Guaranty posts third-quarter loss

Guaranty Federal Bancshares Inc. (Nasdaq: GFED) recorded a third-quarter net loss of $717,000, a 159 percent decrease compared to positive earnings of $1.2 million in the same quarter of 2011.

The Springfield-based holding company for nine Guaranty Bank branches in Springfield, Nixa and Ozark recorded a loss per diluted share of 34 cents during the quarter ending Sept. 30, compared to earnings per share of 35 cents in the third quarter last year, according to a news release.

"The loss in the quarter was directly related to the negative impact of high nonperforming assets," Guaranty President and CEO Shaun Burke said in the release. "However, during the third quarter, we made significant progress, reducing problem assets nearly 43 percent and lowering the nonperforming assets to total assets ratio from 6.4 percent to 3.7 percent.

"We continue to aggressively work to eliminate the challenging assets as our core operations remain steady in the slowly improving economy."

Nonperforming assets decreased to $24.1 million during the quarter, down $18 million, or 43 percent, from June 30, according to the release.

Third-quarter financial notes:

• Guaranty's provision for loan losses was $2.6 million, a $1.7 million increase from the same quarter last year.
• Interest income decreased 11.4 percent to $6.8 million, and interest expense dropped 29 percent to $1.7 million.
• Liabilities and stockholders' equity was $653.6 million as of Sept. 30, compared to $648.5 million at the same time last year.

According to Federal Deposit Insurance Corp. data released Oct. 2, Guaranty placed fifth in the Springfield metropolitan area for deposit market share. In the five-county area, Guaranty had deposits of $489.9 million, or 6.3 percent of the market, as of June 30, according to Springfield Business Journal archives.

As of Sept. 30, the company's assets were $672.7 million, and its deposits were $492.6 million, the release said.

Guaranty's shares were trading at $7.50 as of 11:39 a.m., compared to a 52-week range of $4.76 to $9.50.