Guaranty's profits drop in 2020

Guaranty Federal Bancshares Inc.'s (Nasdaq: GFED) annual financial results were dampened by the coronavirus pandemic that took hold early last year.

The Springfield-based Guaranty Bank operator posted 2020 net income of $6.8 million, a roughly 27% drop from $9.4 million in 2019, according to a news release. Diluted share earnings for the year fell 26% to $1.57 from $2.11 per share in 2019.

Company officials cited higher loan loss expenses "as a precautionary response to negative economic conditions impacting the local economy and select borrowers." The company's provision for loan losses in 2020 climbed to $3.6 million from $200,000 in 2019, a 1,700% change.

“2020 will go down as the year that the COVID-19 pandemic impacted nearly every facet of our lives," Guaranty Bank President and CEO Shaun Burke said in the release. "Despite these events, we continued to serve our communities by refinancing record amounts of mortgages, experienced unprecedented growth in deposits, advanced technological initiatives to assist customers in socially distanced settings and supported over 8,000 local jobs by originating 650 loans via the SBA Paycheck Protection Program."

Total assets were up 13% to $1.1 billion, with $37.3 million of growth attributed to the Small Business Administration forgivable loan program.

Guaranty Bank operates 16 full-service branches in Greene, Christian, Jasper and Newton counties, as well as a loan production office in Webster County, according to the release.

GFED shares were trading at $18.89 as of 9:52 a.m., compared with a 52-week range of $12.70 to $25.13.