Guaranty Bank 2Q profits drop 10%

Springfield-based Guaranty Federal Bancshares Inc. (Nasdaq: GFED) posted $1.2 million in net income available to common shareholders during the second quarter, a 10.3 percent decrease compared to profits of $1.4 million in the same quarter last year.

The holding company of nine Guaranty Bank branches in Greene and Christian counties reported diluted share earnings of 28 cents for the three months ended June 30, a 5-cent downtick from second-quarter 2013, according to a news release.

Second-quarter financial notes:

• Company officials reported increased pressure on interest income due to pricing competition on new and existing credit relationships. Net interest income decreased to $5 million from $5.2 million in the second quarter last year.
• Guaranty Bank's operating income dropped 15.1 percent to $2 million from $2.4 million a year earlier.
• The company's provision for loan losses rose 30 percent to $325,000 from $250,000.

As of June 30, Guaranty Bank held $619.8 million in assets and $481.2 million in deposits, according to the release.

GFED shares were trading at $12.67 as of 10:19 a.m., compared to a 52-week range of $10.12 to $13.42.