Guaranty boosts profits in 4Q

Springfield-based Guaranty Federal Bancshares Inc. (Nasdaq: GFED) posted fourth-quarter net income of $1.5 million, a 13.3 percent increase compared to $1.3 million in the same quarter of 2011.

During the quarter ending Dec. 31, the holding company for nine Guaranty Bank branches in Springfield, Nixa and Ozark recorded earnings per diluted share of 45 cents, a 7-cent uptick compared to fourth-quarter 2011, according to a news release.

Fourth-quarter financial notes:

• Net interest income - a focus for the company - dropped to $7 million from $7.5 million in the same quarter of the previous year.  "A weak economy, increased regulation and a historically low interest rate environment has made it very difficult to increase earning assets, especially in the loan portfolio," the release said.
• Noninterest income dropped to $992,000 from $2 million. The company pointed to fourth-quarter 2011 sales of roughly $28.1 million in available-for-sale securities, with a realized gain of $1.3 million.
• The company's provision for loan losses dropped to $350,000 from $550,000.

Full-year net income decreased 49.3 percent to $1.9 million, compared to $3.8 million in 2011, the release said.

As of Dec. 31, Guaranty's assets were $660.4 million and its deposits were $500 million.

The company's shares were trading at $8.96 as of 9:50 a.m., compared to a 52-week range of $5.68 to $9.50.