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Guaranty Bank converted Hometown Bancshares Inc.’s branches during the second quarter, including this Joplin location. Company officials cited costs from the acquisition for a second-quarter net loss.
Photo provided by Guaranty Bank
Guaranty Bank converted Hometown Bancshares Inc.’s branches during the second quarter, including this Joplin location. Company officials cited costs from the acquisition for a second-quarter net loss.

Citing acquisition expenses, Guaranty posts net loss

Posted online

Guaranty Federal Bancshares Inc. (Nasdaq: GFED) reported a net loss after recording one-time expenses related to its purchase of Carthage-based Hometown Bancshares Inc.

For the acquisition that closed April 2, the Guaranty Bank operator took a second-quarter $3.2 million expense hit. Costs included the termination of a vendor contract to the tune of $2 million, as well as legal, professional, employee benefit and other data processing expenses, according to a news release.

The end result was a $343,000 net loss during the second quarter for Guaranty Bank, a 121.5 percent drop from $1.6 million a year earlier. Excluding the acquisition costs, Guaranty’s net income would have been $1.9 million.

“Once we get past the noise in the numbers and the nonrecurring merger expenses, we are confident the results of the combined company will further enhance long-term shareholder value,” Guaranty President and CEO Shaun Burke said in the release.

Second-quarter financial notes:
    •    Net interest income climbed 35 percent to $8 million.
    •    Salaries and employee benefits jumped roughly 40 percent to $4.1 million.
    •    Provision for loan losses dropped 13 percent to $500,000.

Guaranty reported $960.5 million in assets and $764.8 million in deposits as of June 30. The company operates 18 branches, according to the release.

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