Guaranty Bank revision produces net loss

The revision produces a quarterly net loss of $2.5 million, or 95 cents per diluted share. The bank originally reported second-quarter earnings of 26 cents per share on $681,000 in net income.

The loss compares to a 23-cent per share gain in the first quarter and a 50-cent per share gain on $1.42 million in second-quarter 2007 net income.

“The current economic environment remains very challenging and credit quality deterioration is the overriding issue for all financial services companies,” Guaranty Bank CEO and President Shaun Burke said in the revised earnings release. “It is important to note that all of our capital ratios remain above the levels required for Guaranty Bank to be considered a well-capitalized financial institution, following the additional provision.”

Specifically, Burke noted that as of June 30, Guaranty Bank’s Tier 1 leverage ratio was 8.17 percent, its Tier 1 risk-based capital ratio was 9.27 percent, and its total risk-based capital ratio was 10.56 percent, which Burke said are “all exceeding the minimums of 5 percent, 6 percent and 10 percent, respectively.”

Shares (Nasdaq: GFED) closed July 30 at $13.10, compared to a 52-week range of $12.15 to $30.50.