Guaranty Bank boosts 2Q profits by 356%

Springfield-based Guaranty Federal Bancshares Inc. (Nasdaq: GFED) posted second-quarter profits of $1.6 million, a 356 percent increase compared to $344,000 in the same quarter last year.

On announcement of its quarterly financials this morning, GFED shares jumped to a 52-week high of $14.50 as of 10:47 a.m. Its 52-week low is $6.29.

Guaranty recorded diluted earnings per share of 49 cents during the quarter ended June 30, compared to a loss of two cents for the same period a year ago, according to a news release.

Among key movements was an 88 percent decrease in the company's provision for loan losses to $250,000 from $2.1 million in second-quarter 2012.

During the quarter, the Springfield holding company for Guaranty Bank completed its repayment of a warrant issued to the U.S. Department of the Treasury through the federal government's Troubled Asset Relief Program. The company purchased the warrant for $2 million after issuing the Treasury 459,459 shares of its common stock in 2009.

Second-quarter financial notes:

• Net interest income was roughly flat at $5.1 million compared to $5.2 million a year ago.
• Noninterest income dropped 61 percent to $1 million, and noninterest expense decreased 29 percent to $3.9 million.
• Stockholders' equity decreased $2.4 million during the quarter.

As of June 30, Guaranty Bank's total assets were $640.2 million and its deposits were $511.9 million. The company operates nine branches in Greene and Christian counties, as well as a loan production office in Webster County, according to the release.