Guaranty Federal Bancshares Inc. (Nasdaq: GFED) posted a 79% increase in third-quarter profits as pandemic-related expenses tapered off.
The Guaranty Bank operator reported net income of $3.4 million, or 78 cents per diluted share, up from $1.9 million, or 44 cents per diluted share, a year earlier, according to a news release. Compared with the same quarter of 2020, the company's provision for loan losses was down by $850,000; those provisions were common last year in anticipation of expected future loan modifications and deferrals.
"Despite continued competitive and interest rate pressures, the company experienced strong earnings in the third quarter, recognizing significant improvement over the same quarter in 2020," Guaranty President and CEO Shaun Burke said in the release. "The low interest rate environment and strong housing market continue to keep our mortgage team closing loans at a record pace. We expect to finish 2021 strong and are already looking forward to 2022 and beyond.”
As of Sept. 30, Guaranty Bank's assets were $1.2 billion and deposits were $1 billion. The company has 16 full-service 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 $24 as of 9:24 a.m., compared with a 52-week range of $13.94 to $26.99 per share.
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