Guaranty 1Q earnings up 37 cents per share from 2009

Guaranty Federal Bancshares Inc., the Springfield-based holding company for Guaranty Bank, posted first-quarter earnings of 7 cents per share, up from a loss of 30 cents per share a year earlier.

The earnings-per-share increase was 44 cents when compared to the loss of 37 cents per share in the fourth quarter of 2009.

The bank posted net income for the quarter of $475,000, up from a loss of $592,000 in the first quarter of 2009. The increase, according to the bank's earnings release, is attributed to several factors:

• An increase in net interest margin to 2.41 percent, up 72 basis points from a year earlier;

• A slight decrease in provision for loan losses, to $950,000 from $980,000 in 1Q 2009;

• An increase in noninterest income, which totaled $1.19 million compared to $809,000 the year before; and

• A decrease in noninterest expense, down to $3.64 million from $3.74 million.

"We are encouraged to report the results for the first quarter as it reflects our efforts to improve net interest margin, resolve problem credits and control expenses," President and CEO Shaun A. Burke said in the release. "As we look at the remainder of 2010, we remain cautiously optimistic that the economy is improving, as we have seen improvement in our loan portfolio and in the stabilization of credit costs. That said, economic conditions remain fragile, and we expect high unemployment levels to continue, creating an ongoing challenge on consumer spending and growth."

Guaranty had total assets of $734.4 million as of March 31, along with deposits of $509.5 million. Shares of company stock closed Thursday at $5.85, compared to a 52-week range of $4.61–$7.50.[[In-content Ad]]