Guaranty Bank reports deeper 2008 loss in revised results

After opting to record an additional loan loss provision for fourth-quarter 2008, Guaranty Federal Bancshares Inc. has revised its year-end results to show a loss nearly $2 million deeper than first reported.

The Springfield-based holding company for Guaranty Bank originally reported 2008 results Jan. 23.

"As a result of continuing analysis of a specific credit and as a result of a regular examination by the Missouri Division of Finance, the bank determined it prudent to record an additional loan loss provision of $3 million for the fourth quarter for 2008," according to a bank news release.

The added provision drags Guaranty's initially reported $3.47 million 2008 loss down to $5.36 million, or a loss of $2.06 per share. That's compared to a $6.1 million profit, or $2.19 per share, in 2007.

The new loan loss provision was due to "one problem loan," according to the release.

The bank, however, remains well-capitalized by federal standards, the release said. Guaranty participated in the federal government's Capital Purchase Program, selling $17 million in preferred stock and related warrants to the U.S. Treasury in January.

Guaranty shares (Nasdaq: GFED) were trading at about $25 a year ago but have been on a steady decline, bottoming out at $3.85 on March 3. Shares were trading at $5.95 as of 10:15 this morning.