Guaranty Bank not closing in Missouri

Springfield-based Guaranty Federal Bancshares Inc. and its subsidiary, Guaranty Bank, are reassuring customers that the bank is stable after media coverage of the failure of Texas-based Guaranty Financial Group.

The announcement that the Texas institution was closed Aug. 21 by the Federal Deposit Insurance Corp. and acquired by Alabama-based Compass Bank has led to confusion among some Springfield customers, according to Guaranty Federal Bancshares Marketing Director Carlye Wannenmacher, who said the bank has received several calls from worried customers.

Springfield's Guaranty Bank operates nine branches and three loan-production offices in southwest Missouri, according to a company release.

"We understand that our customers are extremely concerned to hear that the Guaranty Bank in Texas has failed, but they can rest assured that their local Guaranty Bank has absolutely no affiliation with that failed institution," President and CEO Shaun Burke said in the release. "Our bank is financially sound."

The company posted a $1.6 million loss in the second quarter, based mostly on increased provision for loan losses and an increase in nonperforming assets. "Due to the continuing significant challenges in the economy our nonperforming assets remain elevated, but manageable," Burke said at the time.

Shares of Guaranty Federal Bancshares (Nasdaq: GFED) closed Aug. 21 at $5.35 and are trading up at $5.39 as of 10:30 a.m. Central time.

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