Guaranty’s acquisition drops Q1 earnings

Guaranty Federal Bancshares Inc.'s (Nasdaq: GFED) recently completed acquisition of Carthage-based Hometown Bancshares Inc. adversely affected the Springfield company’s first-quarter bottom line.

The operator of Guaranty Bank reported $1.36 million in net income available to common shareholders, a 5 percent decrease from $1.43 million a year earlier. Diluted share earnings dropped by 2 cents to 30 cents, according to a news release.

Guaranty recorded one-time buyout expenses totaling $228,000 related to the $4.6 million purchase of Hometown Bancshares. The acquisition added seven branches to Guaranty’s existing portfolio of 11, as well as a loan production office in Webster County.

First-quarter financial notes:
    •    While net income worsened, net interest income was $6 million, a 7.7 percent increase from $5.6 million a year earlier.
    •    Provision for loan losses dropped by 53 percent to $225,000.
    •    Gross loans rose by $7.2 million, or 1 percent, during the quarter.

As of March 31, Guaranty held assets of $807 million and deposits of $633 million, according to the release.

GFED shares were trading at $23.46 as of 11:11 a.m., compared with a 52-week range of $15.89 to $23.71.