Guaranty’s fourth-quarter net income falls 24%

Earnings per share for the quarter ended Dec. 31 were 49 cents per share, down 20 percent from 61 cents per share in fourth-quarter 2007. Earnings per share for 2007 were $2.19 for the year, a 3 percent decline from $2.25 the year before.

Net income was $1.3 million for the quarter, down 24 percent from $1.7 million the same period a year ago, and $6.1 million for the year, compared to $6.5 million in 2006.

Noninterest income for the quarter was $1.07 million, compared to $1.1 million a year ago, and $4.9 million for the year, up 29 percent from $3.8 million the previous year.

Total loans for the year increased 7 percent from 2006 to $516 million.

Guaranty said the declines in net income and earnings per share were results of three factors: a decrease in the company’s net interest margin due to a drop in interest rates for the period; an increase in personnel costs because of new hires in accordance with Guaranty’s plans for future growth; and increased expenses related to audit and compliance, according to a news release.

“The company produced another strong year of earnings while positioning the bank for the future,” CEO and President Shaun Burke said in the release. “Although we had no direct impact from the subprime meltdown or the significant investment portfolio write-downs affecting the industry, our fourth-quarter results reflect the challenging operating environment facing financial institutions today, brought about by the unexpected and rapid downturn in the economy.”

The Springfield-based company’s shares (Nasdaq: GFED) closed Friday at $25 and were trading at $24.94 as of 11 this morning. The 52-week range is $24.50 to $30.85.