GFED reports earnings

Guaranty Federal Bancshares Inc. announced earnings of 25 cents per share for the quarter ended Dec. 31, 2001. According to a Guaranty Federal news release, that amount represents a 19 percent increase in quarterly earnings compared to the 21 cents per share the company reported during the same quarter in 2000.

During the quarter that ended Dec. 31, 2001, Guaranty Federal Bancshares sold shares of its Federal Home Loan Mortgage Corporation stock at a significant gain to continue shifting its asset mix from lower-yielding investments to higher-yielding loans, the release said.

Also included in earnings were certain nonrecurring charges associated with the bank's acquisition of additional branches and legal and professional expenses.

Excluding those items, earnings per share for the quarter would remain at 25 cents per share. At Dec. 31, 2001, the bank held 88,000 shares of FHLMC stock available for sale with an unrealized gain of approximately $5,755,000.

In its December 2001 acquisition of the Springfield branch locations of Com-mercial Federal Bank, Guaranty Federal assumed approximately $41.2 million in deposit liabilities, and purchased approximately $15.5 million in loan assets, according to the release.

During the 12 months that ended Dec. 31, 2002, Guaranty Federal repurchased 380,463 shares of stock at an average cost of $12.52 per share. During the same period, the company paid semi-annual dividends of 24 cents and 25 cents per share. Additionally, book value has increased to $13.30 per common share outstanding at Dec. 31, 2001, compared to $12.95 per common share for the same period in 2000 representing an increase of 2.7 percent.

Guaranty Federal previously announced a plan to repurchase 437,764 shares of the company's common stocks. As of Dec. 31, 2001, 380,463 shares had been repurchased at an average cost of $12.52 per share.

Guaranty Federal Bancshares Inc. is traded on the NASDAQ under the symbol "GFED."