Guaranty Bank caps off year with record earnings

Guaranty Federal Bancshares Inc. (Nasdaq: GFED) last year produced $7.3 million in net income, a record for the Springfield-based company.

The Guaranty Bank operator’s yearly profits rose 42 percent from the $5.2 million figure the company posted in 2017. Diluted share earnings for the year climbed to $1.64, a 48-cent increase, according to a news release.

“Steady expansion and consistent performance, along with our second-quarter acquisition of Hometown, led to record annual earnings,” Guaranty President and CEO Shaun Burke said in the release, referencing the purchase of Carthage-based Hometown Bancshares Inc. for $4.6 million.

2018 financial highlights:
    •    To end the year, Guaranty’s fourth-quarter earnings came to $2.4 million, a 469 percent jump from $419,000 a year earlier. Fourth-quarter 2017 earnings were adversely affected by a one-time $1 million expense related to federal tax reform, Springfield Business Journal previously reported.
    •    Gross loans rose by 23 percent, or $149.2 million, during the year.
    •    Salaries and employee benefits grew 24 percent to $14.9 million compared with $12 million in 2017.

As of Dec. 31, Guaranty’s assets were $965.1 million, a 21 percent increase from a year earlier, and deposits were $749.6 million, a 23 percent jump. The company operates 16 branches in Greene, Christian, Jasper and Newton counties, as well as a loan production office in Webster County, according to the release.

GFED shares were trading at $22.49 as of 9 a.m., compared with a 52-week range of $20.11 to $27.39.