Guaranty Federal Bancshares announces stock repurchase

Springfield-based Guaranty Federal Bancshares Inc., the holding company for Guaranty Federal Savings Bank, announced April 2 that it repurchased 25.7 percent 1,048,028 shares of its common stock for approximately $15.7 million. The stock was purchased from Alpine Associates and Great Southern Bancorp Inc. and its affiliates.

"The stock repurchase resolves a dispute involving Guaranty Federal and each of the selling parties regarding claims that Guaranty Federal had a prior obligation to purchase the shares," said Guaranty Federal President Don M. Gibson. He added that the repurchase also represents an opportunity for Guaranty Federal to retire a large block of stock that would otherwise have taken a longer time to repurchase.

The shares repurchased represent the two largest blocks of stock controlled by groups of shareholders. The transaction was funded with cash Guaranty Federal received as a result of the acquisition of five Commercial Federal Bank branches in Springfield.

"This repurchase is a prudent use of Guaranty's excess capital, as it will reduce our capital ratio to be more in line with peers, and is expected to increase earnings per share and return on equity," Gibson said.

Since 1998, Guaranty Federal has repurchased 3,325,040 shares, or 52.3 percent, of its outstanding common stock.