Springfield-based Guaranty Federal Bancshares Inc. (Nasdaq: GFED) registered a 56.4 percent loss in net income during the second quarter.
The holding company for Guaranty Bank posted earnings of $344,000 during the second quarter, compared to $789,000 in the same quarter of 2011, according to a news release.
The company took a 2-cent loss per diluted common share during the quarter ended June 30, compared to 19-cent earnings per share in second-quarter 2011.
Second-quarter 2012 financial notes:
- Net interest income increased slightly to $5.11 million, compared to $5.1 million in second-quarter 2011.
- Noninterest income rose 45.5 percent to $1 million from $715,000, and noninterest expense decreased slightly to $3.9 million from $3.92 million.
- The company's provision for loan losses was $2.1 million, up 110 percent from $1 million.
The release pointed to Guaranty's nonperforming assets, which increased 55.8 percent to $42.1 million during the latest quarter from $27 million in the same quarter of 2011. Officials attributed the gain to two loan relationships during the quarter: a $7.3 million loan, in which the borrower requested a modification of the payment resulting in a troubled debt restructuring; and a $6.5 million loan, in which the borrower claimed he was a victim of an alleged fraud scheme that led to a significant portion of his investment portfolio being embezzled.
"We are disappointed with the bottom-line results for the quarter," Guaranty President and CEO Shaun Burke said in the release. "However, excluding the sizable provision expense associated with the two loan relationships, operating results improved on a linked-quarter basis and compared to the second quarter of 2011.
"Reducing nonperforming assets continues to be a primary focus of the bank."
As of June 30, Guaranty Bank's total assets were $656.6 million and its deposits were $496.4 million. The company operates nine branches in Greene and Christian counties and loan production offices in Taney, Wright, Webster and Howell counties, according to the release.
The company's shares were trading at $6.97 as of 10:14 a.m., compared to a 52-week range of $3.84 to $9.50.[[In-content Ad]]
