to LMI borrowers and the geographic distribution of loans in various census tracts was excellent. In addition, Guaranty received exceptional marks for its loans to small businesses with annual revenues of $1 million or less.

The most exceptional initiative was Guaranty's active role in originating Community Development loans for LMI families which promoted economic development and revitalized or stabilized underserved geographies and/or disaster areas. The following outlines several organizations in Texas and California that Guaranty Bank partnered with to provide financial and credit services through its CRA lending, investment and service initiatives:

Texas Mezzanine Fund
The Texas Mezzanine Fund, Inc. (TMF) is a statewide Community Development Financial Institution (CDFI) that provides financing for businesses located in distressed areas, minority-owned and small businesses that create jobs for low- and moderate-income people. Through investment partnering, Guaranty Bank and TMF were able to revitalize and stabilize distressed and/or emerging areas, provide access to capital for small- and minority-owned businesses, create jobs for low- and moderate-income persons, increase the local tax base, increase the supply of affordable housing, finance community facilities and enhance the economic impact of local Community Development Corporations (CDCs) and Community Development Financial Institutions (CDFIs). Guaranty has invested more than $10.8 million in equity and the Bank's CEO, Ken Dubuque, served as TMF board chair for seven years. Leveraging the total equity of TMF, $14.5 MM, has enabled the organization to provide in excess of $27 MM in loans to small businesses located throughout the state of Texas.

ACCION Texas
ACCION Texas has provided business loans to start-up and existing businesses in Texas since 1994. ACCION, in partnership with Guaranty and other Lenders, has made over 8,000 loans for more than $63 million to aspiring business owners who were unable to obtain financing from traditional sources.

Northern California Community Loan Fund
The Northern California Community Loan Fund (NCCLF) is a nonprofit lender and technical assistance provider that work to revitalize low-income communities. NCCLF provides loans ranging from $10,000 to $1 million and financial training to organizations that develop affordable housing, community facilities, job-training programs, and vital human services.

Guaranty Bank and NCCLF partnered to strengthen the economic base of low-income communities by providing access to affordable loan capital and technical assistance. NCCLF provided Guaranty with a reliable mechanism for channeling its capital to effective community development projects. As a result, Guaranty invested $600,000 which assisted the organization in making 246 loans totaling more than $69 million.

Clearinghouse Community Development Financial Institution
The Clearinghouse Community Development Financial Institution (Clearinghouse CDFI) is a for-profit corporation that is addressing unmet credit needs in Southern California. Clearinghouse CDFI provides direct loans for affordable housing, community development projects, small business and other qualified CRA activities. Guaranty has invested $310,000 which has resulted in the organization making 150 loans totaling more than $92 million.

In addition, Guaranty employees, including senior management, serve on boards and provide exceptional volunteer services throughout communities in both Texas and California. The following partnerships further highlight the Bank's commitment to provide CRA lending, investment and service to LMI neighborhoods and communities: Our Casas Resident Council, Habitat for Humanity, Port Arthur Housing Authority, Dallas Leadership Foundation, Latino Learning Center, STAND, Housing Authority of Travis County, Self Help Housing of East Texas, Riverside Housing CDC, Easter Seals of Greater Southwest Texas, HomeFree - USA, Dallas Housing Authority, Dallas Park and Recreation, Community Service Foundation, United Cerebral Palsy of Texas and South Dallas Fair Park Innercity CDC. Guaranty continues to provide grant assistance for downpayment and closing costs to LMI first time homebuyers.

About Guaranty Bank
Guaranty Bank provides consumer and business banking services through a network of more than 150 banking centers in Texas and California as well as financing to middle market companies, independent energy producers, and the real estate industry. Guaranty Bank is a subsidiary of Guaranty Financial Group Inc., which is the second largest publicly-traded financial institution holding company headquartered in Texas, and one of the 50 largest publicly-traded financial institution holding companies based in the U.S. ranked by asset size. Guaranty Bank also operates an insurance agency, Guaranty Insurance Services, Inc.

Guaranty Bank is a member FDIC and equal housing lender.

Guaranty scores high in customer satisfaction compared to the U.S. largest retail banks based on fourth quarter 2007 research conducted by the American Customer Satisfaction Index (ACSI).

For more information about the Bank's Community Reinvestment Act compliance, visit www.guarantybank.com under the Community Involvement section.