YOUR BUSINESS AUTHORITY

Springfield, MO

Log in Subscribe
Guaranty Bank's second quarter profits drop by more than 22%.
SBJ file photo
Guaranty Bank's second quarter profits drop by more than 22%.

Expected loan losses impact Guaranty's bottom line

Posted online

Last edited 8:02 a.m., July 24, 2020

Guaranty Federal Bancshares Inc. (Nasdaq: GFED) President and CEO Shaun Burke cited "uncertainty" with the economy due to the COVID-19 pandemic in reporting the company's second quarter results.

Net income largely was impacted by a 650% increase in provision for loan losses, which totaled $750,000 during the quarter. In a news release, Burke said the increase was included as a "precautionary measure" as the company anticipates loan deferments and payment delays due to the pandemic.

"With so much uncertainty, the question remains of how much will this impact the individuals, businesses and communities we know and work with?" he said in the release. "The answers will eventually come, but until then, we are doing our part to maintain stability in the areas that Guaranty Bank can make a difference."

The Guaranty Bank operator issued 650 small-business loans to support local payrolls, he said.

The company's second quarter profits were down by more than 22% to $1.9 million, compared with $2.4 million a year earlier. Diluted share earnings dipped to 43 cents from 49 cents per share in the same quarter of 2019, according to the release.

As of June 30, Guaranty's assets were $1.1 billion and deposits were roughly $931 million. The company has 16 branches in Greene, Christian, Jasper and Newton counties, as well as a loan production office in Webster County.

GFED shares were trading at $15.25 as of 9:21 a.m., compared with a 52-week range of $12.70 to $26.93.

Comments

No comments on this story |
Please log in to add your comment
Editors' Pick
Open for Business: Heart of Grace Boutique

A former employee in the food service industry transitioned into a first-time business owner; grocery chain Aldi made its Branson debut; and Ozark-based nonprofit Garde’n Gate Provisions opened a thrift store and donation center.

Most Read