Citing acquisition expenses, Guaranty posts net loss

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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.