A year ago, acquisition expenses hit Guaranty Federal Bancshares Inc.’s (Nasdaq: GFED) bottom line. Now, it’s realizing gains on that purchase.
Citing financial windfalls from the April 2018 acquisition of Carthage-based Hometown Bancshares Inc., the Guaranty Bank operator reported second-quarter net income of $2.4 million, compared with a loss of $343,000 a year earlier, according to a news release.
“As we recently celebrated the one-year anniversary of integrating Hometown Bank, the merits of the acquisition are evident in our financial performance in several key areas,” Guaranty President and CEO Shaun Burke said in the release. “A more robust footprint in our markets, along with efficiencies gained from the acquisition, have led to a steady increase in earnings and earnings per share.
“We enter the second half of 2019 in a strong position to grow by focusing on being a trusted business partner to our valued customers while continuing to return value to our shareholders.”
Second-quarter financial notes:
• Guaranty last month declared its 21st consecutive quarterly dividend.
• The company invested more than $312,000 buying back 13,608 of its shares.
• Total interest income was up nearly 9% to $11.3 million compared with the prior year.
Guaranty’s assets were $977.4 million and deposits were $802.5 million as of June 30. The company has 16 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 $23.44 as of 10:26 a.m., compared with a 52-week range of $20.11 to $27.39.
Adrianna Norris became a first-time business owner with the opening of Finley River Chiropractic; PaPPo’s Pizzeria & Pub launched its newest location; and Huey Magoo’s opened its second store in the Ozarks.